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

Links 27/03/2026: Studying Whale Births, Apple is Cancelling Products, Cambodia Arrests Journalists Over Photographs
Links for the day
Perpetual Strikes to Begin at European Patent Office (EPO), Large Majority Votes for Strikes Any Day of the Week
Approved industrial actions [...] Notice how none of the media or even so-called 'IP' blogs write about it
 
"Headcount" as Distraction From Mass Layoffs and Salary Reductions
Things aren't looking well when one considers revenue is acquired, not earned
"Linux" Slop Turning Rarer, New York Times Nowadays Contaminated With LLM Slop
Another day has passed without much slop about "linux"
Gemini Links 27/03/2026: GTD, Gopher Catchup, Gemini Crawlers, and "Slop Everywhere"
Links for the day
Mozilla Was Ruined Like Sirius Open Source Was Ruined - From the Top Down
Mozilla will never return to its Free software roots
Nokia Could Never Recover From Microsoft
It's very important to remember what really happened
Why Techrights and Many Other Sites Stopped Doing April Fools’ Day Articles
Well before slop (made by LLMs) it was "bad optics" to have satire or humour in a site, irrespective of the day of the year
President Not-Cocaine Campinos Notified of Historic EPO Strikes (Thousands of Workers Not Coming Back to the Office)
Please do pay attention to how the media treats these strikes in Europe's second-largest institution
Slides From the Presentation Discussing EPO Strikes Until End of June or Until End of 2026 (Maybe Next Year Too)
More to come soon (later today)
IBM Cuts Are Everywhere (Global), the Aim is to Lower the Pay
Because the revenues keep falling (IBM buys other companies' revenues using borrowed money)
Mozilla is Not a Privacy Company, Mozilla is Run by GAFAM Executives and Managers Who Came From American Surveillance Companies
Would you trust a VPN they claim to be "free"?
SLAPP Censorship - Part 25 Out of 200: That Time Matthew J. Garrett Got Temporarily Banned/Suspended From Twitter
That he gets banned from large social control media platform is hardly surprising given his combative communications
Ubuntu Started as Free With ShipIt, Now It Becomes Payware That Exploits Debian Volunteers (Slaves)
"Ubuntu" the distro now replaces the GNU components inherited from Debian with a bunch of Microsoft GitHub (proprietary) things that reject reciprocal licences
Last Night The Register MS Published a Fake Article. It Mentioned "AI" 27 Times.
Paid-for nonsense! [...] What's left of once-respectable news sites actively harms society
Links 27/03/2026: Google Executive (GAFAM, US, Surveillance) "Named the New BBC Head", Prominent Climate Scientist Resigns From NASA
Links for the day
Gemini Links 27/03/2026: "Being Busy" and "Posting Again"
Links for the day
GNOME Has No "Real" Executive Director, Only an IBM (Perma)'Interim' One With No Openings in Sight
GNOME is having financial problems
Microsoft Experiencing "Leadership Exodus"
Microsoft's current position is no better than Meta's (Facebook)
GNU/Linux Distros Should Reject "Age Verification" and Uphold Software Freedom for Users
It's not about protecting children
Slop Plunge
we can already "smell the blood" of the so-called 'AI industry'
IBM Media Puff Pieces While Layoffs Go On and On
Has the PR industry absorbed the press?
Media Says Microsoft Hiring Freezes, But There Are Already Microsoft Layoffs
They want the public to talk about Microsoft as if it's just not hiring when it is actually firing
Richard Stallman lynchings: Sruthi Chandran splitting Debian
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 26, 2026
IRC logs for Thursday, March 26, 2026
Links 26/03/2026: Tor Relay at National Taiwan Normal University, Copyright Hammers Fall
Links for the day
Gemini Links 26/03/2026: "The War of the Worlds" and "sometimes science is just the dumbest thing"
Links for the day
The World Wide Bots
The shape of the Web is so bad that bots exceed humans in some places
Links 26/03/2026: Solicitors Regulation Authority (SRA) Closes 101 Law Firms in 2 Years, "Please Compensate the Work You Appreciate"
Links for the day
Regaining Software Freedom Means Regaining Control Over Programs That Run on Our Devices
Richard Stallman will speak in Italy
Microsoft Secure Boot Removes Users' Choice
Has Greenland banned Microsoft and 'secure' boot yet?
