They aren't charging for use of their technology, they're charging for use of their algorithms/patents.
The extortion part comes from making it an industry standard, we should never allow proprietary protocols to become (official or de-facto) standards.
[1] 802.11fb, now with opposition research acquisition at the MAC layer!
If this means abolishing patents: then yes.
By the way: video codecs have a lot more applications than entertainment. I just want to mention teleconferencing.
Today, purchasing Windows doesn't guarantee you ad- and data mininig free system, and soon it will be difficult to purchase Office at all, you will be renting. In this regard, I'm happy that there are different business models, not just one that would slowly pick the worst traits of everything else.
To add on this argument: another huge problem is that the license terms made open source development/distribution really hard (i.e. a patent minefield). Similarly it could lead to legal trouble for people who just hosted their videos.
The biggest problem is those companies within the group don't agree on the percentage spilt between them. Basically they are just being bloody greedy. And the reason why we have MPEG-LA, HEVC Advance, Velos Group and others.
The good things is that most companies realise how much of a poor job MPEG-LA did ( My guess is that they only cares about their commission any way ), they started MC-IF [1], which includes most of the original HEVC MPEG-LA Group members, HEVC Advance Members and one Velos members as well. They are basically most of the Japanese players... and ...... Qualcomm.
I really wish VVC succeed, and push the technical limits of Video Compression as well as replacement of JPEG, without all the dramas and patents problems.
At least MP3 was created partially with taxpayer money as a cooperation between the the Fraunhofer Institute and the Friedrich Alexander University at Nuremberg. The Fraunhofer Institute is largely funded by commercial research, but ~30% of its funding come from the German federal state and the individual German states.
There's the heart of the issue, the belief that everything can and should have a monetization model. The fact that we had to invent a whole new artificial class of property to handle the existing model should set off some alarm bells here.
A lot of organisations make a lot of money from these algorithms, is having them chip into a non-profit to develop free and open standards too much? How about having some of that research from universities and government standards bodies chip in too?
I agree that inventors should be compensated, but this 20y patented-standard model looks too one-sided to me.
Worth noting that the patent conditions still apply. It may be a problem for some free software distribution, and as a result software like VLC isn't always available by default.
The problem is that "bundling with hardware" is very vague. For example, if some OEM sells their PCs/laptops with preinstalled GNU/Linux (containing VLC), does this count as bundling. Or let us consider, say, a singleboard computer that can be both used as a PC and a set-top box just by installing a different firmware (think GNU/Linux distribution) that is provided for free (as beer) at the vendor's website - what is bundling then?
Worth noting that the license is less than a dollar per device and the manufacturer is only required to pay if he sells like 100k devices per year.
Note that its claims are not necessarily founded on anything e.g. MPEG-LA created a patent pool for DisplayPort, VESA claims the tech is completely royalty-free.
And that’s okay in my book. I much preferred the old days when everyone just paid Sony and Panasonic for a license than the current model where “free” codecs are bankrolled by spying on everyone’s email and helping Russians fix elections.
I think you missed the whole FUD campaign against VPx, where they tried to persuade the public that VPx does infringe patents in their pool.
Classic cases in point are IBM's patent on arithmetic encoding, which rendered that entire class of algorithms radioactive in the 1980s-1990s era, and the original Lempel-Ziv patent claims dating back to 1978.
We are most certainly not better off as a society because we granted decade+ monopolies on those claims, and I see no reason to think any differently of MPEG.
It’s not “extortion” to charge money for people to use technology you developed, and its a better business model for society than bankrolling that technology through advertising (which is the FB/Google alternative to R&D).
MPEG-LA is not locking up technology that already existed or other people developed. Its members are the folks who originally developed this technology. It’s notable that no open-source entity developed something like h.264 first.