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[JimH]

This is likely to cause a lot of problems in the MP3 world.

A federal jury in San Diego has ordered Microsoft to pay $1.5 billion to Alcatel-Lucent in a patent dispute over MP3 audio technology used in Windows.

In its verdict, the jury assessed damages based on each Windows PC sold since May 2003. The case could have broader implications, should Alcatel-Lucent pursue claims against other companies that use the widespread MP3 technology.

Full article at News.com

[benn600]

What about LAME?!  Is that completely separate?  Is the free DVD (mpg2) decoder safe, too?  I don't understand how a codec can be licensed and then other people can make their own that still works (sometimes better) and work around the whole issue.

[Mastiff]

My guess is that the Lame people hasn't got enough money to be worth pursuing. Creative, I River and other MP3 player makers are probably first on the list.

[benn600]

So have those companies avoided paying royalties for using the technology all these years?  What about Apple?  They sell a product called the iPod and it supports MP3s...or have they been paying royalties?  I'm surprised that companies would just ignore licensing issues and go ahead implementing technology they legally can't.

[JimH]

Ben,
If you read the article, it explains that companies believed that they had correct licensing from Thomson/Frauenhofer.

[dawg68fan]

Is J River okay with incorporating the LAME MP3 encoder?

[KingSparta]

I wish I had that much money, I could buy a new car and a bottle of wine

[benn600]

People also claim to believe they have the license to make copies of their DVDs, etc.  People don't realize that merely owning a piece of plastic (a DVD) only gives you permission to view the film.  You don't have any distribution or duplication rights.  People always "think" they're in the right.  That's a great defense but it if held up, we'd have a lot more issues.

[KingSparta]

You don't have any distribution or duplication rights.

it depend on where you live

[hit_ny]

In truth, nothing has yet been decided. Microsoft plans to ask the judge to reduce the damage award and will appeal, according to a source close to the matter, so the ruling could yet be overturned or limited. On Thursday, an attorney for Alcatel-Lucent would not rule out the possibility of an all-out licensing campaign should the verdict stand; but he also acknowledged that the long-term result is very much up in the air.

See wired article here

Too early to say anything.

There is a tiny silver-lining (again largely dependent on how this plays out) here that other (read royalty free) non-mp3 formats might get a serious look, so maybe they might finally be able to get thier favourite format (lossless) on a portable player.

[bbrip]

if ever anything will get paid on this, it will not even near the amount currently being indicted. Just my 2cents.