2 AVR32722
32097A-AVR32-01/08

4 MPEG-2 / MPEG-4 Video
Patents covering MPEG-4/MPEG-2 video are claimed by many companies. The MPEG Licensing Authority (http://www.mpegla.com) licenses patents required for MPEG-4 Part 2 Visual and MPEG-2 from a wide range of companies. New licenses for MPEG-4 System patents are under development and no new licenses are being offered while holders of its old MPEG-4 Systems license are still covered under the terms of that license for the patents listed.
The MPEG Licensing Authority has two licensing models for MPEG-2/MPEG-4, a “system” license and “codec” license. The system license applies for devices which handle MPEG-2/MPEG-4 but do not have a licensed video encoder/decoder. This is the case when the device only handles MPEG data streams.
For MPEG-2/MPEG-4 video decoding another license is needed.

4.1 MPEG-2 (2008년 기준)
The fee for a MPEG-2 System license is US$ 0.50 for each product.
Following royalty categories are available for a MPEG-2 “codec” license:
• Decoders: $2.50 per unit
• Encoders: $2.50 per unit
• Distribution Encoders: $2.50 x L per unit, where L is the number of programs encoded in parallel

Consumer Products (Encode & Decode): $2.50 per unit
• Intermediate Products: License to make and sell (no royalty), end user product bears royalty

4.2 MPEG-4 Visual (2008년 기준)
Currently no information about a MPEG-4 system license is available. For further details please contact the MPEG Licensing Authority.
Following royalty categories are available for a MPEG-4 “codec” license:
• Decoders sold to end users and/or as fully functioning for PCs
o 0 - 50,000 decoders/year = no royalty (available to one legal entity in an affiliated group)
o US $0.25* per decoder after first 50,000 decoders/year
o Annual cap per Legal Entity: $1,000,000
• Encoders sold to end users and/or as fully functioning for PCs
o 0 - 50,000 encoders/year = no royalty (available to one legal entity in an affiliated group)
o US $0.25* per encoder after first 50,000 encoders/year
o Annual cap per Legal Entity: $1,000,000
• Enterprise cap - $3 million per year

6 References
[1] Information about various video/audio formats: http://www.wikipedia.org
[2] MP3 licensing from Thomson: http://www.mp3licensing.com
[3] Atmel as MP3 licensee: http://www.mp3licensing.com/licensees/index.asp
[4] MPEG-2 MPEG-4 Audio (AAC) licensing: http://www.vialicensing.com
[5] Windows Media licensing:
http://www.microsoft.com/windows/windowsmedia/licensing/default.mspx
[6] Windows Media licensing fees and royalties: http://www.microsoft.com/windows/windowsmedia/licensing/licensing.aspx
[7] Atmel contact email: avr32@atmel.com
[8] Sisvel (Audio MPEG) MP3 licensing: http://www.audiompeg.com


New MPEG LA MPEG-2 License Agreement Offers Extended Coverage at Reduced Royalty Rates

DENVER--(BUSINESS WIRE)--MPEG LA, LLC, world leader in alternative one-stop patent licenses, today announced the offering of a new MPEG-2 Patent Portfolio License that will provide uninterrupted coverage for the life of the MPEG-2 essential patents at reduced royalty rates beginning January 1, 2010.

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective”

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective,” said Larry Horn, MPEG LA President and CEO.

From the later of January 1, 2010 or the execution date of the new License, the royalty rate for each MPEG-2 Decoding, Encoding and Consumer Product (as defined in the new License) will be US $2.00, down from the current $2.50, and royalties for MPEG-2 Packaged Medium (e.g., DVD Video Discs) will be reduced to US$0.0176 during 2010, and US$0.016 after 2010.

For more information about the new MPEG-2 Patent Portfolio License or to request a copy of the License, please visit http://www.mpegla.com/m2/ or email Licensing@mpegla.com.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent holders in a single transaction as an alternative to negotiating separate licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. Among MPEG LA’s licenses is a patent pool for MPEG-2 digital video compression that has helped produce the most widely employed standard in consumer electronics history. The MPEG-2 Patent Portfolio License, which includes more than 870 MPEG-2 essential patents in 57 countries, has more than 1,600 licensees accounting for most MPEG-2 products including set-top boxes, DVD players, digital television sets, personal computers and DVD Video Discs in the current world market. MPEG LA is an independent licensing administrator; it is not related to any standards agency and is not an affiliate of any patent holder. For more information, please refer to http://www.mpegla.com.

