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

SLAPP Censorship - Part 86 Out of 200: The Position of Courts on Computer-Generated Lawsuits and Filings From Another Continent (Made by Two Men Who Work for Slop Companies)
Lawsuits by proxy from California
IAM Magazine is in Effect Dead, It's Now Fused Into Microsoft's Patent Troll (Which It Has Promoted All Along)
Microsoft-connected patent trolls in Europe [...] Now, in his new job, Wild can use his 'expertise' to help guide blackmail/extortion to better harm Europe's industry
 
Gemini Links 24/05/2026: Impressions of Auckland, the Age of Left or Right Extremism, and .zim files
Links for the day
Microsoft's 'Hiring Freeze' (Layoffs) and Salary Freeze (While Inflation Approaches Double-Digit Rates)
If they get replaced by anyone, it'll be low-paid folks in low-salary regions [...] workers' stress levels shoot up, compensation goes down
Slop Will Not End Humanity, The Pushers of It Do (Artificial Scarcities and Global Warming)
Causing hunger and poverty in the name of "computation"
How Can the 'Broligarchs' Love Us When They Don't Even Love Themselves?
Their SLAPPs have their limits
Death at IBM Due to Overwork
Dying for IBM is never worth it
We Publish Less, We Get More Exposure
UbuntuPit is coming to realise that quantity isn't what comes to matter or truly "count", especially when quantity comes at expense of authenticity
Codecs and Software Patents - Part IX - GNU Project Has Chosen to Adopt AV1 for Its Videos, Conversion and Additions Underway
One of our readers is working to help GNU through the maze of software patents and maze of patent lawsuits, which aren't the same thing but are somewhat overlapping issues
Links 24/05/2026: SoftBank CEO Getting Conned by Scam Altman, Hotter 2026 and El Nino With Growing Impact
Links for the day
Links 24/05/2026: Ebola Outbreak and "Journalists Identify Murder Victims Of Trump’s Boat Strike Program"
Links for the day
A Huge Proportion of 'Articles' in The Register MS Are Actually Paid Spam of the Communist Party of China, Selling Compromised (for Wiretapping) Technology
The Register MS is having a go at becoming a marketing company or "B2B"
Top Officials Have Just Left Microsoft, Layoffs in Anything But Name
Microsoft's debt is very fast-growing
Local Staff Committee The Hague (LSCTH) Meets "Alicante Mafia" at the European Patent Office (EPO)
Report on meeting with VP1 and his team on 21 April 2026
UbuntuPit (ubuntupit.com) Has Deleted Slop Pages, Its Slopfarm Experiment Has Failed (Like Always!)
Turning one's site into a slopfarm is a death knell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 23, 2026
IRC logs for Saturday, May 23, 2026
The "Next Big" Bonus for IBM's CEO Apparently Comes From American Taxpayers While Veteran IBMers Are PIP'd and RA'd (Laid Off)
the next big thing will be the CEO's bonus
Links 23/05/2026: Starbucks Scraps Disastrous Slopfest, Colbert’s Final ‘Late Show’
Links for the day
Gemini Links 23/05/2026: Poetry, Hobbies, ROOPHLOCH, and More
Links for the day
Government Bailouts Won't be Enough to Save IBM
Bailouts from taxpayers in the US
Links 23/05/2026: Social Media Bans and Demise of Userbase of LLM Chatbots
Links for the day
Legal Letters Are Not Postcards
It seems like intimidation, nothing more
SLAPP Censorship - Part 85 Out of 200: The United Kingdom's Rating for Press Freedom Has Improved, But We Can Do Even Better
we see the US at #64
Sites Realise That Becoming More Active by Using Bots (LLM Slop) is Self-Destructive
We'll soon (maybe next year) also show that some of the 85+ KG of legal papers sent our way are computer-generated garbage, which might run afoul of some rules
European Patent Office (EPO) Strikes Persist, EPO Management Tries to Give False Impression of "Happy Staff"
EPO is trying to broadcast to the world a totally phony image of itself
Gemini Links 23/05/2026: Patience, LLM Chatbts Being Bad, and Unexpected Computer Surgery
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 22, 2026
IRC logs for Friday, May 22, 2026
Links 22/05/2026: Ebola Crisis and Samsung Averts a Walkout With Big Bonuses
Links for the day
The End of FOSSPost (fosspost.org), It Has become an LLM Slopfarm Like FOSSLinux
These sites will never get lucky with slop. These experiments always end badly.
Links 22/05/2026: Inflation Fears and Thailand Tightens Visa Rules for Tourists From Dozens of Nations
Links for the day
EPO Staff Representation Speaks of This Week's Discussion With the EPO's Budget and Finance Committee (BFC) Amid Mass Strikes
The Central Staff Committee's outline (prepared in a rush) or the "flash report"
SLAPP Censorship - Part 84 Out of 200: New Legislation Against SLAPPs on the Way (After We Reached Out to Ministers)
They dealt with the matter individually too, but we won't share this in public, at least not at this time
The Corrupt Lecture the Non-Corrupt - Part XXX - Where Was "The Ethics and Compliance Team" When the Family of EPO President Campinos Was Caught Doing Cocaine?
It remains to be seen if national delegates will tolerate this in future meetings
Gemini Links 22/05/2026: Esperanto Music History, Suspicious Adoption of Signal, and Unauthorised LLM Slop in Code
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 21, 2026
IRC logs for Thursday, May 21, 2026