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AMM Business Answers MPEG Layer-3 - Version 12.98 [Image]
Technology ... thank you for your interest in our MPEG
Layer-3 audio compression technology. In this
Services document you will find answers to the most
[Image]
frequently asked questions about licensing of
Applications MPEG Layer-3 technology and how to contact us.
Partners
The Fraunhofer Gesellschaft [TOP]
Download
The Fraunhofer Gesellschaft is the leading
Support organization of applied research in Germany. It
operates 47 research centers in Germany with
Gallery about 9,000 employees, about half of them
scientists and engineers. The Fraunhofer
Licensing Gesellschaft expands to a worldwide
[Image] Organization, especially in USA and Asia. Home
of the Fraunhofer Gesellschaft is Munich,
Germany.
One of the goals of the Fraunhofer policy is a
rapid transfer of innovations into products.
The total research expenditure is about US$ 700
million.
The Fraunhofer Institut Integrierte Schaltungen
(Fraunhofer IIS), based in Erlangen, Germany,
is one of the 47 research centers. Fraunhofer
IIS is the leading international research lab
in the field of high quality low bit rate audio
coding.
Fraunhofer IIS has been the main developer of
the most advanced audio coding schemes, like
MPEG Layer-3 and MPEG-2 AAC (Advanced Audio
Coding). Fraunhofer IIS plays a major role in
the ongoing work for the MPEG-4 Audio
standardization process and contributes to many
other standards bodies as well, like ITU-R
TG10/4, ITU-R WP10C, AES and MPEG-IPMP.
WWW: [Image]http://www.iis.fhg.de/audio/
http://www.iis.fhg.de/amm/
THOMSON multimedia [TOP]
The world╢s fourth-largest consumer electronics
group, THOMSON multimedia develops,
manufactures and markets: televisions, VCRs,
camcorders, audio and communication appliances,
satellite decoders, DVD players, as well as
color TV tubes and professional television
equipment (studio equipment, TV cameras,
mixers, etc.).
With its pan-European brands - THOMSON,
TELEFUNKEN and SABA - and its American brands -
RCA, GE and ProScan - today the group is the
leader in the United States, No. 2 in Europe
and is strongly increasing its market presence
in Asia, Latin America and Eastern Europe.
WWW: [Image]http://www.thomson-multimedia.com/
http://www.rca-electronics.com/
http://www.nipper.com/
1. GENERAL [TOP]
Q. I am interested in source coding technology.
What can you do for me?
A. Licensing source code, developing real-time
DSP code as well as DSP-based hardware, and
developing codec libraries for desktop
computers is part of the Fraunhofer IIS
activities. The focus is on (mobile)
high-quality low bit rate audiovisual
communications (e.g. digital broadcasting
systems or internet services).
Q. Regarding MPEG Layer-3, do any patent rights
exist?
A. As for practically any important technology
(and particularly for publicly established
standards), you should know that patent rights
for MPEG Layer-3 exist. Although others may
also hold patents, THOMSON multimedia and
Fraunhofer IIS have an important portfolio of
patents related to MPEG Layer-3. To facilitate
the market acceptance and penetration of
products using MPEG Layer-3, THOMSON multimedia
and Fraunhofer IIS decided to offer companies,
that wish to distribute MPEG Layer-3 products,
the possibility to obtain a license under the
patents of both parties.
Q. Who grants licenses under this combined
portfolio to use MPEG Layer-3?
A. We have split the licensing activities in
two parts:
1. THOMSON multimedia handles consumer
applications, such as desktop software,
broadcast systems, pay-audio services and
codec ICs.
2. Fraunhofer IIS handles professional
applications, such as ISDN codecs based on
DSP hardware, developed as part of a R&D
project with Fraunhofer IIS.
Q. So, whom should I contact?
A. You may address your request to any of us,
but the descriptions in the previous answer and
the rest of this FAQ should give you some
guidance. In order to speed up the process, we
would appreciate to receive a description of
your business model and your expected use of
the technology. You will find the contact
information at the end of this document.
