Monday, Aug 30, 2010    Text size: 

According to MPEG LA, its AVC Patent Portfolio License provides rights for the AVC/H.264 (MPEG-4 Part 10) digital video coding standard, used on off- and online video that is "sold to end users for a fee on a title or subscription basis and free television video services," among other applications.

The technology is widely used across a broad range of media devices, including set-top boxes, media players, Smartphones, Blu-ray systems, and still and video cameras.

Previously MPEG LA set a December 31, 2015 deadline after which royalties would incur for video using H.264 technology. Now the royalty-free status will be perpetual for the life of the license for Internet Broadcast AVC Video that is free to end users.

"By balancing patent users' interest in reasonable access with patent owners' interest in reasonable return, MPEG LA creates the opportunity for adoption of new technologies and fuels innovation," stated a group spokesperson.

According to some observers, Mozilla and others saw the royalty requirements as a major obstacle to the technology's adoption. Now eliminated as a concern, the Firefox web browser and other platforms may soon enjoy the full benefits of H.264 video.

While the licensing clarification means that H.264 paysite videos and other premium priced video offerings will still be liable for royalty payments, free tube sites and others will get to skip out on paying the bill. Many operators in the adult entertainment industry, who will face another competitive disadvantage in comparison to free tube sites, will not regard this situation favorably.

Tube and other sites that provide a mix of free and paid video content may also face huge complications in recordkeeping trying to keep it all straight. For example, YouTube is now offering an increasing array of pay-per-view videos, a move echoed by a growing number of adult tube sites. Will these premium clips need a different format just to avoid licensing fees or will operators pay up and pass the cost along to consumers? The debate is likely to fuel the growth of Open Source video alternatives.

More information about MPEG LA's AVC License is available from its website.