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