MP3 patent issues?

Kenneth Burgener kenneth at
Wed Aug 3 12:13:47 MDT 2005

Lonnie Olson wrote:
> You only need to be concerned if you develop an encoder/decoder for  
> commercial use.

This seems to conflict with this FAQ entry:

"Do I need a license to distribute mp3/mp3PRO encoded content?
Yes. A license is needed for commercial (i.e., revenue-generating) use 
of mp3/mp3PRO in broadcast systems (terrestrial, satellite, cable and/or 
other distribution channels), streaming applications (via Internet, 
intranets and/or other networks), other content distribution systems 
(pay-audio or audio-on-demand applications and the like) or for use of 
mp3/mp3PRO on physical media (compact discs, digital versatile discs, 
semiconductor chips, hard drives, memory cards and the like)."

or even this comment:

"In case your business does not involve the manufacture of relevant 
products, but importation or purchase of such products from a third 
party manufacturer, you are advised to check whether the manufacturer is 
duly licensed by us, as the trade in unlicensed products may expose your 
company to liability for patent infringement. Accordingly, you are 
advised to obtain licensed products only."

I may be misreading the FAQ but it seems that you need to pay 
"royalties" for:
	- developing an encoder, decoder
	- distributing MP3 encoded content
	- streaming MP3 content

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