Date: Thu, 9 Dec 1999 10:54:28 -0500 (EST) From: Garrett Wollman <wollman@khavrinen.lcs.mit.edu> To: ports@freebsd.org Subject: FYI: [Dean Skandalis: Re: Submit Your Question to MPEGLA] Message-ID: <199912091554.KAA54659@khavrinen.lcs.mit.edu>
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From: "Dean Skandalis" <dskandalis@mpegla.com>
To: wollman@lcs.mit.edu
Subject: Re: Submit Your Question to MPEGLA
Date: Thu, 09 Dec 1999 10:44:11 -0500
Hello, Garrett.
Thank you for your inquiry and for your interest in MPEG LA. Please
allow me to give you some background information about the MPEG-2 Patent
Portfolio License and address the issue you raised regarding Open Source
software with MPEG-2 capabilities.
By making worldwide MPEG-2 Essential Patent rights available to all
users on the same terms at fixed rates under a single license, the
MPEG-2 Patent Portfolio License is the easiest, most cost-effective way
for MPEG-2 users to obtain patents right coverage they need for their
MPEG-2 products. MPEG-2 encoders/decoders whether in hardware or
software are included among them, and all MPEG-2 products of like
functionality are treated the same. As such, they all bear the same
royalty. Therefore, the short answer to your question is that proper
licensing is required for a software encoder/decoder and royalties will
apply.
Please allow me to explain further:
Royalties are for the use of MPEG-2 technology developed by the patent
holders to the MPEG-2 Patent Portfolio License. In the spirit of the
License, fairness and nondiscriminatory treatment demand that they be
applied consistently to assure that equivalent functionality carries
equivalent royalties; to do otherwise would give one product an unfair
advantage over another. Decisions on how to market and sell products
which use the MPEG-2 technology are and should be made by users, and
MPEG-2 royalties charged by patent holders should not be a factor.
Therefore, royalties are charged and payable on all MPEG-2 products
regardless of use, volume, price or whether there is any charge (direct
or indirect) at all. Some users may choose to give away products at
reduced prices, bundle them with other products or charge nothing at all
(for example, in order to induce customers to purchase other products or
services). It would be impractical (and undesirable) for MPEG LA to
become involved in those decisions or to make these kinds of
distinctions among products; plus the value of the MPEG-2 technology is
the same in all cases. Therefore, consistent with normal arms length
business practice, MPEG LA doesn't get involved with these decisions,
and the royalties we charge do not depend on, them.
I hope I have answered your question. If you would like additional
information or have further questions, please feel free to contact me
directly.
Best regards,
Dean Skandalis
Licensing Associate
MPEG LA, LLC
mpegla.website@www47.rapidsite.net wrote:
> Hello,
> My name is Garrett Wollman.
> My email address is wollman@lcs.mit.edu.
> My question is :
> Many Open Source software
> systems exist with MPEG
> encoding and decoding
> capability. What is MPEG LA's
> position with respect to
> these programs, and is
> there an end-user licensing program to enable the lawful
> use of such software?
>
> Thank you.
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