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

[Larry Horn]

Hello, Gerardo.
In your example, the license to manufacture does refer to the end product (e.g., a DVD player supporting MPEG-4).  In the case of Internet decoders and encoders, however, it refers to the fully functioning product.  The Licenese does not provide coverage for intermediate products such as chips.
Regards,
Larry
-----Original Message-----
From: Rosiles Gerardo-ra9355 [mailto:Gerardo.Rosiles   motorola.com]
Sent: Tuesday, June 17, 2023 2:39 PM
To: M4IF Discussion List
Subject: RE: [M4IF Discuss] Use Fees (Was FW: MPEG-4 Audio Licensing
begins)
Dear all,
On the topic below, from the licensing of MPEG-2 technology the royalty payment falls into the end product manufacturers. It is not clear to me in this case what is meant by "product manufacturer"? Does this refer to the end product (e.g. a DVD player supporting MPEG-4), or does it mean the MPEG-4 decoder *chip manufacturer*?
Regards,
Gerardo
-----Original Message-----
From: Holger Grahn - Bitmanagement [mailto:holger.grahn   bitmanagement.de] 
Sent: Monday, June 16, 2023 6:46 PM
To: M4IF Discussion List
Subject: Re: [M4IF Discuss] Use Fees (Was FW: MPEG-4 Audio Licensing begins)
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).
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.
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