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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
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