Follow Up on HTML5 Video in IE9

Microsoft’s Dean Hachamovitch:

Several comments speculated about Microsoft’s financial interest in the codec. (Microsoft participates in MPEG-LA with many other companies.) Microsoft pays into MPEG-LA about twice as much as it receives back for rights to H.264. Much of what Microsoft pays in royalties is so that people who buy Windows (on a new PC from an OEM or as a packaged product) can just play H.264 video or DVD movies. Microsoft receives back from MPEG-LA less than half the amount for the patent rights that it contributes because there are many other companies that provide the licensed functionality in content and products that sell in high volume. Microsoft pledged its patent rights to this neutral organization in order to make its rights broadly available under clear terms, not because it thought this might be a good revenue stream. We do not foresee this patent pool ever producing a material revenue stream, and revenue plays no part in our decision here. 

★ Monday, 3 May 2010