Patent Licensing
In countries where patents on software algorithms are upheld, vendors and commercial users of products that use H.264/AVC are expected to pay patent licensing royalties for the patented technology that their products use. This applies to the Baseline Profile as well. A private organization known as MPEG LA, which is not affiliated in any way with the MPEG standardization organization, administers the licenses for patents applying to this standard, as well as the patent pools for MPEG-2 Part 1 Systems, MPEG-2 Part 2 Video, MPEG-4 Part 2 Video, and other technologies. The MPEG-LA patents in the US last at least until 2027.
On August 26, 2010 MPEG LA announced that H.264 encoded internet video that is free to end users will never be charged royalties. All other royalties remain in place, such as royalties for products that decode and encode H.264 video. The license terms are updated in 5-year blocks.
In 2005, Qualcomm, which was the assignee of U.S. Patent 5,452,104 and U.S. Patent 5,576,767, sued Broadcom in US District Court, alleging that Broadcom infringed the two patents by making products that were compliant with the H.264 video compression standard. In 2007, the District Court found that the patents were unenforceable because Qualcomm had failed to disclose them to the JVT prior to the release of the H.264 standard in May 2003. In December 2008, the US Court of Appeals for the Federal Circuit affirmed the District Court's order that the patents be unenforceable but remanded to the District Court with instructions to limit the scope of unenforceability to H.264 compliant products.
Read more about this topic: H.264/MPEG-4 AVC
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