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Firm boosts H.264 streaming license fees from $100k up to staggering $4.5M

https://www.tomshardware.com/service-providers/streaming/h264-streaming-license-fees-jump-from-100000-to-4-5-million
40•MaximilianEmel•1h ago

Comments

NooneAtAll3•1h ago
what are the open source alternatives?
charcircuit•1h ago
This is for patent licensing. Using an open source implementation doesn't get rid of your obligation to license the patents for it.
adrian_b•57m ago
In most countries the H.264 patents have already expired, for instance in Europe they have expired, but in USA not yet (in USA most patents should expire towards the end of next year).

So that firm might try to squeeze every penny they can before the expiration of the patents.

kmeisthax•56m ago
AV1, as well as the older On2 codec series it was based off of (VP9, VP8, etc).
topranks•56m ago
VP9, AV1
chromacity•49m ago
As the article says, there are companies seeking royalties for both of these codecs.
adrian_b•39m ago
There is no proof that their patent claims over AV1 or VP9 are valid.

For now they try to bully some smaller companies with the threat of the big legal expenses that would be needed to fight these claims.

throawayonthe•24m ago
i don't think Snap Inc. and Amazon are small companies
mook•15m ago
The funny thing about patent licensing alliances is that there's no guarantee that nobody else outside of the bloc will pop up and start suing people.

Basically, you can consider AOM to be a licensing alliances, where the fee is zero.

adrian_b•51m ago
In most countries, including in Europe, the H.264 patents have already expired. There you can use H.264 freely.

Some patents remain valid in USA, Brazil and a few other countries.

hollow-moe•1h ago
Aren't VP9 and AV1 supposed to be "royalty free formats" ?
adrian_b•34m ago
They have been created with the express purpose of avoiding incidents like this.

Instead of paying the ransom, a streaming company should transcode their movies to a royalty-free format, like AV1 or VP9.

Even big companies like Dell have preferred to disable the H.265 codecs in the computers they sell, instead of accepting similar demands for greatly increased royalties, and I think that it was the right choice.

watermelon0•34m ago
They are supposed to be, but Disney doesn't think so: https://arstechnica.com/gadgets/2026/03/av1s-open-royalty-fr...

Also, let's not forget that the majority of devices still don't have AV1 hardware decoding support. For example, Apple only recently (2023) added support with iPhone 15 Pro and M3 Macs.

adrian_b•27m ago
The claims made by Dolby that some H.265 patent claims that are formulated very vaguely also apply to AV1 are probably bogus.

Like many other such frivolous patent lawsuits, Dolby hopes to either scare the other company into making a deal in order to avoid bigger legal expenses, or to establish a legal precedent if their cunning lawyers can convince a technically incompetent jury that the H.265 patents are applicable to AV1.

This is the kind of trial that should have never been decided by a normal jury, but only by a panel of neutral experts in this field.

mrweasel•1h ago
That's just trying to promote a competitor. This is more or less what Fraunhofer did with the mp3 license, which resulted in bunch of new, and better formats.
kmeisthax•50m ago
This seems particularly desperate, but I'm not surprised this is happening, given that patent owners in general have been very angry that H.264 didn't wind up being nearly as lucrative as MPEG-2 was. Hell, I remember the days when they couldn't even agree if H.264 should have a free streaming tier at all or not - and it seems like that went away.

Maybe Google should finally make good on their threat to only stream YouTube in royalty-free standards.

falkensmaize•46m ago
I guess to me this doesn't seem like that big of a deal? I mean if you have a 100 million subscribers, do you really care much about a few $million increase? I thought the big players like Youtube had already moved to open source codecs already anyway.
charcircuit•33m ago
>few $million increase?

Existing licensees are grandfathered in to the old price.

VladVladikoff•46m ago
I’m confused about this. If I have video on my website that is encoded in x264 am I obligated to pay fees?
adrian_b•44m ago
Not if you are in Europe or in any other place where the H.264 patents have expired.

The patents are still valid in USA, Brazil and a few other places.

silotis•36m ago
*Claimed to still be valid.

If you're just hosting videos on your website you are probably using High Profile which was standardized in March of 2005, i.e. more than 20 years ago. That doesn't stop VIA and MPEG-LA from claiming they still have relevant patents, but that claim is dubious and hasn't been tested in court.

jauntywundrkind•41m ago
They should be sued. It's incredible discriminatory to make it so ridiculously hard for new players to complete.

Hopefully the Licensing Alliance never ever ever gets another customer ever again. Hopefully no one uses any of their new encodings. This is an untrustworthy company, that always have been out to fleece the industry and hold back humanity. Licensing Alliance embodies Lawful Evil, is a stain on the patent system as a whole. It's hard to find the words for how awful, how enraging this cabal is. Ugh. What an evil drain.

We should be able to use computers for audio and video, and it shouldnt involve kings ransoms to some jerks who are better at paperwork & lawyering.

All that work on av1 and av2 looking more and more civilization ally essential as times goes on.

ronsor•38m ago
My advice (not a lawyer) is to ignore the licensing fees; the patents will all be dead by 2027 anyway.

Also I'm not responsible for whatever happens if you do this.

Noaidi•23m ago
So should I re-encode all my videos to OGG? I’m really confused what this means for the average person who has home videos encoded in these formats.
embedding-shape•17m ago
Unless you're running a platform with millions of users, where you use the codec to encode/decode video for others, you have absolutely nothing to worry about due to these news.
Noaidi•14m ago
Thank you!
nuxi•13m ago
Note that OGG is not a video codec, it's just a container format. I.e. an OGG file can contain MPEG-4/H.264-encoded video.
KronisLV•20m ago
That's an insane amount.

That makes me feel even more strongly about throwing proprietary and predatory codecs in the trash and opting to use AV1 et al wherever possible, it's better anyways and surely close to a decade after coming out, we'd expect devices to support it well enough.

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