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

Google Has Mass Layoffs (Again), But the Problem is Vastly Larger
started as a rumour about January 2025
Electronic Frontier Foundation Defends Companies That Attack Free Speech Online (Follow the Money)
One might joke that today's EFF has basically adopted the same stance as Donald Trump and has a "warm spot" for BRICS propaganda
 
Early Retirement Age: Linus Torvalds Turns 55 Next Week
Now he's almost eligible for retirement in certain European countries
Gemini Links 22/12/2024: Solstice and IDEs
Links for the day
BetaNews: Microsoft Slop is Your "Latest Technology News"
Paid-for garbage disguised as "journalism"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, December 21, 2024
IRC logs for Saturday, December 21, 2024
Links 21/12/2024: EU on Solidarity with Ukraine, Focus on Illegal and Unconstitutional Patent Court in the EU (UPC)
Links for the day
[Meme] Microsofters at the End of David's Leash
Hand holding the leash. Whose?
Deciphering Matt's Take on WordPress, Which is Under Attack From Microsofters-Funded Aggravator
the money sponsoring the legal attacks on WordPress and on Matt is connected very closely to Microsoft
Gemini Links 21/12/2024: Projections, Dead Web ('Webapps' Replacing Pages), and Presentation of Pi-hole
Links for the day
American Samoa One of the Sovereign States Where Windows Has Fallen Below 1% (and Stays Below It)
the latest data plotted in LibreOffice
[Meme] Brian's Ravioli
An article per minute?
Links 21/12/2024: "Hey Hi" (AI) or LLM Bubble Criticised by Mainstream Media, Oligarchs Try to Control and Shut Down US Government
Links for the day
LLM Slop is Ruining the Media and Ruining the Web, Ignoring the Problem or the Principal Culprits (or the Slop Itself) Is Not Enough
We need to encourage calling out the culprits (till they stop this poor conduct or misconduct)
Christmas FUD From Microsoft, Smearing "SSH" When the Real Issue is Microsoft Windows
And since Microsoft's software contains back doors, only a fool would allow any part of SSH on Microsoft's environments, which should be presumed compromised
Paywalls, Bots, Spam, and Spyware is "Future of the Media" According to UK Press Gazette
"managers want more LLM slop"
On BetaNews Latest Technology News: "We are moderately confident this text was [LLM Chatbot] generated"
The future of newsrooms or another site circling down the drain with spam, slop, or both?
"The Real New Year" is Now
Happy solstice
Microsoft OSI Reads Techrights Closely
Microsoft OSI has also fraudulently attempted to censor Techrights several times over the years
"Warning About IBM's Labor Practices"
IBM is not growing and its revenue is just "borrowed" from companies it is buying; a lot of this revenue gets spent paying the interest on considerable debt
[Meme] The Easier Way to Make Money
With patents...
The Curse (to Microsoft) of the Faroe Islands
The common factor there seems to be Apple
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, December 20, 2024
IRC logs for Friday, December 20, 2024
Gemini Links 21/12/2024: Death of Mike Case, Slow and Sudden End of the Web
Links for the day
Links 20/12/2024: Security Patches, Openwashing by Open Source Initiative, Prison Sentence for Bitcoin Charlatan and Fraud
Links for the day
Another Terrible Month for Microsoft in Web Servers
Consistent downward curve
LLM Slop Disguised as Journalism: The Latest Threat to the Web
A lot of it is to do with proprietary GitHub, i.e. Microsoft
Gemini Links 20/12/2024: Regulation and Implementing Graphics
Links for the day
Links 20/12/2024: Windows Breaks Itself, Mass Layoffs Coming to Google Again (Big Wave)
Links for the day
Microsoft: "Upgrade" to Vista 11 Today, We'll Brick Your Audio and You Cannot Prevent This
Windows Update is obligatory, so...
The Unspeakable National Security Threat: Plasticwares as the New Industrial Standard
Made to last or made to be as cheap as possible? Meritocracy or industrial rat races are everywhere now.
Microsoft's All-Time Lows in Macao and Hong Kong
Microsoft is having a hard time in China, not only for political reasons
[Meme] "It Was Like a Nuclear Winter"
This won't happen again, will it?
If You Know That Hey Hi (AI) is Hype, Then Stop Participating in It
bogus narrative of "Hey Hi (AI) arms race" and "era/age of Hey Hi" and "Hey Hi Revolution"
Bangladesh (Population Close to 200 Million) Sees Highest GNU/Linux Adoption Levels Ever
Microsoft barely has a grip on this country. It used to.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, December 19, 2024
IRC logs for Thursday, December 19, 2024