IBM Pushes Workers Out, It Does Not Count Them as "Layoffs"
The number of IBM layoffs can be as large as tens of thousands per year
Hard to Find a Job After Working for Microsoft (Back Doors Giant, Bribery Hub)
It generally looks like people who chose to serve Microsoft's agenda don't end up too well
Microsoft Lost 31% Of Its Alleged "Value" in Five Months, Then It Got Downgraded
In 2026 Microsoft focuses on keeping the layoffs silent
Altering Perceived Reality to Make It Seem Like Microsoft is Thriving, Not Failing
pretend XBox did not die
SLAPP Censorship - Part 24 Out of 200: The Failed Effort by Brett Wilson LLP to Strike Out My Lawsuit and My Wife's Lawsuit Against Garrett (the Master Allowed Our Lawsuits to Proceed)
This is lawfare
Official New Figures Show That Solicitors Regulation Authority (SRA) Sees Rise in Dishonesty Among Law Firms Forcibly Shut Down ('Euthanised' Due to Misconduct)
It's rather if in our little country as many as 16 law firms were found to be so dishonest that they needed to be shut down
Back to Normalcy
In our datacentre at least
IBM is "Increasing Its Temporary and Part-time Headcount" While Net Headcount Falls (Despite Buying Many Companies and Their Workforce)
Headcount is a rather superficial yardstick.
Confluent Insiders: IBM Laid Off Over 800 at Confluent, Not Just 800
For the record, the layoffs at Confluent won't be over. After the bluewashing there will be "IBM RAs" impacting Confluent folks, aside from PIPs
EPO Union Decides to Continue Industrial Actions, Next Strike in Four Days
The latest strike had the highest participation rate
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 25, 2026
IRC logs for Wednesday, March 25, 2026
Microsoft's "Silent Layoffs" in Slop Clothing
"AI-powered transformation" is just a euphemism for mass layoffs
Where and How to Spot LLM Slop
Many people correctly perceive LLMs as a site's downfall, a step towards the abyss
Public Talk by Richard Stallman in Half a Day "at the Engineering and Architecture Campus of Cesena of the University of Bologna"
He'll probably attract a fairly large crowd
Gemini Links 26/03/2026: Buying a House, Stargazing, OFFLFIRSOCH 2026
Links for the day
Links 25/03/2026: Nations Return to Russian Oil and Burning Wood
Links for the day
Gemini Links 25/03/2026: Resisting Authoritarianism and Why Slop Needs to Go Away
Links for the day
Fedora Maintainer-ship Using Slop (Mistakes) Would Make Fedora Less Reliable
It won't produce reliable code or stable systems one can rely upon
IBM's "Legacy Employees" (Experienced Workers, IBM Management Dubs Them 'Dinobabies')
This notion of "legacy employees" seems like something overlapping with "expensive" (well paid) staff, even if not entirely equivalent
EPO's "Current Industrial Actions Are Likely to Intensify Further."
There is another strike in 5 days
This Morning The Register MS Published Slop Promotion With the Term "AI" 15 Times In It. The Register MS Was (As Usual) Paid to Do This
This is not a serious publisher
SLAPP Censorship - Part 23 Out of 200: We Were Right All Along (for 2 Years) About Third Party Funding and Willingness to 'Break the Bank' in Pursuit of "Revenge"
How much damage can a person do to oneself in pursuit of cover-up of legitimate technical concerns?
Gnome Foundation Inc is in Trouble
the agenda is set GAFAM and IBM rather than donors
Links 25/03/2026: Airports Further Militarised, "Slopification and Its Discontents", Microsoft 'Open' 'Hey Hi' Shutting Things Down
Links for the day
Gemini Links 25/03/2026: Blogging Fright and Absolutely Useless 'Apps' Made by Slop Machines
Links for the day
Rise in Energy Prices Will Significantly Accelerate the Death of So-called "AI Companies"
It should be noted that fake news about Microsoft OpenAI doubling workforce (mere words, not actions) can serve as a nice distraction from the death of Sora due to divestment
It's Always a Question of Trust
There's a widespread stigma of lawyers being manipulative and chronically dishonest
Solicitors Regulation Authority (SRA) Must More Carefully Investigate or Assess the Financial State of Law Firms in the UK
We'll cover this in depth in the future
GAFAM Mozilla Removes Theora Support, Now GNU Needs to Re-encode Videos
Mozilla used to mean something to Free software advocates
An Open Admission Profits Depend on Addiction
Proprietary software tends to be like this
IBM Americas President Ayman Antoun Comes to OpenText, Weeks Ahead the Mass Layoffs Begin
Is that what IBM will be good at?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 24, 2026
IRC logs for Tuesday, March 24, 2026