Thomson Announces Royalties For MP3 Streaming 150
Michael Smith points to an article at techreview.com in which "we read about Thomson Multimedia announcing royalties for mp3 streaming, finally. 2% of ALL revenues related to streaming, with a $2000 minimum. A compelling reason to move to Ogg Vorbis for those who have been holding out?" RMS has been pointing out that MP3 is hampered by patents for a long time now; the proof-bearing pudding is on the way. Same Thomson that wants smart cards everywhere; the pay-for-play view of the world is at least consistent there.
Re:Other MP3 Streams (Score:1)
In truth, the biggest drawback is that my DVD player and my MP3 player doesn't play OGGs. So why bother converting over?
Re:Ogg Vorbis? More like WMA... (Score:1)
/me thinks back to when Justin was still in college and winamp was still (though Justin will deny it to keep AOL from being sued) a wrapper for AMP. Back then everything you said could have been applied to MP3. I mean come on MPEG 2 Layer 3 Audio WTF is that if not geeky sounding!
Re:One thing to keep in mind.. (Score:1)
OTOH, it *is* a bitstream format, and one of the bitstreams it can contain is the Vorbis format, which is a music format.
Oh boo hoo. Stop being so damn PC.
Re:Dumb Ideas Hall of Fame? (Score:2)
Re:Ogg Vorbis? Umm...Okay! (Score:1)
Or, since there are a number of music players that can play both Ogg and MP3, you could (gasp) not convert all that old music (heathen!), but rip to Ogg whenever you rip new music. Why exactly do they all have to be the same?
If you're streaming, you're probably re-encoding to a lower, streamable bitrate anyways (at least, I do, my on-disk MP3s are usually 192kbit VBR or higher, but my radio streams [scenespot.org] are 24kbit and 56kbit), so it doesn't matter what the source is.
Re:Other MP3 Streams (Score:1)
Re:Oh come on (Score:2)
Yabbut a guy in that situation is much better served by just making the songs downloadable, not streaming them.
Oh come on (Score:3)
Who are these people that could pay for the bandwidth needed for streaming audio of any quality -- with banner ads? 24 concurrent connections at 64k would choke a T1 to start. These must be awesome banners! Pop-ups, that's fer sure!
And $2000 is $167 a month. I'll tell you what, there are these two guys in Brooklyn that have been streaming audio to the world for ages, cheaper than that. It's They Might Be Giants, and they've had a "dial-a-song" answering machine up for over a decade.
Now the POTS is a little noisy and a little lossy, but if your audio is SO compelling that you absolutely must STREAM it, that's the cheap way to do it. (And hey, the bandwidth is even paid for - with aggregated micropayments!)
This is a sensible licensing scheme (Score:5)
Thomson developed a licensing scheme that would only charge for companies that "monetize" the codec. Users can now stream mp3 for free as long as they don't charge, and small-time users only pay $2000. Larger streaming companies, such as broadcasters, pay 2% of their revenue from streaming. Therefore, if you don't charge, you don't pay; if you make money on it, you give some back to the developers.
OK: I can now stream mp3 at will, for FREE -- unless I charge for it! But if I'm a big broadcaster, and I make $1Million from streaming, I have to pay them $20,000. Well that sounds like a damn sensible approach!
Now, the bulk of the Tech Review story is not about their licensing scheme, but Thomson's announcement that MP3Pro is going to debut next week. This codec will lead to file sizes half that of mp3 while remaining backwardly compatible - as in, MP3Pro can be played with any current mp3 player, albeit with a predictable loss in quality. In return they are asking for 50% more (free for non-monetized, $3000 minimum or 3% of revenue) to stream MP3Pro.
Re:What do they mean? (Score:2)
This matters. If it's the first case, it will prop up OMDs that allow free indie music downloading and streaming to consumers, and will punish those that want to change to pay-per-download or micropayments. I actually like that. If it's the second sense, they will only let you stream if you're _not_ the artist, and if you're the artist and sell your own CDs, they'll nail you! That's messed up.
Worse yet- they may not have decided which one they mean- or they may refuse to specify except on a case-by-case basis. That's a recipe for massive abuses.
