I don't think it's so bad to reward that with a license fee, and the patent administrators are benign dictators. There are lots of exceptions to allow startups to use it, there are sub-inflation caps on the fee increases, and the maximum license fee per hardware device is 20 cents. Online is a bit more complex but still very cheap. full terms here: http://www.mpegla.com/avc/AVC_TermsSummary.pdf
On principle, I lean towards a totally free software solution. But pragmatically, this is a very fair approach to administering a patent for a technology which delivers a lot of value, and and I think h.264 will persist for that reason.
Open-source, on the other hand, has a most unphysical habit of proliferating without the original creator's involvement. If Canonical promises to pay 20c per CD they ship, and 10% of those CDs are imaged and torrented and downloaded and burnt and re-imaged and re-shared all over the web, nobody knows how many "units" are out there, and there's no reasonable way Canonical (or Mozilla, or any other prospective licensee) can comply with any patent license more complicated than "do whatever you want".
Since the fees are capped, some organization could just pay the cap, distribute a "free" codec, and write the cost off as a marketing expense. Mozilla can afford to do this, but refuses on principle.
Is there anything like this for .mp3 support?
Fluendo distributes a "free" MP3 decoder; they pay the license fee on behalf of users.
Of course, we should really just get rid of software patents.