Bonum Certa Men Certa

Microsoft and MPEG-LA Called “Patent Trolls”, Antitrust Complaint Filed

MPEG LA logo



Summary: The MPEG Cartel and Microsoft Corporation both engage in abusive activities whereby patents are used anti-competitively and discriminatingly

IF THERE IS something that Microsoft and MPEG-LA have in common, it is that both are using patent bullies 'on the side'.



In our previous posts about the subject we showed that MPEG-LA was headed by a patent troll (Larry Horn), who is already taking shots at VP8.

A few days ago we showed that the CEO of Salesforce called Microsoft “alley thugs” and according to IDG he also indirectly called them patent trolls (by analogy):

Salesforce.com CEO Says Microsoft Is a 'patent Troll'



[...]

Speaking with reporters on the sidelines of a company conference in Singapore, Benioff declined to comment on specifics of the suit, but reiterated his description of Microsoft as a patent troll.

"Patent trolls are part of the industry today, that's just the way it is. We've dealt with them before and we'll deal with this situation in the same exact way," Benioff said, noting that the Microsoft lawsuit would have no material impact on the company.


This post, however, is hardly about Microsoft, which pays trolls like Acacia and promotes cartels like MPEG-LA. It would be more useful to concentrate on the latter entity because it is being sued for antitrust violations, just like Microsoft.

It's no secret (though certain copyright and patent system defenders insist otherwise) that copyrights and patents are monopoly privileges, granted by the government. In fact, some of our elected officials have made the argument that antitrust law should be used against the worst abuses of intellectual property law. While it's unclear how successfully that will play in courts, we may soon have a bit of a test case. Slashdot points us to the news that German company Nero AG is suing MPEG-LA, claiming abuse of monopoly power with its patent pools for licensing digital video codecs.


Nero added GNU/Linux support a few years ago. Here are some more details and the text of the lawsuit [PDF].

Nero AG, a company with one of the most fitting names ever (can you imagine a company called Hitler or Stalin 2000 years from now?), has filed an anti-trust lawsuit against the MPEG-LA. The German technology company claims the licensing body has abused its monopoly power, and that is has not honoured agreements made with the US Department of Justice. There's some juicy stuff in here.


Our reader Ryan asks: "Nero is suing the MPEG Cartel while promoting the Nero AAC encoder?

"The funniest part is where it says that all of the MPEG-2 "essential" patents have expired, so MPEG Cartel trumped up some more."

MPEG-LA is headed by Larry Horn (the 'horny' patent troll, the troll with the horns), so it deserves no sympathy. Horn is truly a patent troll (by definition) and by extension, Posgon calls MPEG-LA a "Patent Troll".

They make no bones about it. These trolls are “going after” users of technology. They are pirates. Let us hope SCOTUS pops their balloon today.


Here is what Slashdot had to say about the subject and here is the extortion tariff:

MPEG LA: Yes, since the Web site is receiving remuneration for the AVC video content it makes available on a subscription basis, it would benefit from the coverage our AVC License provides. The amount of royalties owed, if any, would depend on the number of Subscribers to that website during a calendar year:

100,000 or fewer subscribers/year = no royalty; 100,001 - 250,000 subscribers/year = $25,000; 250,001 - 500,000 subscribers/year = $50,000; 500,001 - 1,000,000 subscribers/year = $75,000; and more than 1,000,000 subscribers/year = $100,000.


"Holy cow," wrote Pamela Jones in Groklaw, "$100,000 for one video based on all subscribers for the year, instead of how many actually viewed it, at least, and do you really believe that such a single typical video brings in that much value to WSJ? Are patent dudes off their rockers? Just how many such videos would you want to offer at those rates? *Now* do you see the magnitude of what Google has just done? Thank you, Google."

Florian wrote about this subject as well.

For the time being, I believe it's best to wait until there are news, either positive ones from Google (concerning its patent clearance and/or its indemnification policy) or negative ones from other patent holders. One way or the other, this situation should be clarified before anyone takes a risk.


Here is an analysis that Florian is citing.

An analysis of WebM and its patent risk



[...]

So, calling Google out for releasing the study on possible patent infringement is something that has no sense at all: they will never release it to the public.


There is additional analysis from Ryan Paul and in the next post we will discuss the fact that WebM is not really Open Source, according to the OSI.

Recent Techrights' Posts

How to Identify Demonisation or Dehumanisation Tactics Against Interesting Figures or Luminaries in Free Software
Rather than in general or generally in technology
We Should Learn From Bulgaria
Why can't European companies and government recognise and react to a threat (when they see one)?
Canonical: Ubuntu is GAFAM (US), We're Resellers of American Proprietary Software
They want people to pay for a licence
Links 03/02/2026: "Distraction is a Sin" and Fake "Encryption" (Surveillance With Good Marketing)
Links for the day
 