Re:Sounds pretty fair to me. (Score:2)
For instance, if you run a lumber company and wish to have a mp3 of your president talking about things, freely downloadable by prospective customers, does that not count as free because you're trying to sell them lumber and using the mp3 as a tool to do that?
I'm not even going to get into the 'musician selling CDs' angle, that's even more ominous...
Re:Sounds fair to me (Score:2)
I think they will refuse to define what they mean- and that's dangerous. Very dangerous.
It means they can chill speech and discussion about formats by holding the threat of legal action above _anyone_ involved with mp3 streaming. Very bad.
.OGG personal players (Score:3)
Re:Dumb Ideas Hall of Fame? (Score:1)
Re:Huh, 'Informative' ? (Score:2)
Re:Like Mozilla? (Score:1)
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Sounds fair to me (Score:2)
Huh, 'Informative' ? (Score:1)
UDP will do none of those things for you.2 C3AF4F2snlbxq'|dc
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echo '[q]sa[ln0=aln80~Psnlbx]16isb15CB32EF3AF9C0E5D727
Re:This is complete BS. (Score:1)
wget http://server.com/somefile.mp3 &
dd if=somefile.mp3 | mpg123 -
Instant streaming, and downloading at the same time, and assuming the connection is fast enough, you can start playing the file as soon as you start downloading it, and play the whole thing.
(Yes, I'm sure there's some way to get wget to pipe to tee and mpg123, and whatnot, but this is actually easy to type. ;) )
-David T. C.
Re:Not impossible (Score:1)
-David T. C.
Um, I wouldn't laugh (Score:2)
Hey Thompson, see if you can get your superior wavelet mathematicians and marketting statisticians to tell you what 2% of ZERO is!
Thomson may get the last laugh on you, though.
From the article you apparently didn't read:
That's right, it doesn't matter how little you rake in, they want $2000 a year for streaming MP3. Better hope you stay under their radar, or start making plans to move to Ogg-Vorbis sometime soon...
Jay (=
Re:One thing to keep in mind.. (Score:2)
Do we have that in writing? ;-)
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Re:One thing to keep in mind.. (Score:1)
Re:A brief and disjointed analysis (Score:1)
But Philips spent money developing the technology. The band didn't spend a single penny, but they're going to use it to make money. How is it unfair for the band to have to pay something, too? They don't have to if they don't want to. They could use a free format — will having a lot of people unable to listen to this other format be worth saving $2000? — or they could invent their own streaming technology — think they could do this for under $2000?
Sounds like a simple free market question to me. Is it worth the money to have everybody and their sisters be able to listen to your broadcast without installing additional software? If it isn't, just use one of the alternatives that you can afford.
Cheers,
Re:This is complete BS. (Score:1)
Yes, I'd say Thompson is pulling a Rambus on us. It should never have made it into the ISO standard.
One thing to keep in mind.. (Score:4)
So, as I read that, shoutcast servers wouldn't have problems, but if there were a pay-for-play mp3 based radio station, they want a cut. At least they're not being 100% evil...
Re:One thing to keep in mind.. (Score:3)
Only time will tell...
What legal basis could they possibly have?? (Score:5)
Certainly the encoding and decoding of MPEG audio is covered by patents, and is thus licenseable. (And obviously the content of some MPEG audio files is protected by copyright.) But once you already have encoded MPEG audio data, to stream this data requires only unencumbered, open standard protocols (TCP, or RTP (RFC2250 or RFC3119)).
It's hard to see how any restriction on the streaming of pre-encoded, non-copyrighted audio could have any legal weight. In fact, such a restriction might even be seen as a violation of free speech rights...
What, pray tell.. (Score:2)
THey hold patents on the encoder and the decoder, no? So if the data is already encoded..... how can they enforce this?
Just like.... Unisys charging people for using GIF's.. they can only control making them and displaying them, not using them...
Ogg is not lossless (Score:2)
Re:History lesson.... (Score:2)
'ransom' not 'ransome'
There is no similarity. These people are enforcing legal patents they were granted, not simply blocking a trade 'because they can'.
By your logic, the person collecting tickets at the entrance to a concert is a pirate who is preventing you from seeing the concert?
