Licensing fees for using codecs/formats?

bjornkn wrote on 3/29/2002, 5:42 PM
I was considering using AVI/DivX codec on a 3D animation movie assembled in VV3. It is for a commercial client (insurance company), but only to be used on their Intranet for educational purposes.
My client have to pay royalties for the music used, and they also asked me if there would be any licensing fees on the DivX codec. I didn't think it would be, but to be sure I checked with DivX. It turns out that I would have to pay $1500 ($500 discount until April, which is 2 days away, holidays and all..) to distribute it. It would cover distributing up to 3000 copies of CDs with DivX codec (I'm not actually distributing any CDs at all).
I'm not happy at all with this situation, thus I don't think I will use DivX anymore, although I still think it makes great quality avi's.

My question then is:
Are there similar fees for using other codecs/formats commercially?
What about mpeg1/2 and wmv files?
Or those other AVI codecs?

Comments

bjornkn wrote on 3/31/2002, 11:56 PM
Please help me on this subject.
I reall need to know if any of the other video formats/codecs will require licenses to be paid.
I'm sure some of the experts here would know that?
Cheesehole wrote on 4/1/2002, 2:19 AM
bjornkn:

just about every piece of software comes with a license agreement which you must agree to before installing the product. that's where you will find the answer to your question.

if you want to distribute the stand-alone WMV7/8 codec pack, you must apply for a distribution license from Microsoft. it's free, but you have to fill out a form.
PeterWright wrote on 4/1/2002, 5:25 PM
I also hope someone who knows can clarify this.

My attitude is that if I buy a codec, or it is included in a product I buy, such as the Main Concept codecs with VV3, then I have the right to use that codec in anything I produce, whether I distribute 3 or 30,000.

If there is a "limited" use condition, as there appears to be with your divx situation, then this should be made completely clear at the time of acquisition - not hidden away in the small print.

Peter
liquid324 wrote on 4/1/2002, 6:47 PM
hmmm. correct me if im wrong, but you just said that it was going to be viewed on an intranet. If that's the case, then there will only be one copy of it, and everyone who views it, will just be viewing that copy. There wouldn't be multiple copies then.
bjornkn wrote on 4/2/2002, 2:47 AM
Yes, it will only be one copy, on their server. But apparently DivX have a "starter pack", which is the cheapest version in their licensing system, and that includes up to 3000 copies of distributed CDs.
It's a bit stiff to pay $1500 to distribute one single 2min movie, isn't it?

I've been looking around at other avi codecs, but so far I have not found any licensing fees anywhere.
Ligos have apparently bought the Indeo codecs from Intel, and they are not developing it further. But no fees to be found on their web pages.
AFAIK mpeg movies doesn't need specific codecs for viewing? Neither did I find any licensing for distributing either.
MS's wmv format doesn't seem to demand any fees either?
To me it looks like DivX is the only company charging fees for distributing movies with their codec commercially.
I originally thought that DivX was made by enthusiast, like Linux etc, but it looks like I was very wrong :(
Chienworks wrote on 4/2/2002, 7:09 AM
MPEG-2 has a licensing fee involved for the viewer as well as for the producer of the video. However, that fee is charged on the viewing software itself (if you find a free MPEG-2 player it's *probably* illegal, or you've probably paid for it somehow included in the price of something you bought with it.) and not on the encoded media that you distribute.
SonyEPM wrote on 4/2/2002, 8:15 AM
Many people have noticed that MPEG-2 files do not play back on every machine. Here's the scoop:

You have to have an MPEG-2 decoder installed on your computer if you want to view MPEG-2 files.

An MPEG-2 decoder is not included in the WMP (or Real or QT) installed codec package because a license fee needs to be paid to MPEG.org and MPEG-LA for each decoder.

If you install Vegas or VF, the MC MPEG-2 decoder is installed, and you'll be able to watch MPEG-2 files on your computer, but there is no standalone decoder that you can send to the end users.

Standalone MPEG-2 decoders can be found at www.vcdhelp.com

MPEG-2 doesn't stream, so if you are delivering over the web, the entire file will need to be downloaded before playback begins.

What format works on every modern computer that has any media player, mac or windows? MPEG-1.

kkolbo wrote on 4/2/2002, 9:43 AM
The Windows media player wmv version 8 codec has been my codec of choice for these kind of distributions. Surprisingly even MAC's seem to play it better than MPEG-1. I don't understand that but, MAC using companies have all been surprised that the wmv's I have sent them run when some of the MPEG-1's will not. The MPEG's seem to has audio volume problems. Anyway, I do not distribute the codec with the media. I provide a link to the download page at Microsoft. They download it directly and that way I am not distributing the codec. There is a MAC and Windows version that they can download. No fees, No muss, No fuss.

Just me two cents.
DuncanS wrote on 4/3/2002, 9:16 AM
If you use any of the Windows Media codecs (v7 or v8) the Media Player will *automatically download* the codec for you - most users (if always online) don't even notice it's happened.
bjornkn wrote on 4/4/2002, 12:27 AM
Thanks for all the input on this issue.
It looks to me now that the only company that actually charges fees for distributing media that uses their codecs/encoding is DivX. There are apparently fees for mepg2 as well, but only for the software encoding/decoding the media?
Looks like a very good reason to stay away from DivX...
It is unfortunate, because it does a good job, although there are lots of problems importing them into VV3 (black frames etc)...
Cheesehole wrote on 4/4/2002, 3:37 AM
they have to make money somehow right? at least you can encode/decode freely. it sounds like they only charge money if you are going to use it for commercial purposes.

Microsoft can let you encode/decode/distribute for free because the player has advertising built in, and MS has such market dominance that they can get the player into the hands of millions of users with ease, making the commercial space in the player and any links from the player very valuable.

the cost of encoding MPEG2 is built into Vegas's price or whatever encoder's price. SoFo has to pay some company (whoever it is?) every time a user registers the MPEG encoding plugin. the cost of DEcoding is embedded in the player. you pay for that too when you buy a set top DVD player, or a software player. so you have to pay at both the encoding and decoding end, but you don't have to pay to distribute.

the fact that some people think they should be able to use quality software for commercial purposes without paying the hard working developers is what's *unfortunate* in my eyes.

I'm all for free and "open development" based software, but that choice is up to the developer. if the DivX codec adds recognizable value to your work, it should be easy to justify paying a license fee for that extra value. talk to them you might be able to work a deal.

the DivX name is a double edged sword. the original DivX ;) codec was an illegal hack of MS MPEG4, but DivX 4 is a completely new (and legal) thing. it's a popular name, but often is associated with underground / free software.
kkolbo wrote on 4/4/2002, 7:29 AM
Nicely said Cheese.