Contacts

MPEG LA, LLC
Tom O’Reilly, 860-620-0642
Fax: 301-986-8575
toreilly@mpegla.com

Permalink: http://www.businesswire.com/news/home/20090705005026/en/MPEG-LA-MPEG-2-License-Agreement-Offers-Extended

http://www.businesswire.com/news/home/20090705005026/en/MPEG-LA-MPEG-2-License-Agreement-Offers-Extended

 MPEG LA, LLC

MPEG LA’s AVC License Will Not Charge Royalties for Internet Video That Is Free to End Users Through Life of License

DENVER--(BUSINESS WIRE)--MPEG LA announced today that its AVC Patent Portfolio License will continue not to charge royalties for Internet Video that is free to end users (known as “Internet Broadcast AVC Video”) during the entire life of this License. MPEG LA previously announced it would not charge royalties for such video through December 31, 2015 (see http://www.mpegla.com/Lists/MPEG%20LA%20News%20List/Attachments/226/n-10-02-02.pdf), and today’s announcement makes clear that royalties will continue not to be charged for such video beyond that time. Products and services other than Internet Broadcast AVC Video continue to be royalty-bearing.

MPEG LA's AVC Patent Portfolio License provides access to essential patent rights for the AVC/H.264 (MPEG-4 Part 10) digital video coding standard. In addition to Internet Broadcast AVC Video, MPEG LA’s AVC Patent Portfolio License provides coverage for devices that decode and encode AVC video, AVC video sold to end users for a fee on a title or subscription basis and free television video services. AVC video is used in set-top boxes, media player and other personal computer software, mobile devices including telephones and mobile television receivers, Blu-ray Disc™ players and recorders, Blu-ray video optical discs, game machines, personal media player devices and still and video cameras.

For more information about MPEG LA’s AVC License or to request a copy of the License, please visit http://www.mpegla.com/main/programs/AVC/Pages/Intro.aspx.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent owners in a single transaction as an alternative to negotiating individual licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. By balancing patent users’ interest in reasonable access with patent owners’ interest in reasonable return, MPEG LA creates the opportunity for adoption of new technologies and fuels innovation. MPEG LA’s initial licensing program for MPEG-2 digital video compression helped produce the most widely employed standard in consumer electronics history, and the MPEG LA® Licensing Model has become the template for addressing other technologies. Today MPEG LA manages licensing programs consisting of essential patents in 70 countries. For more information, please refer to http://www.mpegla.com.

Contacts

MPEG LA, LLC
Tom O’Reilly
Tel: 303-200-1710
Fax: 301-986-8575
toreilly@mpegla.com

Permalink: http://www.businesswire.com/news/home/20100825006629/en/MPEG-LA%E2%80%99s-AVC-License-Charge-Royalties-Internet

http://www.businesswire.com/news/home/20100825006629/en
 
 

한국 MPEG LA컨텍포인트 : Korea-web@mpegla.com




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32097A-AVR32-01/08

 

3 MPEG-2 / MPEG-4 Audio
Advanced Audio Coding (AAC) is a standardized, lossy compression and encoding scheme for digital audio. It is specified both as Part 7 of the MPEG-2 standard, and Part 3 of the MPEG-4 standard. As such, it can be referred to as MPEG-2 Part 7 and MPEG-4 Part 3 depending on its implementation. However it is most often referred to as MPEG-4 AAC, or AAC for short [1].
MPEG-2 and MPEG-4 Audio (AAC) patents are licensed by Via Licensing Corporation. Please visit http://www.vialicensing.com for more information. Various patents from different companies or institutions are covered by these licenses but still others do claim to have relevant patents that are needed (e.g. Thomson states that it has relevant patents that are not included [3]). Via offers any company to submit their patent that covers a relevant part of a technology for an evaluation. If the patent meets the requirements it can be added to the patent pool at no further costs for the licensees. It is
No licenses or payments are required to be able to stream or distribute content in AAC format. This reason alone makes AAC a much more attractive format to distribute content than MP3, particularly for streaming content (such as Internet radio).
However, a patent license is needed by manufacturers or developers of end user encoder and/or decoder products. Under this category fall, according to Via licensing, all end-user products, when sold directly or through distribution to end users. Licensee's products that are not end user products are not covered by the license and would require that the party incorporating such a component or implementation into its end user product obtain its own license.

3.1 MPEG-2 AAC License
The royalties for a license of the MPEG-2 AAC pool are related to the number of units per year and decoder/encoder channels. A channel refers to an audio output channel. For example stereo is a two-channel implementation (left and right), while a surround sound system might have five or more audio channels. Special licensing prices for cellular phones, PC software are also available upon request. Table 3-1 shows an excerpt of standard royalties for MPEG-2 AAC.