Re:Sounds pretty fair to me. (Score:2)
Or do I have a different definition of "revenue" than the rest of the posters here?
*sigh*
Re:This is complete BS. (Score:2)
Be careful with that axe, Eugene. Them's fightin' words.
I now -expect- to see a patent filed for just such a thing, but generalized away from mp3. I can't think of any prior art, and besides, it wouldn't matter given the present state of the USPTO.
A brief and disjointed analysis (Score:5)
From the anecdotes in the article, the only way to avoid paying Thomson is to eliminate all money from the picture. They want a peice of all stream-related revenue. Which is to say, that if you sell t-shirts to promote the stream, subsidize bandwidth, or equipment, or studio space, they want $2k/year (minimum), and 2% after that. This is from the revenue stream, not profit-after-expenses.
If you sell advertising, they offer a plan where you pay 3% of advertising revenue, with a $3k annual minimum. This, presumably, would also include income from any banner ads on the stream's web page.
It doesn't matter if you're making money hand over fist, or if you're just trying to gather support to keep the thing alive while working elsewhere full-time and running at a loss, just for a fun thing to do. They want a cut.
This will, should it come to pass, probably damage live365's already shaky business model to the point of complete failure.
It will mean that the low-budget streams will need to move to zero-budget, or find a source of income to cover the $2k annual minimum.
It, like so many other things, punishes the little guy. Selling a $10 hat with a inkjet-printed logo costs the seller ~$2k. I'll let the reader figure out how many $10 hats it takes annually to cover the licensing cost of the bloody ISO standard codec.
All conspiracy theories aside, I don't know that they'd be able to introduce this retroactively. I got my licensed-and-legit Fraunhoffer MP3 codec with Microsoft's Netshow. I didn't agree to pay them shit, and I'm never going to. *thumbs nose at Thomson Multimedia*
It makes sense, then, that it would only apply to the "new" MP3Pro codec.
MP3Pro, by the way, is absolutely fucking worthless - it compensates for high-frequency loss by introducing harmonic distortion and high-frequency noise. So, low-bitrate stuff sounds just as "bright" as it did before encoding. This "brightness" is entirely artificial, and entirely inaccurate with respect to the original recording.
Its only honest claim to fame, is that really-low-bitrate stuff might become tolerable (think 8-16Kbps) for voice work, and that it is backward-compatible with existing mp3 players (for the naysayers who will pop up claiming that mp3pro is god's gift to all mankind: it is this backward compatibility which requires its broken hack of a design.)
Incidentally, this works right now: Make a low-bitrate mp3 (the article says 80Kbps is good, so start there), and a high-bitrate (>224Kbps) mp3 of the same material. Grab a plugin for xmms, winamp, wmp, or whatever, that claims to boost (or "recreate" or "reproduce" or "restore") high-frequency sound. Play your low-bitrate mp3 through the plugin, for a demonstration of what MP3Pro can do. Play your high-bitrate mp3 without it, for enlightenment.
Re: (Score:2)
Re:This is complete BS. (Score:2)
Voila, you now have most of the benefits of streaming without, technically, streaming.
Until... (Score:5)
Until you realize that what Thompson considers "profit" and what you consider "profit" are two entirely separate things.
When Thompson tried enforcing the patent licenses on encoding software, they went after quite a few free (as in beer) programmers - their logic was "You are making money from your software because you have banner ads on the download site." (this is how LAME came about.)
So I wouldn't put it past them to say "Hey, you're streaming MP3's, and you have a banner ad there - so therefore you're making a profit."
This will come to pass.. just watch and see.
Re:Not like Mozilla (Score:2)
Interactive Objects [iobjects.com], for one. They're the ones who designed the OS for the Hip Zip, among other things.
Re:Other MP3 Streams (Score:1)
I can't remember the specifcs, but I remember reading on the xiph.com site that Ogg is already suported in a number of commercial products - they seem to be doing a good job of gathering support, and Thompson starting to enforce as predicted can only help their cause.
Re:Like Mozilla? (Score:1)
Re:Shoutcast (Score:3)
Nothing. They don't charge any money.
Of course, distributed live broadcasting would be best accomplished through the deployment of multicast on the Internet. Any application level solutions would be hacks comparitively.
