[M4IF Discuss] Use Fees (Was FW: MPEG-4 Audio Licensing begins)

[Holger Grahn - Bitmanagement]

Thanks Larry,
> Under the MPEG-4 Systems License the royalties for the right to make, sell
and use MPEG-4 >Systems data decoders and MPEG-4 Systems data encoders are
included (with one exception) in the >royalties paid by the product
manufacturers ($0.15 per decoder subject to a $100,000 annual cap per >legal
entity and $0.25 per encoder subject to a $100,000 annual cap per legal
entity).
But could you clarify an existing market example:
Taking an actual existing OpenSource project like mpeg4ip:
They are making 'MPEG-4 Systems data decoders and MPEG-4 Systems data
encoders'
freely available on the Internet.
The are not selling it, it is not clear who is the 'product manufacturers',
they are not tracking how many
'encoder subjects' are compiled or used from the source code.
How would MPEG-LA charge them or took action?
If the term 'product manufacturers' refers only to manufacturers offering
physical manifestations
of MPEG-4 capable devices like an MPEG-4 AAC Portable Music Player, an
MPEG-4 Personal
Video Player / DVD player or an Set-Top box this would be an different and
more practical approach.
I assume that manufacturers of such devices are bigger entities and have no
problems paying the $100,000  annual cap to get rid of the book keeping
issues.
My question is related to reducing the risk for Open Source projects or
early adopter software  and content companies investing into MPEG-4
developments and content.
To my memory MP3 took off, when the intial very strict licence conditions
where relaxed and shareware/software based MP3 players where no longer
subject of royalties.
Best Regards
Holger