[MPEGIF Discuss] royalties for distibuting a player

[Tim Olsen]

Hello.
Am I correct in thinking that if I were to distribute a free MPEG-4
player with less than 50,000 downloads per year and the file format it
read was AVI, I would not have to pay any royalties?  To make it more
concrete, lets say I was using the Xvid and AAC codecs.
Would I be subject to an MPEG Systems royalty if I were to use the MP4
file format?
does the 50,000 downloads still matter if the player I'm distributing is free?
thanks for your help.
-Tim