Table 3-1. MPEG-2 AAC license royalties excerpt

3.2 MPEG-4 AAC License
The royalties for a license of the MPEG-4 AAC pool are, just like the MPEG-2 version, related to the number of units per year and decoder/encoder channels. Table 3-2 shows an excerpt of standard royalties for MPEG-4 AAC. For special licensing prices that apply for cellular phones or PC software please contact Via licensing.
Table 3-2. MPEG-4 AAC license royalties excerpt

6 References
[1] Information about various video/audio formats: http://www.wikipedia.org
[2] MP3 licensing from Thomson: http://www.mp3licensing.com
[3] Atmel as MP3 licensee: http://www.mp3licensing.com/licensees/index.asp
[4] MPEG-2 MPEG-4 Audio (AAC) licensing: http://www.vialicensing.com
[5] Windows Media licensing:
http://www.microsoft.com/windows/windowsmedia/licensing/default.mspx
[6] Windows Media licensing fees and royalties: http://www.microsoft.com/windows/windowsmedia/licensing/licensing.aspx
[7] Atmel contact email: avr32@atmel.com
[8] Sisvel (Audio MPEG) MP3 licensing: http://www.audiompeg.com

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2 AVR32722
32097A-AVR32-01/08


2 MP3
MP3, short for MPEG-1/MPEG-2 Layer 3, is a format for storing digital audio. It uses an advanced type of audio compression, which reduces the file size with little reduction in audio quality. MP3 is used in software applications, digital audio players, home stereo devices and music distribution over the Internet, but is also used for other purposes such as real-time digital audio transmissions over ISDN.
The companies, Thomson, Sisvel (and its U.S. subsidiary Audio MPEG; http://www.audiompeg.com) offer a patent pool of relevant MP3 patents related to decoder and encoder.
Thomson licenses Fraunhofer MP3 and MP3 Surround software as well as Fraunhofer MP3 patents. The contact website for the licensing of MP3 through Thomson is http://www.mp3licensing.com. The following chapters describe different license models from Thomson.

2.1 MP3 hardware decoder/encoder licensing
Atmel has a license of MP3 for its ICs/DSPs from Thomson. This means that a customer does not have to license its product when he uses an Atmel IC with an incorporated MP3 decoder/encoder [3].


2.2 MP3 software decoder/encoder
For hardware that uses software MP3 decoder/encoder a license is needed. Important is that this license does not include the right to distribute, broadcast and/or stream MP3/MP3Pro encoded data. These rights are covered by the license described in chapter 2.3.
The royalties for MP3 decoder/encoder software are staged according to the used technology (MP3 or MP3Pro) and the use of decoding/encoding or just decoding. In any case an annual minimum royalty is payable upon signature and each following year. This minimum royalty is creditable against annual royalties and is about 15,000 US$. Table 2-1 shows the royalties for a license of the MP3 patents only. This model is most likely for a customer that uses e.g. an AVR®32 to decode/encode MP3 data because the ported codec library is available from Atmel (contact Atmel for further details: avr32@atmel.com).
Table 2-1 MP3 patent-only license (third party MP3 software)


2.3 Electronic music distribution/broadcasting/streaming
The current licensing scheme of MP3 makes it necessary to have a license to be allowed to stream or distribute content in MP3 if the use is commercial (e.g. revenue-generating). This makes the MPEG-2 and MPEG-4 audio formats (AAC), in addition to their superior compression technology, more attractive for broadcasting systems and because of that also for receiving systems.

According to Thomson no license is needed for private, non-commercial activities (e.g. home-entertainment, receiving broadcasts and creating a personal music library), not generating revenue or other consideration of any kind or for entities with associated annual gross revenue less than US$ 100,000.
The royalties for MP3 music distribution/broadcasting/streaming is related to the revenue. These are 3.0% for MP3Pro and 2.0% for MP3. Also a minimum annual royalty of US$ 3000 for MP3Pro and US$ 2000 for MP3 that is creditable against annual royalties exists.

6 References
[1] Information about various video/audio formats: http://www.wikipedia.org
[2] MP3 licensing from Thomson: http://www.mp3licensing.com
[3] Atmel as MP3 licensee: http://www.mp3licensing.com/licensees/index.asp
[4] MPEG-2 MPEG-4 Audio (AAC) licensing: http://www.vialicensing.com
[5] Windows Media licensing:
http://www.microsoft.com/windows/windowsmedia/licensing/default.mspx
[6] Windows Media licensing fees and royalties: http://www.microsoft.com/windows/windowsmedia/licensing/licensing.aspx
[7] Atmel contact email: avr32@atmel.com
[8] Sisvel (Audio MPEG) MP3 licensing: http://www.audiompeg.com



 
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