[MPEGIF Discuss] royalties for distibuting a player

[Tim Olsen]

Thanks Larry.  I think you've answered my questions adequately.
-Tim
On Wed, 10 Nov 2023 07:03:44 -0700, Larry Horn <lhorn mpegla.com> wrote:
> Hi, Tim.
> 
> I have seen the discussion thread. If you have questions about the
> MPEG-4 Visual Patent Portfolio or MPEG-4 Systems Patent Portfolio
> License, please get in touch directly with Dean Skandalis who is copied
> on this email or provide Dean with a way to reach you.
> 
> As you apparently are aware, the MPEG-4 Visual Patent Portfolio License
> offered by MPEG LA includes annual minimum thresholds of 50,000 units
> (per legal entity but no more than one in an affiliated group) for the
> manufacture and sale of MPEG-4 Visual decoders before royalties are
> payable.  Therefore, to the extent you distribute 50,000 or fewer MPEG-4
> video decoders in a year, no royalty would be payable for the
> manufacture and sale of such decoders under the MPEG-4 Visual Patent
> Portfolio License.  After the first 50,000 units each year, the royalty
> is $0.25 per unit for the manufacture and sale of MPEG-4 Visual Decoders
> (up to an annual maximum cap of $1M per legal entity).
> 
> Under the MPEG-4 Systems Patent Portfolio License, as you also seem to
> be aware, royalties are payable beginning with the first product which
> uses MPEG-4 Systems; there are no thresholds.  Therefore, if your player
> can decode MP4 File Format data files as you note, it would be subject
> to a royalty of $0.15 per unit under the MPEG-4 Systems Patent Portfolio
> License (up to an annual maximum cap of $100,000 per legal entity).
> 
> In the case of both the MPEG-4 Visual License and the MPEG-4 Systems
> License, no distinction is made for products that are offered without
> charge - they are treated the same as any other products which use the
> technology.
> 
> Meanwhile, for questions about licensing AAC, I suggest you contact Via
> Licensing for more information.
> 
> I hope this is helpful, but Dean Skandalis will be glad to address
> additional questions you may have.
> 
> Best regards,
> Larry Horn
> Vice President, Licensing
> 
> 
> 
> -----Original Message-----
> From: discuss-bounces lists.mpegif.org
> [mailto:discuss-bounces lists.mpegif.org] On Behalf Of Tim Olsen
> Sent: Monday, November 08, 2023 11:40 PM
> To: Holger Grahn - Bitmanagement
> Cc: discuss lists.mpegif.org
> Subject: Re: [MPEGIF Discuss] royalties for distibuting a player
> 
> Both of which have a 50,000 unit floor.  I guess what I'm really
> asking is, am I using any MPEG-4 Systems technology if I restrict the
> player to using Xvid and AAC inside the AVI container?
> 
> It appears to me that the MPEG-4 Systems license is the only one of
> the three ( Visual and Audio being the other two) that does not have
> 50,000 unit floor.  That's why I'm trying to avoid using that
> technology.
> 
> thanks,
> Tim
> 
> On Tue, 9 Nov 2023 01:25:51 +0100, Holger Grahn - Bitmanagement
> <holger.grahn bitmanagement.de> wrote:
> >
> > Even if you use the AVI container, your would  still need MPEG-4 video
> > decoding and Dolby/MPEG licence cost for AAC depending on channel
> count.
> >
> > Greetings
> > Holger
> >
> >
> >
> >
> > ----- Original Message -----
> > From: "Tim Olsen" <tolsen718 gmail.com>
> > To: <Discuss lists.mpegif.org>
> > Sent: Monday, November 08, 2023 8:37 PM
> > Subject: [MPEGIF Discuss] royalties for distibuting a player
> >
> > > 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
> >
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