MPEG LA License for MPEG-4 Video FAQ This page provides answers to frequently asked questions about potential patent license fees for content providers and software developers who use MPEG-4 video. The following information pertains only to the terms of MPEG LA's MPEG-4 Visual Patent Portfolio License; it does not apply to any other licenses that may be necessary.
The FAQ includes the following sections:License Fees. Questions about the use fees for licensing MPEG-4 video.
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General Licensing
License Fees
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General Licensing1.1 What is MPEG LA?MPEG LA is in the business of offering users access under one license to essential patents for standards-based technologies owned by many patent holders. MPEG LA provides these licenses as a convenience to the market in order to save users the time and expense of negotiating individual licenses with multiple patent owners and the resulting payment of many separate royalties. One of the licenses offered by MPEG LA includes patents that are essential to the MPEG-4 Visual (Part 2) Standard.
1.2 What is the general summary of the royalties and rights in the license?The royalties and rights in the license are:Manufacturers pay royalties for the right to make and sell decoders and encoders. Personal codec use and user-to-user communications are covered as part of the manufacturer’s license. Video providers do not pay royalties unless MPEG-4 Visual material is provided for remuneration. - Whenever MPEG-4 Visual material is provided for remuneration, video providers may be required to pay royalties for the right to use the decoders and encoders in the following circumstances:
MPEG-4 Visual material is provided for direct remuneration (for example, remuneration is from a user for a subscription or specific titles). Remuneration is from other sources (for example, free over-the-air broadcasting).
When video is delivered via the Internet to a user without charge, no royalties are payable during the first term of the license (ending December 31, 2008), but you still need to obtain the license.
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License Fees2.1 When does MPEG LA require payment of a use fee?Where MPEG-4 Visual material is provided for remuneration, video providers may be required to pay royalties for the right to use the decoders and encoders in the following circumstances:MPEG-4 Visual material is provided for direct remuneration (for example, remuneration is from a user for a subscription and the number of different subscribers exceeds certain minimums, or for specific video titles). Remuneration is from other sources (for example, free over-the-air broadcasting).
However, in the case of video that is delivered via the Internet to a user without charge, no royalties are payable during the first term of the license (ending December 31, 2008), but you still need to obtain the license.
2.2 Is it true that if I don't charge for access to my MPEG-4 video content, I don't need a license with MPEG LA?Generally, yes, so long as you don't receive another form of remuneration in connection with the MPEG-4 video content, such as paid advertising. Even then, no royalty is payable during the first term of the license (ending December 31, 2008) if the video is delivered via the Internet without charge to the user.
2.3 Is a use fee required for transmission of MPEG-4 video over the Internet?Yes, if the user pays for a subscription and there are more than 100,000 different subscribers during the year, or if the user pays for specific video titles. However, no use fee applies during the first term of the license (ending December 31, 2008) if the video is delivered to the user without charge. In both cases, you still need to obtain the license.
2.4 How is the use fee for Internet transmissions by a service or business for remuneration determined?In the case of subscription services, the fee for Internet transmissions is based on the number of users who subscribe in a year, or if you can't identify the number of users, the number of different decoders that access the service in a year determines the use fee. In the case of specific titles, the fee is the lower of US $0.02 or 2% per title.
2.5 What if I am unable to determine either of the use fees discussed in question 2.4?MPEG LA will work with you to find an equivalent method for determining the use fee.
2.6 If I am a nonprofit organization distributing MPEG-4 video content, do I have to pay a use fee?You don't have to pay a use fee unless you receive remuneration for distributing the MPEG-4 video content, as described in the answer to question 2.4 above.
2.7 If I am using MPEG-4 video solely for self-promotional purposes on my Web site, do I need to pay a use fee?No. If you are using MPEG-4 video to promote your own company or products, your only remuneration is from the sale of your own products or services, and you are not paid or otherwise remunerated for the MPEG-4 video, you do not need to pay a use fee.
2.8 What if I charge a fee to join my organization that includes access to my Web site?No use fee is required unless a primary benefit of the organization is to obtain access to MPEG-4 content (yours or someone else’s) or you charge a separate fee for access to MPEG-4 content.
2.9 If I put MPEG-4 video on my enhanced CD or DVD-ROM, which is sold, do I need a license from MPEG LA?A royalty applies to MPEG-4 video on physical media that is paid for on a title-by-title basis. Paid for on a title-by-title basis means the video is replicated for a fee and/or sold. If you pay another party to replicate the CD or DVD-ROM for you, the replicator normally would pay the royalty to MPEG LA. If the replicator has paid the royalty to MPEG LA, you do not need to pay an additional royalty (or sign a license with MPEG LA) when you sell the CD or DVD-ROM.
2.10 If I put MPEG-4 video on a CD for personal use, do I have to pay a use fee?No, you don't have to pay any use fee.
2.11 If I am watching MPEG-4 video I paid for, do I need to pay a use fee?No. Where the use royalty applies, the MPEG LA license collects the use royalty from the video provider.
2.12 If the software I distribute accesses MPEG-4 video through Microsoft Windows Media Player, do I need to get an MPEG-4 Visual patent license from MPEG LA or pay any fees to MPEG LA for the distribution of my software?No. MPEG-4 Visual decoders or encoders that are included in Windows Media Player for the Internet are covered by the license Microsoft has with MPEG LA.
2.13 If I distribute Windows Media Player with my software, do I need to get an MPEG-4 Visual patent license from MPEG LA or pay any fees to MPEG LA for distributing the MPEG-4 Visual decoder it contains?No. Distribution of MPEG-4 decoders and encoders that are included in Windows Media Player for the Internet are covered by the license Microsoft has with MPEG LA.
2.14 If my application accesses MPEG-4 through Windows Media Player, do I need to include any MPEG-4 notices or language in my end-user license agreement or anywhere else in my application?No. The MPEG LA notice is included in the Windows Media Player end-user license agreement (EULA).
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