Nero Files Antitrust Complaint Against MPEG-LA 247
hkmwbz writes "German technology company Nero AG has filed an antitrust complaint against the MPEG-LA, the company that manages the H.264 patent pool. Nero claims that the MPEG-LA has violated the law and achieved and abused 100% market share, by, among other things, using 'independent experts' that weren't independent after all, not weeding out non-essential patents from the pool (in fact, it has grown from the original 53 to more than 1,000), and retroactively changing previously-agreed-on license terms."
Re:About time. (Score:5, Interesting)
That said:
"According to the MPEG-LA, Nero's case is nothing special. "I think we're looking it as a typical response by a company that has not abided by the terms of the license they've taken,"
Have Nero not abided by their licence deals? Or are MPEG-LA going to paint it this way to try and throw the case out as a tit-for-tat?
HOLY SHIT. (Score:3, Interesting)
It seems Nero listened to my e-mail. I told them they should be doing something about this because it would drastically affect their market otherwise. I sent that e-mail right after the original MPEG-LA brouhaha broke a couple weeks ago.
Re:MPEG_LA Isn't the devil (Score:5, Interesting)
Think about it this way, there are a number of ways to create an image, you can use ink, CRT, LCD, LED, etc. but with patents like the patent pool that MPEG-LA has, they have a patent for a "technology to display an image" with the result of being an etch-a-sketch, if I want to make a CRT, I still have to pay them money because it is "technology to display an image" despite me not even using their technology at all.
So unless I feel like paying extortion money, the technology lags behind because patents are preventing me from creating "technology to display an image" even if I want to do it in a radically different way.
Not to mention that half the time it isn't the people who would have created the etch-a-sketch technology but rather a business out in Texas or someplace which does nothing to do with display technology and they only target me once I'm making money with my CRT monitors.
Granted, this is a terrible example, but when you look at software patents and such, they are effectively cornering the market with an "etch-a-sketch" because a CRT or LCD would violate the "technology to display an image" patent.
No, probably because there's nothing to sue for. (Score:2, Interesting)
No, probably because there's nothing to sue for. It's just FUD.
Citation, please? (Score:3, Interesting)
No, I'm not being facetious. This is not a passive-aggressive way of saying you're wrong, I simply do not know.
I've seen a lot of people talking about MPEG LA, including veiled threats against people who use Theora and WEBM, but I haven't heard much from MPEG LA itself. Where exactly is this "official stance" you speak of? I'd like to read it for myself.
It's my understanding that what MPEG LA does is gather patents that apply to encoding, license them out, and pay the owners of said patents. They also indemnify any manufacturers and/or users in case any of its patents are deemed to be invalid or infringing on other patents. Now, I 100% agree that we need to do away with these patents altogether. I also 100% agree that given that they exist, we should be use patent-free software so that the whole issue would be moot.
But given that they exist and that the issue isn't moot, has MPEG LA actually threatened to go after someone who violates one of these patents, or that creating any compressed video violates their patents? I've always viewed MPEG LA not so much as the enforcement arm of evil, but more like the record keepers of evil. Hell's accountants, so to speak.
The supreme court would say MPeg LA is illegal (Score:5, Interesting)
Re:I didn't know Nero AG had time for this (Score:3, Interesting)
As with everything, YMMV though. Personally I can't stand Brasero's UI, and feel K3B is too bloated for my poor, old laptop so yeah, I use Nero Linux on it. Runs smoothly, works great and it even works as a CD ripper in a pinch.
Perhaps the Windows version is still the bloated hog that I remember from so many years ago, but the Linux version at least is incredible and well worth its money.
Re:MPEG_LA Isn't the devil (Score:5, Interesting)
That's just what Microsoft did to Spyglass (Score:4, Interesting)
When Microsoft bought the spyglass browser and turned it into IE, they agreed to pay spyglass a percentage of the sale price. Ultimately, they made the sale price $.00, wiping out spyglass's revenue stream in a classic MS double-cross.
I don't know why Spyglass never sued. IE was made a part of Windows, which was definitely not free. Sure, they made IE available as a free download, but they also included it on every Windows CD. Maybe there was a quiet suit and settlement?
Re:The supreme court would say MPeg LA is illegal (Score:4, Interesting)
It seems to me this should extend to any collective pool of IP - including patents.
Possibly, it depends on how broad the SCOTUS ruling was. The laws for trademarks and the laws for patents are very different, and each are different from the laws for copyrights.
We'll have to wait and see, but it definitely sounds like this case could be used for a strong argument in Nero's case.
Re:I didn't know Nero AG had time for this (Score:4, Interesting)
PortableApps Version [portableapps.com]
Also not affiliated with the project or the portable apps folks, just like both.
Re:That's just what Microsoft did to Spyglass (Score:4, Interesting)
They did sue. The settlement, however, was for a pathetic $8M according to this source [businessweek.com].
Comment removed (Score:4, Interesting)
Re:MPEG_LA Isn't the devil (Score:4, Interesting)
And how do they do that? With a limited monopoly on the idea, not the implementation. It's the exact opposite coverage of copyright, which grants a limited monopoly on the expression but not the idea. Trademarks is a monopoly over a name under certain conditions.
And what are the points of those?
In the US constitution, patents are secured to "promote the sciences and useful arts", trademarks are used to protect consumers. The point of patents was to prevent guilds and companies from monopolizing knowledge by providing an incentive for them to release it to the public. Trademarks are useful because they let people understand what they are getting: if I want a Nintendo Wii and the package says Nintendo Wii, I should be getting a Nintendo Wii, not http://www.blogcdn.com/www.engadgetmobile.com/media/2007/12/vii-2-white.jpg [blogcdn.com] , trademarks are useful.
What patents are today, are not what patents were when they were first designed. They were to add to the public knowledge and let people do great things with it as building blocks. Today though? We have the internet, we have communication, etc. We need to seriously consider if patents are even worth it today because they fulfill none of the constitutional requirements and don't benefit the original idea of patents.
Re:MPEG_LA Isn't the devil (Score:3, Interesting)
If the patent can be infringed without ever having seen or heard of the patented item, then I'd argue that's proof that the patent is obvious or non-novel, and thus not patentable.
Or to state it another way, if someone describes a problem to you and you can create a solution that infringes on an existing patent, then your solution does infringe on the patent as awarded, but the patent was erroneously awarded (and thus you shouldn't be able to infringe on it).
Re:About time. (Score:3, Interesting)
> The answer is FIX the system. Now.
The answer is to delete the system. Completely. End the patent system.
http://levine.sscnet.ucla.edu/general/intellectual/againstfinal.htm [ucla.edu]
Re:The supreme court would say MPeg LA is illegal (Score:5, Interesting)
The problem is the exclusive nature of the agreements signed by the various parties, where those joining the pool are barred by contract from joining another licensing pool. That is significant and may apply to the NFL as well if there were to be a team that would want to independently license its logos and mascots or team uniforms under a separate licensing agreement.
It is this exclusive arrangement that is at the heart of the MPEG-LA lawsuit by Nero. The major media companies and consumer media equipment manufacturers certainly have been engaging in acts for some time that locks potential competitors out of the market for some time.
It is good that this regime is being called on the carpet and being called exactly what it should be: A trust in the classic sense like the rail barons of a previous century were doing that caused the anti-trust legislation to be enacted in the first place. It is about bloody time!