Q. I just want to buy a MPEG Layer-3 software
and/or hardware product. What is available?
A. Many companies already licensed our MPEG
Layer-3 technology and offer those products.
Please visit the Fraunhofer web site
(http://www.iis.fhg.de/amm/) for more
information.
2. PATENT AND KNOW-HOW LICENSING TERMS AND CONDITIONS
[TOP]
Q. How much royalties or other fees do you
charge?
A. The rules of ISO/MPEG determine that
licenses have to be granted on fair and
reasonable terms. For identical applications,
we add that the terms are non-discriminatory.
The details depend on the application and the
specific business model.
Q. What kind of licensing models exist?
A. To date, we have developed and granted
license agreements for the following
applications:
THOMSON multimedia
o Software decoders (see 2.1.)
o Software encoders (see 2.2.)
o Hardware codecs for consumer-type
applications (see 2.3.)
o Pay-audio systems (see 2.4.)
o Broadcast systems (see 2.5.)
Fraunhofer IIS
o Professional applications (see 3.)
o MPEG Layer-3 Source and Object Code
(see 4.)
CREDITS
In all cases, we expect that MPEG Layer-3
products reference the licensors, like:
"MPEG Layer-3 audio compression technology
licensed by Fraunhofer IIS and THOMSON
multimedia".
2.1. SOFTWARE DECODERS [TOP]
2.1.1. Free MPEG Layer-3 Software
Decoders/Players for Personal Use
For the free distribution of decoders we do not
charge a running royalty. At the Fraunhofer IIS
web site (http://www.iis.fhg.de/amm/download/)
you can find the players we have developed and
which may be downloaded for free also.
Fraunhofer IIS does not give any technical
support for the free players. E-mails
complaining about bugs in free software will
not be answered!
More in general, no license fee is expected for
desktop software decoders/players that are
distributed free-of-charge for personal use.
2.1.2. Commercial MPEG Layer-3 Software
Decoders/Players
If MPEG Layer-3 software decoders/players are
sold (shareware or commercial software), the
royalty per decoder is US$ 1.00. We just remark
that we have not asserted our patents against
decoders of which less than 10,000 units have
been sold.
2.2. MPEG LAYER-3 SOFTWARE ENCODERS [TOP]
While most of the distribution of MPEG Layer-3
software decoders is free of charge, for all
MPEG Layer-3 encoders a license is needed and
royalties have to be paid.
2.2.1. Software Encoders not developed by
Fraunhofer IIS
If you have developed your own software encoder
or acquired a software encoder from another
developer than Fraunhofer IIS to run MPEG
Layer-3, you have to get a "patent-only"
license from THOMSON multimedia; the following
royalties apply:
1 - 1,000 encoders [Image] US$ 25.00 per
unit
1,001 - 2,000 US$ 20.00 per
encoders unit
2,001 - 3,000 US$ 15.00 per
encoders unit
3,001 - 10,000 US$ 10.00 per
encoders unit
10,001 - 100,000 US$ 5.00 per
encoders unit
> 100,000 encoders US$ 2.50 per
unit
US$ 15,000 annual minimum, payable upon
signature and each following year in January,
fully creditable against annual sales.
The royalty does not include any on-going
support from Fraunhofer IIS. This agreement
does NOT cover the right to sell MPEG Layer-3
encoded data (e.g. in "pay-audio" and
"broadcast" systems). These rights are covered
by the licenses described under 2.4. and 2.5.
2.2.2. "Professional" MPEG Layer-3 Software
Encoder
The "Professional" MPEG Layer-3 encoder,
developed by Fraunhofer IIS, supports bitrates
from 8 .. 256 kbps (sample rates 8 .. 48 kHz,
mono/stereo). For distribution of the
Professional MPEG Layer-3 encoder you have to
get a "patent and know-how (professional)"
license from THOMSON multimedia (covering the
use of all relevant patents as well as
know-how); the following royalties apply:
1 - 1,000 encoders [Image] US$ 50.00 per
unit
1,001 - 2,000 US$ 40.00 per
encoders unit
2,001 - 3,000 US$ 30.00 per
encoders unit
3,001 - 10,000 US$ 20.00 per
encoders unit
10,001 - 100,000 US$ 10.00 per
encoders unit
> 100,000 encoders US$ 5.00 per
unit
US$ 15,000 annual minimum, payable upon
signature and each following year in January,
fully creditable against annual sales.
