The devil you know versus the devil you don't.
You don't know the H.264 devil any better. It's just as likely that some lone patent wolf will come forward and go after H.264. It's simply FUD to say that WebM is somehow more susceptible. Just because MPEG-LA makes you pay for their set of patents doesn't mean they're protecting you against patents they don't hold.
Whereas WebM's details first came to light less than a year ago.
You're right that it is possible that either still violate some patent out in the wild. BUT if you were to weigh the odds -- a nearly decade old open standard technology that has openly solicited and worked to get all potential patent holders in the pool OR a technology closed and proprietary until last year. You really call even money on that?
Since large segments of H.264 were simply dropped for WebM, apparently there's only about 49 H.264 patents total (out of over a thousand) that could even remotely apply. That seems a reasonable number for On2 to work around, and for Google (and everyone else listed on their supporters page)'s lawyers to double check.
So now we are speculating about a random patent troll who happens to hold a patent that doesn't read on H.264 but does read on a simplified version of H.264 with some minor patent avoiding variations. Seems to me that if you're arguing H.264 is clean, then so is WebM.
Read JGG's account, which is still the best account to date at: http://x264dev.multimedia.cx/archives/377
Some quotes:
"But as noted in my previous post, merely being published by Google doesn’t guarantee that it is. Microsoft did similar a few years ago with the release of VC-1, which was claimed to be patent-free but within mere months after release, a whole bunch of companies claimed patents on it and soon enough a patent pool was formed."
"VP8 is simply way too similar to H.264: a pithy, if slightly inaccurate, description of VP8 would be "H.264 Baseline Profile with a better entropy coder". Even VC-1 differed more from H.264 than VP8 does, and even VC-1 didn’t manage to escape the clutches of software patents."
"Most importantly, Google has not released any justifications for why the various parts of VP8 do not violate patents, as Sun did with their OMS standard: such information would certainly cut down on speculation and make it more clear what their position actually is."
And not about patents, but the quality of the spec:
"The spec consists largely of C code copy-pasted from the VP8 source code up to and including TODOs, optimizations, and even C-specific hacks, such as workarounds for the undefined behavior of signed right shift on negative numbers. In many places it is simply outright opaque. Copy-pasted C code is not a spec. I may have complained about the H.264 spec being overly verbose, but at least it’s precise. The VP8 spec, by comparison, is imprecise, unclear, and overly short, leaving many portions of the format very vaguely explained. Some parts even explicitly refuse to fully explain a particular feature, pointing to highly-optimized, nigh-impossible-to-understand reference code for an explanation. There’s no way in hell anyone could write a decoder solely with this spec alone."
But maybe Google will fix it? Ummm think again;
"Update: it seems that Google is not open to changing the spec: it is apparently "final", complete with all its flaws."
I just don't see how one can feel equally comfortable with WebM.
http://carlodaffara.conecta.it/an-analysis-of-webm-and-its-p...
Some highlights:
"Dark Shikari makes several considerations, some related to the implementation itself, and many related to its “patent status”. For example: “VP8’s intra prediction is basically ripped off wholesale from H.264″, without mentioning that the intra prediction mode is actually pre-dating H264; actually, it was part of Nokia MVC proposal and H263++ extensions published in 2000, and the specific WebM implementation is different from the one mentioned in the “essential patents” of H264 as specified by the MPEG-LA.
If you go through the post, you will find lots of curious mentions of “sub-optimal” choices:
[big list of the identical features with minor differences between H.264 and VP8]
What we can obtain from this (very thorough – thanks, Jason!) analysis is the fact that from my point of view it is clear that On2 was actually aware of patents, and tried very hard to avoid them. It is also clear that this is in no way an assurance that there are no situation of patent infringements, only that it seems that due diligence was performed. Also, WebM is not comparable to H264 in terms of technical sophistication (it is more in line with MPEG4/VC1) but this is clearly done to avoid recent patents; some of the patents on older specification are already expired (for example, all France Telecom patents on H264 are expired)."
There's also a follow up here which discusses the thought process behind the 49 potential H.264 patents:
http://carlodaffara.conecta.it/on-webm-again-freedom-quality...
But he says a lot of BS, like, "In fact, one of the most brain damaged things of the current software patent situation is the fact that if a company performs a patent search and finds a potential infringing patent it may incur in additional damages for willful infringement (called “treble damages”). So, the actual approach is to perform the same analysis, try to work around any potential infringing patent, and for those close enough cases that cannot be avoided try to steer away as much as possible. So, calling Google out for releasing the study on possible patent infringement is something that has no sense at all: they will never release it to the public."
Patent law makes it VERY clear that treble damages occur with WILLFUL infringement. Good faith efforts, the inevitably fail, won't be subject to treble damages.
It seems like he's bending over backwards to show that Google shouldn't disclose anything, which is absurd.