Dumb Ideas Hall of Fame? (Score:1)
Re:Dumb Ideas Hall of Fame? (Score:1)
it uses cheap lossless compression. im f*ing pissed of seeing poorly compressed material with artifacts showing.
Its low res... not enough for hdtv - what happens when everyone switches?.. oh yeah, the mpaa will make shit loads...
don't even get me started on macrovision, region encoding and css.
oh yes. and for the dumb ideas list, add that chip the electronics companies wanted to put indevices to disable them if they were taken out of the country.
Re:Ogg Vorbis? Umm...Okay! (Score:1)
i find it amazing that the record companies are still making cds.. all that free uncompressed quality with no copy-protection? i wonder how that managed to get out.
Its true that mp3 is standard. Ogg Vorbis will never rule unless they re-name it... - you can always tell if somethings going to be sucessful by the name.
Re:Dumb Ideas Hall of Fame? (Score:1)
Re:Not true mister Bonehead! (Score:1)
who has a head made of bone? huh, huh!?
lol
Re:A brief and disjointed analysis (Score:1)
Re:Sounds pretty fair to me. (Score:1)
Re:One thing to keep in mind.. (Score:1)
OTOH, it *is* a bitstream format, and one of the bitstreams it can contain is the Vorbis [vorbis.com] format, which is a music format.
Ogg != Vorbis.
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Re:Sounds pretty fair to me. (Score:1)
YES!!
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Re:One thing to keep in mind.. (Score:1)
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Re:OggVorbis & MP3 Howto (Score:2)
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Re:Oh boy, here it comes... (Score:2)
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Re:Sounds pretty fair to me. (Score:2)
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Re:Shoutcast (Score:2)
Gnutella is just barely practical, and I would say impossible for the dialup user.
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Re:Ogg Vorbis? More like WMA... (Score:2)
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Ogg Tarkin! (Score:2)
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Re:This is complete BS. (Score:3)
Good point.
If I run a streaming radio station, it looks like I owe Thompson $BIGNUM bucks. Clearly, I need to stop running a streaming radio station.
So I'll say "Click here to download the first segment. Please wait 5 minutes", and it spends 5 minutes downloading in full the first 10 minutes of my show, and then calls WinAMP to play back the complete file, stored locally on my hard drive called "1200-1209h.mp3"...
Re:Sounds fair to me (Score:2)
Why not call it MP5? (Score:2)
Phillip.
I use 'em almost exclusively (Score:2)
Oggenc is significantly slower than gogo, but gogo probably represents a HUGE investment in time to tweak it to its levels of performance.
Re:Who cares? (Score:2)
Because that's what the people running these streams are trying to support. They're not going to stream in OGG if less than 5% of the population can actually hear it. It's a waste of their resources. That's why I'm saying this is bad, because when content providers have to choose between OGG and WMA (since MP3 is encumbered), they won't give OGG a thought at all.
Ogg Vorbis? More like WMA... (Score:4)
Unfortunately, apart from in some OSS circles, *nobody* knows about OGG. Apart from the fact that the name (whilst cool to us geeks) is confusing and bizarre to most people, it gets no publicity in the eyes of the people we should be encouraging to use it, and there is next to no audio available in OGG format.
All the companies who have been streaming MP3 (which has been relatively friendly to *nix) will just switch to WMA (Windows Media Audio) since AFAIK, Microsoft gives away the encoding tools for free (beer), and most people actually know about it and can play it with no fuss. This is *bad news* for free audio, not good.
Re:One thing to keep in mind.. (Score:3)
What do they mean? (Score:2)
Re:Other MP3 Streams (Score:2)
Re:What legal basis could they possibly have?? (Score:2)
Done [lly.org]. Abcde 1.9.x defaults to Ogg.
If you stream, you MUST pay (Score:2)
They want fees from people who accept money (directly or indirectly) for streaming
If you stream, you must pay royalties to RIAA, ASCAP, and BMI. If you pay royalties, you must recoup those expenses somehow. If you recoup expenses, you are collecting money and must pay Thomson. (Did my logic miss a step?)
Or you could stream Ogg Vorbis instead.
