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Apple Businesses

Apple Delays QuickTime 6 Over Proposed MPEG-4 Licenses 245

znu writes: "Apple announced at the QuickTime Live! conference today that there's a public preview of QuickTime 6 with full MPEG-4 support ready to ship, but the terms of the proposed MPEG-4 license are holding it back. For those who haven't been following this, MPEG wants $0.25 per encoder/decoder for MPEG-4, up to $2 million per company per year. Apple is fine with that. But MPEG also wants content distributers to pony up $0.02/hour for any content that's distributed for profit. Apple feels that determining just what is "for profit" will be problematic, and that this pricing will seriously inhibit MPEG-4 adoption. You are encouraged to complain to MPEG LA about this situation."
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Apple Delays QuickTime 6 Over Proposed MPEG-4 Licenses

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  • hmm (Score:5, Insightful)

    by MathJMendl ( 144298 ) on Wednesday February 13, 2002 @03:41AM (#2998948) Homepage
    What we really need is a nice, free, high quality and open source standard. Then, anyone can use it without paying the license fees, and it will be able to run on any platform. Whereas music files have converged to mainly MP3 and OGG Vorbis files, videos are heavily divided between MPEG, QuickTime, DiVX & AVI, RM, and ASF. It is really annoying to use so many different players to play simple videos, I use at least four different ones regularly. Plus, I haven't found anything that can play RM except for RealPlayer, which is unfortunate since some of them have not been displaying correctly on my computer.
  • by bani ( 467531 ) on Wednesday February 13, 2002 @03:55AM (#2998973)
    ... and contribute to work on vorbis/tarkin instead ...
  • by FrostyWheaton ( 263146 ) <mark.frostNO@SPAMgmail.com> on Wednesday February 13, 2002 @03:58AM (#2998983) Homepage
    If the internet has taught anyone anything over the last 20+ years it is that closed standards, or standards that require licencing do not work . Standards are developed (or at least should be) as means to an end. Packet switching is a means to send data. Data Comression is a means to transfer data more effectively. HTML is a means to simplify and "standardize" web content.

    Companies that have "crate patented standards and get rich off the licencing" as part of their buisiness plan should be shunned by those who are seeking to make money by providing entertainment or information.

    I personally a mystified that things like this MPEG insanity can and have survived. Open standards have reigned supreme on the internet, and nearly everywhere else, but somehow these proprietary video compression algorithms live on.

    I don't pretend to be an expert on video codec's and the like, but I would like to believe that some sane individuals could develop an open video compression system and stop all of this idiocy
  • My utopia (Score:5, Insightful)

    by The Rev ( 18253 ) on Wednesday February 13, 2002 @04:16AM (#2999028) Homepage Journal
    I just wrote this letter to Baryn Futa [mailto] the Chief Executive Office of MPAG LA [mpegla.com].

    Dear Sirs,

    I hear today that Apple is withholding it's beta release of Quicktime version 6 because of an issue that they see with your licensing of MPEG-4 technology.

    I am personally extremely keen to see MPEG-4 make it into the mainstream.

    I own a digital camcorder and with enough public support for MPEG-4 I look forward to the day when MPEG-4 codecs make it into domestic DVD players. Then I can send my friends & family MPEG-4 copies of my home videos on CD's (not DVDs though; well, not yet at any rate) that they can view in their own DVD players from the comfort of their couches. :-)

    I also happen to be a software engineer who has worked with Philips on and using MPEG-1 technology (quite a while ago I admit) and I am continually impressed with the progress and quality of video compression technologies people such as yourselves are developing.

    Apple appears (to me at least) to be the most public proponent of MPEG-4 and Microsoft have managed to get their codecs into some domestic DVD players. A situation that can only improve. Bringing MPEG-4 to the domestic DVD player market would open up an entirely new revenue stream for your licenses and I think that assisting Apple in sorting out their licensing issues will further your journey toward a utopia where MPEG-4 playback is installed on all domestic video playback hardware.

    Now I suggest that we all write nice letters to Mr. Futa and press our individual opinions.

