[M4IF Discuss] Questions about the hourly usage fee for MPEG4

[Ken Goldsholl]

Under the proposed licensing scheme, there won't be any hourly usage fees
for decoding MPEG4 content stored on DVD.  So if an MPEG4 movie is first
downloaded to a storage device, and then viewed some time after the
download, just as a user would a DVD, would there be an hourly usage fee?
How would this be monitored and controlled?  Who would be responsible for
making sure the consumer paid the fee? Why would it be treated any
differently than a DVD?  If a data file is being transferred from one disk
drive to another, yet not viewed, why would any patents be infringed?  The
intellectual property is only being utilized when the file is decoded.
Transferring files from one server to another does not involve decoding, so
why would the transport of a file incur an hourly usage fee?
So are the IP holders who are proposing an hourly scheme implying that the
MPEG4 technology is the only technology used in creating content,
transporting it efficiently to the viewer, and then displaying it, that is
worthy of an hourly usage fee?  Or are they expecting that other technology
asset owners will implement the same scheme, whereby you don't actually own
the right to use any technology-based products that you buy?  If this trend
catches on, will I have to pay for each minute my flat panel display is on?
what about Intel?  Will they want hourly fees for using the computer (maybe
they'll charge by the instructions, as it could be sitting idle alot)?
Ken Goldsholl