The royalty does not include any on-going
support from Fraunhofer IIS.
This agreement does NOT cover the right to sell
MPEG Layer-3 encoded data (e.g. in "pay-audio"
and "broadcast" systems). These rights are
covered by the licenses described under 2.4.
and 2.5.
2.2.3. "Advanced Plus" MPEG Layer-3 Software
Encoder
For applications which do not need an encoder
with full MPEG Layer-3 capacity, we believe
that the "Advanced Plus" MPEG Layer-3 encoder
meets the needs of most customers for personal
use. The "Advanced Plus" MPEG Layer-3 encoder
is developed by Fraunhofer IIS and supports
bitrates up to 56 kbps (sample rates 8 - 24
kHz, mono/stereo), with the additional
capability to encode 128 kbps stereo at 44.1
kHz. For distribution a "patent and know-how
(advanced plus)" license from THOMSON
multimedia is needed (covering the use of all
relevant patents as well as know-how); the
following royalties apply:
1 - 10,000 encoders US$ 12.00 per
unit
10,001 - 100,000
encoders US$ 8.00 per unit
> 100,000 encoders US$ 4.00 per unit
US$ 15,000 annual minimum, payable upon
signature and each following year in January,
fully creditable against annual sales.
The royalty does not include any on-going
support from Fraunhofer IIS.
This agreement does NOT cover the right to sell
MPEG Layer-3 encoded data (e.g. in "pay-audio"
and "broadcast" systems). These rights are
covered by the licenses described under 2.4.
and 2.5.
2.2.4. "Advanced" MPEG Layer-3 Software Encoder
The "Advanced" MPEG Layer-3 software encoder is
developed by Fraunhofer IIS and supports
bitrates up to 56 kbps (sample rates 8 .. 24
kHz, mono/stereo). Please contact Fraunhofer
IIS for licensing details.
2.3. HARDWARE CODECS FOR CONSUMER-TYPE APPLICATIONS
[TOP]
If you have developed an MPEG Layer-3 hardware
decoder (DSP or ICs), you have two licensing
possibilities:
* Integrating a licensed IC (e.g. from
Micronas Intermetall), in which case the
license fee is paid for by the IC
supplier; or
* In all other cases the royalty per decoder
is US$ 1.25.
If you also integrate an encoder into your
hardware device, the royalty is US$ 2.50 per
unit.
2.4. PAY-AUDIO SYSTEMS [TOP]
The licenses mentioned under section 2.2 (MPEG
Layer-3 software encoders) exclude reselling of
MPEG Layer-3 encoded data. To use MPEG Layer-3
in a music-on-demand system, where MPEG Layer-3
encoded data is sold to end-users, you have to
get a "pay-audio" license from THOMSON
multimedia; the following terms apply:
* 1.0 % of the price to the listener
(minimum US$ 0.01 per download).
* Reporting is to be based on the system as
used by the copyright organizations.
* US$ 15,000 annual minimum, payable upon
signature and each following year in
January, fully creditable against annual
sales.
We do not charge a royalty for free
distribution of MPEG Layer-3 encoded data (e.g.
if parts of songs are distributed to promote
mail-order CD-sales).
2.5. BROADCAST SYSTEMS [TOP]
The licenses mentioned under section 2.2 (MPEG
Layer-3 software encoders) exclude
broadcasting. To use MPEG Layer-3 in a
broadcasting system (such as Internet Radio),
you have to get a "broadcast" license from
THOMSON multimedia; the following terms apply:
* Fees charged for broadcasting are based on
the gross broadcast income (including
advertising and subscription).
* Gross broadcast income less than US$
250,000 per year, an annual fee of US$
2,500; or
* Gross broadcast income greater than US$
250,000 per year, a royalty of 1 % of
gross broadcast income.
