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So the MPEG-LA isn't just a cartel of large electronics and software companies getting together to lock any upstarts (like Google) out of the market and protect

So the MPEG-LA isn't just a cartel of large electronics and software companies getting together to lock any upstarts (like Google) out of the market and protect their margins?

ghshephard 16y ago
Correct - Most of the MPEG-LA Licensors are also licensees. Their primary business line is not suing other companies, but, rather, building and selling products. The patent pools accomplish two things. (1) It eliminates a "Patent Thicket" - which is a scenario where a potential licensor would have to negotiate with a bunch of different companies, and (2) creates _some_ (but not perfect) certainty that they won't be sued for violating patents by distributing a product. With regards to "locking out any upstarts" - Google is _already_ a licensee of H.264 - and, regardless, the license fees they would pay are equal to what apple, or microsoft pay - these companies hit their royalty cap almost instantly, and it's a small number compared to the amount of product they distribute (on the order of $5mm) Their has been much, much Internet debate on why Google dropped support for H.264, but, if the VP8 Codec takes off, and MPEG-LA is able to put together a patent pool, I fully expect Microsoft and Apple to support it as a first class codec in their products. I personally don't know what Google was trying to accomplish - go eyeball the list of essential patents for AVC/H.264 [1] and tell me whether you think any modern codec doesn't infringe a few hundred of them. I've worked for several of these large companies - and their mindset typically isn't that of a "Patent Troll" - they are just trying to get reasonable license fees for the IP that other companies are distributing that use those patents, and, most importantly, avoid being sued by Trolls and other low-lifes that are trying to leech $$$ from companies that are actually creating value. (Though, our General Counsel has used words somewhat more derogatory than "leech" and "low-lifes" when referring to patent trolls) [1] http://www.mpegla.com/main/programs/avc/Documents/avcCrossRefChart.pdf http://www.mpegla.com/main/programs/avc/Documents/avcCrossRe...

So the MPEG-LA isn't just a cartel of large electronics and software companies getting together to lock any upstarts (like Google) out of the market and protect their margins?

ghshephard 16y ago

Correct - Most of the MPEG-LA Licensors are also licensees. Their primary business line is not suing other companies, but, rather, building and selling products. The patent pools accomplish two things. (1) It eliminates a "Patent Thicket" - which is a scenario where a potential licensor would have to negotiate with a bunch of different companies, and (2) creates _some_ (but not perfect) certainty that they won't be sued for violating patents by distributing a product. With regards to "locking out any upstarts" - Google is _already_ a licensee of H.264 - and, regardless, the license fees they would pay are equal to what apple, or microsoft pay - these companies hit their royalty cap almost instantly, and it's a small number compared to the amount of product they distribute (on the order of $5mm) Their has been much, much Internet debate on why Google dropped support for H.264, but, if the VP8 Codec takes off, and MPEG-LA is able to put together a patent pool, I fully expect Microsoft and Apple to support it as a first class codec in their products. I personally don't know what Google was trying to accomplish - go eyeball the list of essential patents for AVC/H.264 [1] and tell me whether you think any modern codec doesn't infringe a few hundred of them. I've worked for several of these large companies - and their mindset typically isn't that of a "Patent Troll" - they are just trying to get reasonable license fees for the IP that other companies are distributing that use those patents, and, most importantly, avoid being sued by Trolls and other low-lifes that are trying to leech $$$ from companies that are actually creating value. (Though, our General Counsel has used words somewhat more derogatory than "leech" and "low-lifes" when referring to patent trolls) [1] http://www.mpegla.com/main/programs/avc/Documents/avcCrossRefChart.pdf http://www.mpegla.com/main/programs/avc/Documents/avcCrossRe...