  • by TheMCP ( 121589 ) on Wednesday February 13, 2002 @04:29AM (#2999044) Homepage
    how long can Apple keep a leash on a potential money-maker?
    I think what you're not getting is that Apple does not view this as a potential money-maker: they're recognizing that the licensing model is sufficiently flawed that to use it would do harm to their business goals.

    So, if you want to know how long Apple can afford not to release the product, the answer is "forever": they can go with some other codec and rework the product. Then they can advertise that *their* system is free for use, unlike everyone else's.
  • Who should pay (Score:5, Insightful)

    by Jah-Wren Ryel ( 80510 ) on Wednesday February 13, 2002 @04:48AM (#2999067)
    How about charging only members of the MPAA? If you are part of the MPAA you pay the per unit fee. It would serve them right - they all ultimately want pay-per-play of their IP, seems fair that they should have to pay the same way when they use other people's IP.
  • Re:hmm (Score:2, Insightful)

    by drik00 ( 526104 ) on Wednesday February 13, 2002 @04:51AM (#2999069) Homepage
    What's really interesting to look at is how the commercial companies and individual's handle these things.

    Most music lovers are going to migrate to MP3, some to OGG for their personal use, and if you're talking video, everyone has started using divx for ease of use, and b/c everyone else is using it ;) hell, we're individuals and its easier to use something that everyone else uses, too

    Commercial companies are the problem here. If you go to a commercial site, they could be using any one of the formats for video, depending on what all-knowing management decided would be the best idea.

    If you ask me, there's the rub.

  • by 2b|!2b ( 140353 ) on Wednesday February 13, 2002 @04:51AM (#2999070)
    Apple doesn't have a problem with paying $0.25 per decoder that they ship. It's not much to pay considering the enormous amount of cash that's been sunk into developing the technologies in MPEG4.

    Apple has invested a large amount of money in the MPEG4 format [apple.com]. They're not named in the license [apple.com] that we're all talking about, so I assume that they're not receiving any royalties. This would piss me off, but it's not what's annoying them.

    The problem that they have is that the $0.02 (I know... an ironic amount...) per hour that the user of an encoder has to pay is a barrier to the acceptance of their product.

    Apple want to be the (consumer) media platform of choice. They have no illusions of making money from producers [apple.com].
  • by Jace of Fuse! ( 72042 ) on Wednesday February 13, 2002 @05:26AM (#2999111) Homepage
    Open standards have reigned supreme on the internet, and nearly everywhere else, but somehow these proprietary video compression algorithms live on.

    Sadly, I can think of more contradictions to that statement than examples of it.

    We are still using GIF, after all.

    http://images.slashdot.org/title.gif {- See?

    Oh, and there are a whole lot more more people using MP3 than Ogg.

    Oh, and uh - Isn't Flash a pretty darn closed standard?

    What about that Windows thing? I think it has a pretty wide installed user base. Doesn't it? Not to mention Internet Explorer.

    Sorry, dude. I think your post was a bit off the mark. It's not that I don't agree that it would be nice if stuff was all free and opened and life was good and all, but uh -- well. It's not. Sucks plenty.
  • by Anonymous Coward on Wednesday February 13, 2002 @08:42AM (#2999358)
    I dont know if I agree with the patent but it seems pretty moronic to license the encoder AND the decoder.

    It seems with any format(audio,video,file compression) you want it out there and popular. Then only license the encoder, and the decoder is no charge. People will use the format a lot more, imho.

  • A Microsoft Ploy ? (Score:3, Insightful)

    by mbone ( 558574 ) on Wednesday February 13, 2002 @08:54AM (#2999374)
    Apple is not in this alone. Apple is a founding member in the Internet Streaming Media Alliance, or ISMA [isma.tv], which is standardizing MPEG-4 for streaming. At the Fourth ISMA forum last week, the move by MPEG-LA to apply a per stream license fee was seen as pretty brain-dead.

    MPEG-4 is being rolled out for set-top boxes for Cable Companies. The MPEG-LA license fee would add a charge of almost $ 15.00 per box per month to your cable bill. This would just about double my cable bill. This will kill MPEG-4 if it is not changed.