Re:Sounds pretty fair to me. (Score:5)
MP3s real success is its placement in the market i.e. its widespread adoption--they were there with the right tools at the right time, and allowed people to use it gratis. They probably aren't the best format out there, but they were good enough and fraunhoffer played the right cards at the right time. Plus they secured their dominant position when Napster chose to use mp3 as its sole file-trading format. (not that there was much of a choice at the time.)
That being said, its dominance may even come to an end when Windows XP gets adopted widely and Napster and Thomson start charging--I already know people who have switched all of their music over to the wmf format. But for now, the market has made it the standard--last time I searched for .ogg files on gnutella there were about 3 hits.
Apparently, this is the hidden hurdle that open alternatives face. The only entities that can invest enough money into something to make it a market-place standard are those who hope to make a ton of money off of wide-spread adoption.
Official Site (Score:2)
Re:A brief and disjointed analysis (Score:2)
Re:OggVorbis & MP3 Howto (Score:2)
Re:Dumb Ideas Hall of Fame? (Score:2)
"Marry had a private key. She kept it in escrow. And everything that Marry read, the feds were sure to know."
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Re:One thing to keep in mind.. (Score:2)
*ahem* OGG
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DOOR!!
Re:I use 'em almost exclusively (Score:2)
Re:.OGG personal players (Score:2)
OggVorbis & MP3 Howto (Score:5)
I've an almost updated MP3 HOWTO and even though I've an OggVorbis section in it I'm going to rewrite it with as much coverage.
Boy's and Girls..... if you are using any OggVorbis apps, or know of any tools being developed, let me know.
I'll change the HOWTO's name to MP3 & OggVorbis HOWTO.
Thanks
Phil
Re:What legal basis could they possibly have?? (Score:2)
Really, if Thomson says you owe them money, and the other option is a costly lawsuit, you're screwed either way. Might as well pay up, unless you're bigger than they are.
I encourage everyone to go to http://www.xiph.org RIGHT NOW and pick up a Vorbis player plugin. It's available for UNIX or Windows. Then write a quick script to rip and encode your CDs. And enjoy life without MP3, or Thomson.
-John
I just had a real scary thought (Score:3)
Something like this is too good for the RIAA to just ignore. I am sure some media company if not the RIAA will snatch it.
Oh, also Microsoft is for a way to have its own proprietary format to compete agaisn't mp3's. Look here for more information on some of Microsofts tactics [theregister.co.uk].
If Microsoft bought the patent or the company they can also sue everyone company in existance who offers mp3 file streaming. But, if you use WMA under a MS platform, you can stream it for free. Just only use NT as the server and the client because its illegal to reverse engineer it and port it to other platforms under the DMCA act. I guess we can get all those product activation cards ready or pay $25 for a cd.
Re:This is complete BS. (Score:2)
They have not patented the idea of MP3 streaming. They do hold a bunch of patents [mp3licensing.com] for the algorithms used in MP3 encoders and decoders, however, and, thus, can dictate the license conditions at which they are gonna let you use it.
A little bit of history:
MP3 (Audio MPEG Layer 3) was originally developed back in the early 90s (I believe it was 1992, but I'm not sure) by the Fraunhoeffer Institute [iis.fhg.de] in Germany, which they patented. At first, I believe they allowed everyone to write encoders/decoders based on the codec for free, but later decided to charge 50 cents per each unit sold (if you don't sell your end product, you don't pay anything)with a minimum fee of $15000 per year.
At some point, Fraunhoeffer let Thomson Multimedia [thomson-multimedia.com] handle the licensing of mp3 [mp3licensing.com] and that's where we are at today.
Re:They'll probably get.... (Score:2)
They _did_ or they _do_ continue to? Since all the web sites switched to png (hehe) I haven't heard much about that story. I remember hearing that Atari used to to the same thing, claiming they had a patent for bitmapped graphics.
Actually, I'm kind of amused by this story. The best tools for making and playing mp3s are all freeware, and I've never been to keen on these "fence" outfits that make money off people who trade in stolen goods. People, I think, will manage to trade stolen music in any format just fine without the help of moneyed interests. Let them have their cut of Napster. Then they can take on The 3l33t MP3z Crue and see where that gets them. "Aww go pass another law, ya bum...". So let Big Money slug it out amongst themselves. Technologies like mp3 make them less and less relevant every day. I guess that's hanging them with the rope they weave.
