Google and MPEG LA have announced that they have come to an agreement over Google's VP8 video codec. 11 patent holders have agreed that any patented techniques used by VP8 can be used without payment of a royalty, forever.
In 2010, Google bought On2, a company that developed video compression algorithms. Shortly after the purchase, Google offered On2's VP8 algorithm on a perpetually royalty-free basis, so that it could be readily used in open source projects.
MPEG LA sells licenses to various patented technologies. Video compression algorithms such as the widely used H.264 are usually covered by multiple patents held by multiple companies. MPEG LA works with these patent holders to pool them together and provide simple license agreements that cover the range of patents so that the algorithms can be licensed without having to negotiate with each company individually.
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via http://arstechnica.com/information-technology/2013/03/google-mpeg-la-agree-to-royalty-free-terms-for-vp8-video-codec/