    The speculation is that this is Microsoft (a member of the license pool) trying to squelch competition, without leaving any fingerprints.
  • Re:The Irony (Score:5, Insightful)

    by Sycraft-fu ( 314770 ) on Wednesday February 13, 2002 @08:55AM (#2999378)
    It's a real problem for someone like Apple. Think of all the free content they offer on their site, and thigns like MacWorld that they stream. All free right? Well, yes in that it doesn't cost the person viewing anything but it's not necessiarly non-profit. Apple is for profit, like all companies and these things are bussiness related. The trailers and so on are made to encourage people to download and perhaps buy ther player. The reason for increasing player downloads is to attempt to encourage more content producers to use QT format, and so in a way IS a profit related activity. Same with MacWorld. They are pimping all their new products for the world to see, trying to generate intrest. Again, somewhat profit related.

    A grey area, for certian, but one you can see why they'd want to avoid. I'm sure given how greedy many people seem to be getting these days that the MPEG group would try to slap them with a bill for all that content and they'd have to waste money fighting and perhaps paying it.
  • by Anonymous Coward on Wednesday February 13, 2002 @10:08AM (#2999595)
    Companies have to get it through their thick skulls that to achieve infrastructure-level ubiquity in the computer market your product either has to be free (beer) or licensed via a very simple, flat-rate scheme. The MPEG-4 license plan is destined to drive away companies, to everyone's detriment.
  • by j7953 ( 457666 ) on Wednesday February 13, 2002 @10:21AM (#2999670)
    We are still using GIF, after all.

    At the time at which GIF became standard, the licensing issues were not known, so it appeared to be an open standard.

    Oh, and there are a whole lot more more people using MP3 than Ogg.

    MP3 might be a closed standard, but at least no license fees are to be paid for distributing players (as far as I know, they're only required for encoders) or content.

    Also note that, similar to GIF, when MP3 took off, encoders were developed without paying license fees as well. The license fees were not requested before MP3 already was popular, and even then, there was a lot of discussion about whether this would stop MP3. But there was no free alternative ready at that time.

    Oh, and uh - Isn't Flash a pretty darn closed standard?

    No, it's not. It's documented similar to PDF. Besides, I wouldn't exactly call Flash an internet standard, it's more a marketing and salespeople standard ;-)

    What about that Windows thing? I think it has a pretty wide installed user base. Doesn't it? Not to mention Internet Explorer.

    The original poster didn't claim that all implementations of the standards were free, but that the standards themselves were. IP, HTTP, HTML etc. are all open standards. The fact that they're implemented by proprietary products like Windows or Internet Explorer doesn't make the standards less open.

  • by MoneyT ( 548795 ) on Wednesday February 13, 2002 @06:22PM (#3003408) Journal
    At least Quicktime is useable. I still can't stand the fact that I can't save WMP files as anything else or export the files.

    Personaly, Quicktime is highly efficient. True if you want to watch MPEGS full screen, you need to register, but as you so pointed out, there are hacks availible.
  • Executive Summary (Score:3, Insightful)

    by sfgoth ( 102423 ) on Wednesday February 13, 2002 @08:10PM (#3004087) Homepage Journal
    Wow, people are all over the map on this one.

    Simply put:

    MPEG-LA is a company that represents the patent holders of technolgy used by all the parts of a multimedia standard known as MPEG-4.

    MPEG-LA says that if you want to sell a codec that infringes on any of their _extensive_ patents, you need to pay $0.25 per copy sold, up to $1M per year.

    MPEG-LA says that if you want to USE a codec covered by their patents, you have to pay $0.02/hr per stream.

    Apple refuses to make QuickTime 6 available until the usage fee is removed.

    IMHO:
    This is awesome, Apple is standing up for the rights of the individual to create multimedia content and publish it royalty free. Sure, they're saving themselves some $ since they stream video too. But consumers will be the ones paying that $0.02/hr if it sticks, via their Digital Cable subscription, their DirectTV subscription, watching streaming movies on the net, etc...

    The $0.25 per codec sold is fair. Many of you might not think the underlying patents are fair, but that's a different issue. If the patents are fair, then it seems fair to charge $0.25 a copy for any other products sold that infringe on the patents.

    -pmb

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