Money (Score:2)
A margin of 2% of all revenues sure would make one choose another format.
Maybe the wizards of the IT industry thinks that everyone makes huge profits from their products. They should try running a local radiostation and work at finding the money to keep it on the air and then the money to stream it on the net.
Even if they broadcast ads, when they get to the "2% of all revenues" part, the whole deal will end with a "oh, never mind then".
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This is complete BS. (Score:4)
A patent on this type of thing is ludicrous, and I hope there are plenty of people around to challenge it. Apathy is the enemy of freedom.
Re: Vorbis needs a NEW NAME! (Score:2)
Vorbis needs a new name.
Ogg Vorbis is not catchy.
I recommend xph. It's a TLA, it's roughly
a derivitave of the people who make vorbis, it has the trendy "X" in it, and sounds cool.
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Shoutcast (Score:2)
oh yea, Gnutella [gnutella.co.uk]
Comment removed (Score:5)
Not like Mozilla (Score:2)
Re:I use 'em almost exclusively (Score:3)
So far as I know, the Ogg Vorbis codec isn't geared toward streaming, though. I don't know if you could stream with it or what it'd take to adapt it to do that.
Icecast2 is designed to stream Vorbis and is nearing release quality.
Re:They'll probably get.... (Score:2)
Just because Joe Average didn't pay (directly) out of his pocket doesn't mean they didn't rake in some serious money.
Sounds pretty fair to me. (Score:3)
I've never had a problem with the MP3 patent..Sure, its nice to have freely available alternatives like Vorbis, but MP3 isn't exactly like One-click-shopping. There's a real basis of years-long research and development behind it, and it was certainly a non-obvious invention.
HAHAHA (Score:2)
Hey Thompson, see if you can get your superior wavelet mathematicians and marketting statisticians to tell you what 2% of ZERO is!
dM
Re:why dosen't the opensores community (Score:2)
It would take time (and money) to switch formats.
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Two witches watch two watches.
Re:Money (Score:2)
It's the 2K$ that bites you in the ass, since you are unlikely to make that in revenues.
Of course, if MS has some MP3 talking about their products, they *could* potentially try to take 2% of MS' revenue.
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Two witches watch two watches.
Re:What legal basis could they possibly have?? (Score:3)
For streaming stuff, you usually use UDP.
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Two witches watch two watches.
Re:Oh come on (Score:2)
If you've got a little mp3 streaming site with a few banner ads to help pay for bandwidth
Who said anything about quality? Who said anything about 24 concurrent connections? I'm just talking little dinky hobbiest sites. Basically, any little guy you just wants to stream a few of his garage band's songs out to a limited audience and has a few banner ads to pay for beer money is supposed (in theory) to pay $2000 bucks.
It doesn't really matter, since (a) Thomson isn't going to bother with little dinky sites, and (b) there are tons of streaming alternatives anyway, but it's just that $2000 could be considered a significant barrier to entry for such things. A more reasonable move on Thomson's part might be to set minimum revenue levels before the payments kick in.
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Convictions are more dangerous enemies of truth than lies.
Re:This is a sensible licensing scheme (Score:5)
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Convictions are more dangerous enemies of truth than lies.
Re:What legal basis could they possibly have?? (Score:2)
You would be amazed that Thomson claims that Sonys Atrac-3, lucent's epac, also use their "patented" technology. The only reason why they havent sued these people is probably because these companies are equally big or even bigger than them. Do you really think that Thomson will close its eyes if and when vorbis comes out into the mainstream?
Re:One thing to keep in mind.. (Score:2)
They're going on screaming about how it's not fair to use someone's work without paying them for it. If that's true, then they shouldn't have any problem paying people for the use of the MP3 format.
Oh boy, here it comes... (Score:3)
Re:A brief and disjointed analysis (Score:2)
Sounds to me like another way to raise the bar for the little guys in the music biz so the big guys can continue to monopolize the business. All they have to do now is announce a minimum fee for making downloads of MP3s available from a band's sales site and they'll really put a lid on that pesky competition.