metastandard

Over a dozen companies get money for each DVD player produced.

Various licensing fees add up to over $20 in royalties for a $200 DVD player, and about $0.20 per disc.

The price of the DVD player hardware has fallen well below $200, yet the cost of intellectual property likely hasn't gone down as fast. In the PC world, the share of the IP cost — the portion that goes to Microsoft for the Windows license — also rises with time.

Is it the right model for the intellectual property? It seems that the problem with this system is that it disproportionately rewards established players. Can a more liquid market exist for IP contributions, where technical merit plays more role, and politics — less?

A metastandard would allow interoperability without limiting competition for the core licensing revenue. This is possible with software. We'll see what happens to MPEG-4.