His opinion that the suboptimal choices means that WebM has avoided the H264 patents seems very suspect to me. And contradictory, because if they did do what he said, and did accidentally infringe, by his (incorrect) logic they'd be liable for treble damages. Blech.
They have... they're called members of the pool. The same ones that came after Microsoft when MS did VC-1. The same ones who will come after WebM.
What if H.264 infringes on some of Google's patents? Google could countersue and go after members of MPEG-LA, or even end-users of H.264. Google's patent license only covers Google's WebM implementation.
With that said, you'd probably say that you trust Google's engineers more than me. I'd hope so. You have no idea who I am.
[citation needed]
What makes you think that a big company with enormous potential for legal liability would let engineers make decisions that are of legal consequence, like whether to aggressively push a video format amidst a patent minefield?
Do you think the engineers wrote the patent license too?
I guess Google is afraid of being sued for billions for the hundreds of millions of installs that Windows and/or IE9 ship.
You could ask the same question of MPEG-LA: they don't indemnify their customers either.
> If it does, MS would bundle it with IE9
That is not at all clear. I would even call it unlikely.
> I guess Google is afraid of being sued for billions
I guess MPEG-LA is afraid of the same thing.
But Microsoft does. Why doesn't Google?
[0] http://download.microsoft.com/download/9/D/0/9D0A6265-A509-4...
As a consumer you stick with WebM and all that the royalty freeness buys you. I'll stick with H264 knowing that MS has already paid the royalty, the patent pool has virtually every player in the game, and MS indemnifies me as an end user. We'll call it a day.
This is a community of entrepreneurs. What's at stake here is the next YouTube. If you're just a fledgling startup that shows videos online, can you afford a sudden surge in popularity, or will it bankrupt you in patent royalties? Can you estimate your future costs in royalties, or is it subject to change when MPEG-LA thinks it can get some more money from you? If you want to use video in some disruptive new medium, what will MPEG-LA decide to charge for that once they see its promise? Or will they refuse to license the patents at all for this purpose, in favor of giving MPEG-LA members exclusive dibs on this new medium?
100,001 - 250,000 subscribers/year = $25,000; 250,001 - 500,000 subscribers/year = $50,000; 500,001 - 1,000,000 subscribers/year = $75,000; and more than 1,000,000 subscribers/year = $100,000.
That's about 10 to 25 cents per paying customer PER YEAR with first 100K subscribers free. And there are limits and caps on the increases.
It's clear that the adoption of webm is about control and changing the conversation: Google & Mozilla want to drive the direction and own the space. Let's not forget, mozilla owns the 'open source' identity and needs to keep it going, whilst Google has a significantly vested interest with YouTube.
I'm not sure whether they legally conflict, but the H.264 license is obviously against the spirit of the GPL.
Only make a popular browser if you're rich enough to support H.264, I think is the lesson.
In this instance, Mozilla has gone out of it's way to not use the OS-level facility, forcing Microsoft to write a plugin to make that happen.
However, I still totally object to H.264 being a requirement in the spec.
The real problem is non-commercial desktop distributions such as Debian or Fedora; it could still check for the presence of x264 or FFmpeg (with h264 support) on the system and use it if it's available, and defer the responsibility of licensing to the user or distributor.
Even if it couldn't, why would it be a bad thing for Firefox to support OS-supplied codecs on OS X and Windows, and a set of built-in codecs, such as WebM, on Linux?
The first term of the License runs through 2010, but the License will be renewable for successive five-year periods for the life of any Portfolio patent on reasonable terms and conditions which may take into account prevailing market conditions, changes in technological environment and available commercial products at the time, but for the protection of licensees, royalty rates applicable to specific license grants or specific licensed products will not increase by more than ten percent (10%) at each renewal.
(PDF link:) http://www.mpegla.com/main/programs/avc/Documents/AVC_TermsS...
The maximum annual royalty (“cap”) for an Enterprise (commonly controlled Legal Entities) is $3.5 million per year 2005-2006, $4.25 million per year 2007-08, $5 million per year 2009-10, and $6.5 million per year in 2011-15.
…and you're right that there is a footnote saying. "Annual royalty caps are not subject to the 10% limitation" which is important.
I do find it a bit strange to hear people say the license fees are unknown. Even if you assume an unlimited cap, you can schedule out what the pro-rated fees will look like for you for the next 5-10 years based on your projected growth. You can argue that they are too high, but I don't think you can argue that they are unknown. If nothing else they are bounded on the high end.
Free under 100k units
$0.20 per unit above 100k
$0.10 per unit above 5 million units
I'm glad Google open sourced the on2 codec and I can even see that maybe the H.264 prices have been influenced by that move. But from a practical standpoint, I think Apple and Microsoft are making a reasonable move. People say it's short-sighted, but I think they are relatively protected.