[M4IF Discuss] 3GPP system license fees

[Robert Bleidt]

A very good question Ben! If we talk about just the media stream and not 
the mobile network, the encoder and decoder manufacturers have to pay for 
the right to use patents essential to each codec. So if you were to 
consider an encoder that sends a Simple Profile video stream and an AAC 
audio stream, the royalty costs would be the same. If your encoder or 
decoder includes a CELP or GSM-AMR encoder, its manufacturer would have to 
pay royalties on those as well. Most (in non-CDMA countries) handsets, of 
course, will already include a royalty for GSM-AMR to carry the speech of a 
normal call.
As far as I know, the MPEG-4 Visual and System licenses administered by 
MPEG-LA are the only ones to impose a royalty on length of use.
While the costs of MPEG-4 royalties are published (see 
http://www.streamcrest.com/MPEG-4%20License%20Proposals.pdf [needs some 
minor updates], http://www.mpegla.com/mpeg4v/m4vweb.ppt, 
http://www.vialicensing.com/) the costs of a GSM-AMR license are very 
private. I have asked people who have to know what they are, and they 
either say they don't know or can't tell me.
If one looks beyond the video and audio level, the royalty situation 
quickly gets very interesting. I have read casual quotes pegging the 
royalty costs as being 10-20% of the manufacturing cost of a handset. I 
think about 1/3 of Qualcomm's revenues come from IPR as opposed to chips or 
products.
If anyone knows more or different - I would welcome the feedback.
At 06:43 PM 6/16/2003 -0700, you wrote:
>Folks,
>
>     Are there any additional license fees to use 3GPP over the standard
>Systems license fees that, say, an ISMA product would have to pay?
>
>Ben Waggoner <http://www.benwaggoner.com>
>Compressed Video Consulting, Training, and Encoding
>
>My Book:            <http://www.benwaggoner.com/books.htm>
>Cleaner e-book:     <http://www.cmpbooks.com/cleaner>
>
>Compression Classes at Stanford  June 30-July 4 and Aug 11-15
><http://www.digitalmediaacademy.org/compression.html>
>
>Compression Class in New York City, July 13
><http://www.manhattanvideoworkshop.com/courses.html>
>
>
>
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Robert Bleidt   - Streamcrest Associates - www.streamcrest.com