MPEG Licensing

[jesse.fallon]

I'd like to build a tool to edit video. I'd like to accept input in as many formats as I can, including MPEG-2, MPEG-4 (part 2) and MPEG-4 (part-10) or AVC/H.264. From reading the MPEG-LA documentation, to decode I need to pay $2.50 for MPEG-2, $.25 for MPEG-4 (part2) and $.20 for H.264, and I have to try to track every copy of the tool that is produced, whether it is paid for or not. This could add up to quite a bit of money if the tool is popular.

On2 and Sorenson make tools that decompress all these formats and manage to charge as little as $1/copy. Assuming that they are not producing their products at a loss, I am obviously missing something here.

Does anyone have any recent experience with MPEG-LA and their current requirements for licensing fees?

Thanks,
Jesse

[Zacrifice]

although I can't be sure so don't quote me, but you should be able to get bulk licensing setups that will allow you to buy large batches on licenses for less.

Might be worth looking into perhaps?

[jesse.fallon]

Thanks for that. I was putting off talking to MPEG-LA, as it would just be in their interests to tell me to pay up. But perhaps I have judged them too harshly. I will post the result of their response.
Thanks
Jesse