MPEG-2 royalty rates drop

Denver (CO) – The MPEG LA, the organization in charge of handing out MPEG patent licenses, said that it will drop the fees for “essential” MPEG-2 patents beginning next year.

Beginning January 1, 2010, the royalty rate for each MPEG-2 Decoding, Encoding and Consumer Product will be $2.00, down from the current $2.50, and royalties for MPEG-2 Packaged Medium, such as DVDs, will be reduced to $0.0176 during 2010, and $0.016 after 2010.

MPEG-2 is used as video standard of digital television signals. It also specifies the format of video content distributed on DVDs

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective,” said Larry Horn, MPEG LA president and CEO, in a prepared statement.