3. MPEG LAYER-3 APPLICATIONS FOR PROFESSIONAL USE
[TOP]
MPEG Layer-3 applications for professional use
are licensed by Fraunhofer IIS.
* Decoder: US$ 6.25 per unit
* Encoder: US$ 25.00 per unit
4. MPEG LAYER-3 SOURCE AND OBJECT CODE LICENSED BY
FRAUNHOFER IIS [TOP]
Source and Object Code for MPEG Layer-3 encoder
and decoder are licensed by Fraunhofer IIS.
4.1. SOURCE CODE FOR GENERAL PURPOSE CPU╢s (PC╢s)
[TOP]
The following license fees apply for source
code for General Purpose CPUs (e.g. running
under Windows, MacOS and UNIX):
* US$ 30,000 for the decoder source code;
and
* US$ 60,000 for the encoder source code.
Please note that you still need a license for
products created with the source code (see
above).
4.2. DSP SOURCE AND OBJECT CODE [TOP]
DSP code for efficient real-time
implementations of MPEG Layer-3 is licensed on
a non-exclusive basis. Typically, we offer a
"ready-to-run" implementation, using
standard-I/O routines, on one SINGLE target
hardware platform, defined cooperatively
between our customer and Fraunhofer IIS.
The following platforms are supported for MPEG
Layer-3:
* DSP563xx (Motorola)
* TMS320C67 (Texas Instruments)
* ADSP21x6x (Analog Devices)
* TM-1100 (Philips)
Fraunhofer IIS can offer DSP code for any of
these devices, but our favorite is the DSP563xx
family from Motorola. For a stereo encoder up
to 48 kHz sampling rate, you need at least one
DSP56303 plus 192 K * 24 bit external RAM, and
for a stereo decoder, you need one DSP56303
plus 64 K * 24 bit external RAM, or one
DSP56309 without any external RAM at all.
Please note that you may further reduce the
necessary processing power by limiting the
operation to mono (half power) and/or to lower
sampling rates (e.g. half sample rates mean
half power again).
Due to several special encoding options, please
contact Fraunhofer IIS for licensing details.
CONTACT INFORMATION [TOP]
THOMSON multimedia
Mr. Henri Linde
Manager, Licensing & Intellectual
Property
lindeh@thmulti.com
46, Quai Alphonse Le Gallo
F-82100 Boulogne Billancourt
France
voice: +33 1 41 86 52 87
fax: +33 1 41 86 0921 or +33 1 41 86
5638
Fraunhofer IIS
Mr. Niels Rump
Manager, Business Relations
layer3@iis.fhg.de
Am Weichselgarten 3
D-91058 ERLANGEN
Germany
voice: +49 9131 776 611
fax: +49 9131 776 399
ROYALTY SUMMARY [TOP]
SOFTWARE CODECS
* Decoders: Freeware OK; US$ 1.00 per unit,
if sold.
* Encoders:
o Not developed by Fraunhofer IIS
A sliding scale starting at US$ 25.00
per encoder, decreasing to US$ 2.50
per encoder for more than 100,000
units per year.
o The Fraunhofer IIS encoders
+ Professional encoders
A sliding scale starting at US$
50.00 per encoder, decreasing to
US$ 5.00 per encoder for more
than 100,000 units per year.
+ Advanced Plus encoders
A sliding scale starting at US$
12.00 per encoder, decreasing to
US$ 4.00 per encoder for more
than 100,000 units per year.
HARDWARE CODECS
* Decoders: US$ 1.25 per unit (or paid for
by the IC manufacturer)
* Encoders: US$ 2.50 per unit having a
encoder or full codec
MUSIC DISTRIBUTION
* For pay-audio, music-on-demand,
internet-radio and other types of selling
mp3 files, the royalty is 1% of the
revenue (minimum US$ 0.01 per download).
MINIMUM ROYALTIES
* All agreements with running royalties have
an annual minimum of US$ 15,000,
creditable against annual royalties.
[TOP]
[Image] Copyright ╘1998 Fraunhofer-Gesellschaft