Re: Ah, another patent encumbered format @ Spaniel
I got it wrong. It's 100,000 units, not 10,000.
This is a quote from the MPEG-LA H.264 License terms summary.
For (a) (2) branded encoder and decoder products sold on an OEM basis for incorporation into personal computers as part of a personal computer operating system, a Legal Entity may pay for its customers as follows (beginning January 1, 2005): 0 - 100,000 units/year = no royalty (available to one Legal Entity in an affiliated group); US $0.20 per unit after first 100,000 units/year; above 5 million units/year, royalty = US $0.10 per unit. The maximum annual royalty (“cap”) for an Enterprise (commonly controlled Legal Entities)
is $3.5 million per year in 2005-2006, $4.25 million per year in 2007-08 and $5 million per year in 2009-10, and $6.5 million per year in 2011-15
All rights to this text belong to MPEG-LA (just a disclaimer to avoid any copyright issues)
So, 20 cents for every shipped copy between 100,000 and 5,000,000, and 10 cents after that up to a maximum of $5 million dollars. That's quite acceptable if you are incorporating it into a product costing $20, but not so good if you are wanting to include it in a popular free Linux distribution. I wonder whether the fact that you are not 'selling' Linux is enough to get out of "sold on an OEM basis" part of the clause?