IBM Falls by Over 10%
a recipe for disasters like accounting fraud
Links 03/02/2026: Windows Copies GNU/Linux, Windows TCO Shown Again
Links for the day
Gemini Links 03/02/2026: Alhena Turns One, Slop Rejected, and Max Roy Carrouges Recalled
Links for the day
Dr. Andy Farnell on Why and How European Authorities Can Adopt Free Software, Parenting in the Age of Digital Abundance
Will Europe use technology that Europe controls (not the hegemon), for a change?
Seems Like IBM Trolls Use Chatbots to Vandalise Platform That Discusses IBM's Secret Layoffs, Forever Layoffs
Not for the first time either
You Know Your Company is Dead or Basically a Pyramid Scheme When Jim Cramer Keeps Promoting Its Stock
How much does IBM pay for "puff pieces" or "fluff" about QC?
Red Hat (Under IBM) Works for Microsoft (Proprietary Software) and Slop
Yesterday Red Hat's official site, redhat.com, published exactly 5 new blog posts
IBM is Dying (More Layoffs), Red Hat Will Continue to Suffer From the Acquisition
Financial engineering
Colombia Adopting GNU/Linux Even Faster (at Microsoft's and Apple's Expense)
Do politics play any role in this?
An Effort to Tackle Slavery in 'Open Source' Clothing
"a civil rights lawsuit to examine the concerns of censored developers in the free, open source software ecosystem"
$15 billion lawsuit: Ubuntu, Google & Debian crowdfunding campaign launch
Reprinted with permission from Daniel Pocock
The Solicitors Regulation Authority (SRA) Delusion - Part II - Why We Need to Expose the SRA to More Daylight, Public Scrutiny
SRA is neither effective nor regulated
400-Page US Federal Court Against Abuses by Google, Microsoft and Front Groups That Abuse Volunteers for American Corporations
There are 386 pages in total (in the US claim)
Corporate Influence Never Impacted Us
There's no reason to assume we'll ever "sell out"
Growth of GNU/Linux in Cuba
Right now a lot of the world drafts or already implements a GAFAM exit plan
A Day After EPO Strikes an Escalation to Heads of Delegations to the Administrative Council
They rely on the European media playing along, helping them to hide major blunders, even crimes
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, February 02, 2026
IRC logs for Monday, February 02, 2026
Gemini Links 03/02/2026: Stargazing, Development Boards, and Tcl/Tk Slop
Links for the day
Microsoft Lost 20% of Its Money in the Past 6 Months
Microsoft is hiding what's really happening while mocking critics
Great News, IBM 'Gained' Almost 10% in "Goodwill" Value After Firing Tens of Thousands in 2025
"goodwill" will be inflated despite IBM staff getting sick of IBM
Americans Move to GNU/Linux
some of the biggest American populations
I Still Like Drawing and Various Other Arts (They Help My Activism and Journalism), Slop is an Enemy of Creative People
Recognise that slop isn't intelligence; it's a generational excuse for plagiarism and privatisation of not only the Commons but also proprietary knowledge (without authorisation)
Carmen-Lisandrette Maris (Mission:Libre) Explains to Adolescents and Young Adults How Free Software Improves Privacy
Based on what we've seen and read, Mission:Libre has a solid grasp of Software Freedom
Chatbots Didn't Do Any Good for Microsoft
Google "AI" = search + copypasta
Links 02/02/2026: Cultural Cleansing by China and 'Living Behind Firewalls" in Iran
Links for the day
GNU/Linux Measured at More Than 4% in Russia
growing adoption of GNU/Linux in Russia
Gemini Links 02/02/2026: Stages of Age, Workflows, and Counting Capsules
Links for the day
Oracle's Debt Rose Over 20 Billion Dollars in Just 3 Months
Is "hey hi" becoming a synonym for debt?
Oligarchs' 'Speech Zones' Are Not the "Public Square"
The apologists of social control media, including press that got "addicted" to such fake "media", are helping dictators and oligarchs grab the public attention away from the real press
IBM Misleads and Gaslights Investors With Slop Sold as "AI" (the Business is Waning, Mass Layoffs Continue)
People who do this are dishonest. They should not be put in charge.
Links 02/02/2026: 'Melania' a Horror Movie "Will They Inherit Our Blogs?"
Links for the day
Doing More Detailed Series (Long-Form Works)
Long readings or book-like reading binges are only possible when parts are suitably labeled (name and numbers) if not interlinked
Mobbing at the European Patent Office (EPO) - Part II - Racism, Cocaine Use and White-Collar Corruption
When you hire people illegally, to work for cocaine users and keep quite about the cocaine use, what will be the impact on the reputation of an institution?
A Can of WORMS - Part II - Darkening the Name of RMS, Associating It With Crime
Beware projection tactics
Submit Your Suggestions for EU's Embrace of Software Freedom by Tomorrow
Time to leave GAFAM (US) hegemony behind
Slopless Weekend
This is not sustainable
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, February 01, 2026
IRC logs for Sunday, February 01, 2026
Gemini Links 01/02/2026: Fossil Heating Installations and Some FOSDEM Coverage
Links for the day
The State of Memory Leaks in GNU/Linux
The issue won't be solved by adding more memory
Links 01/02/2026: Nvidia's Jensen Talks Down Microsoft 'Open' 'Hey Hi' and Britain's Starmer Makes Friends With China, Japan
Links for the day
Why Microsoft Accenture Has So Many Layoffs in Recent Years
The debt of Accenture doubled a year ago
Links 01/02/2026: Public TV Gutted by Cheeto, Billionaires Fund a Cheeto Propaganda Movie in 'Documentary' Clothing
Links for the day
The New Site ("New Techrights", SSG Since 2023) Exceeds the Old Site in Requests
The "New Techrights" gets about twice as many requests as the "old" (WordPress) "Techrights", the site of 2006-2023
20 Years Ago
Some time soon all this slop frenzy will become like yesterday's "blockchain" or "metaverse"
Gemini Links 01/02/2026: Zdzisław Beksiński and Disconnected Git Workflow
Links for the day
Talks About Nadella's Microsoft Exit After Chatter About Tim Crook Leaving Apple (Years Ahead of Retirement Age)
Mass layoffs and record debt do not represent a company's health.
We Still Cover the Same Problems We Spoke of 20 Years Ago
We're not easily seduced by "novelty" (new things), we try to judge them critically
Patents Standing in the Way
They also cause environmental harm
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 31, 2026
IRC logs for Saturday, January 31, 2026
IBM, a Microsoft Company
Microsoft and IBM as a pair go a long way back