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6 AMM Business Answers MPEG Layer-3 - Version 12.98 [Image]
8 Technology ... thank you for your interest in our MPEG
9 Layer-3 audio compression technology. In this
10 Services document you will find answers to the most
12 frequently asked questions about licensing of
13 Applications MPEG Layer-3 technology and how to contact us.
16 The Fraunhofer Gesellschaft [TOP]
19 The Fraunhofer Gesellschaft is the leading
20 Support organization of applied research in Germany. It
21 operates 47 research centers in Germany with
22 Gallery about 9,000 employees, about half of them
23 scientists and engineers. The Fraunhofer
24 Licensing Gesellschaft expands to a worldwide
25 [Image] Organization, especially in USA and Asia. Home
26 of the Fraunhofer Gesellschaft is Munich,
29 One of the goals of the Fraunhofer policy is a
30 rapid transfer of innovations into products.
31 The total research expenditure is about US$ 700
34 The Fraunhofer Institut Integrierte Schaltungen
35 (Fraunhofer IIS), based in Erlangen, Germany,
36 is one of the 47 research centers. Fraunhofer
37 IIS is the leading international research lab
38 in the field of high quality low bit rate audio
41 Fraunhofer IIS has been the main developer of
42 the most advanced audio coding schemes, like
43 MPEG Layer-3 and MPEG-2 AAC (Advanced Audio
44 Coding). Fraunhofer IIS plays a major role in
45 the ongoing work for the MPEG-4 Audio
46 standardization process and contributes to many
47 other standards bodies as well, like ITU-R
48 TG10/4, ITU-R WP10C, AES and MPEG-IPMP.
50 WWW: [Image]http://www.iis.fhg.de/audio/
51 http://www.iis.fhg.de/amm/
53 THOMSON multimedia [TOP]
56 The world´s fourth-largest consumer electronics
57 group, THOMSON multimedia develops,
58 manufactures and markets: televisions, VCRs,
59 camcorders, audio and communication appliances,
60 satellite decoders, DVD players, as well as
61 color TV tubes and professional television
62 equipment (studio equipment, TV cameras,
65 With its pan-European brands - THOMSON,
66 TELEFUNKEN and SABA - and its American brands -
67 RCA, GE and ProScan - today the group is the
68 leader in the United States, No. 2 in Europe
69 and is strongly increasing its market presence
70 in Asia, Latin America and Eastern Europe.
72 WWW: [Image]http://www.thomson-multimedia.com/
73 http://www.rca-electronics.com/
74 http://www.nipper.com/
79 Q. I am interested in source coding technology.
80 What can you do for me?
81 A. Licensing source code, developing real-time
82 DSP code as well as DSP-based hardware, and
83 developing codec libraries for desktop
84 computers is part of the Fraunhofer IIS
85 activities. The focus is on (mobile)
86 high-quality low bit rate audiovisual
87 communications (e.g. digital broadcasting
88 systems or internet services).
90 Q. Regarding MPEG Layer-3, do any patent rights
92 A. As for practically any important technology
93 (and particularly for publicly established
94 standards), you should know that patent rights
95 for MPEG Layer-3 exist. Although others may
96 also hold patents, THOMSON multimedia and
97 Fraunhofer IIS have an important portfolio of
98 patents related to MPEG Layer-3. To facilitate
99 the market acceptance and penetration of
100 products using MPEG Layer-3, THOMSON multimedia
101 and Fraunhofer IIS decided to offer companies,
102 that wish to distribute MPEG Layer-3 products,
103 the possibility to obtain a license under the
104 patents of both parties.
106 Q. Who grants licenses under this combined
107 portfolio to use MPEG Layer-3?
108 A. We have split the licensing activities in
111 1. THOMSON multimedia handles consumer
112 applications, such as desktop software,
113 broadcast systems, pay-audio services and
116 2. Fraunhofer IIS handles professional
117 applications, such as ISDN codecs based on
118 DSP hardware, developed as part of a R&D
119 project with Fraunhofer IIS.
122 Q. So, whom should I contact?
123 A. You may address your request to any of us,
124 but the descriptions in the previous answer and
125 the rest of this FAQ should give you some
126 guidance. In order to speed up the process, we
127 would appreciate to receive a description of
128 your business model and your expected use of
129 the technology. You will find the contact
130 information at the end of this document.
132 Q. I just want to buy a MPEG Layer-3 software
133 and/or hardware product. What is available?
134 A. Many companies already licensed our MPEG
135 Layer-3 technology and offer those products.
136 Please visit the Fraunhofer web site
137 (http://www.iis.fhg.de/amm/) for more
140 2. PATENT AND KNOW-HOW LICENSING TERMS AND CONDITIONS
143 Q. How much royalties or other fees do you
145 A. The rules of ISO/MPEG determine that
146 licenses have to be granted on fair and
147 reasonable terms. For identical applications,
148 we add that the terms are non-discriminatory.
149 The details depend on the application and the
150 specific business model.
152 Q. What kind of licensing models exist?
153 A. To date, we have developed and granted
154 license agreements for the following
159 o Software decoders (see 2.1.)
160 o Software encoders (see 2.2.)
161 o Hardware codecs for consumer-type
162 applications (see 2.3.)
163 o Pay-audio systems (see 2.4.)
164 o Broadcast systems (see 2.5.)
168 o Professional applications (see 3.)
169 o MPEG Layer-3 Source and Object Code
174 In all cases, we expect that MPEG Layer-3
175 products reference the licensors, like:
176 "MPEG Layer-3 audio compression technology
177 licensed by Fraunhofer IIS and THOMSON
180 2.1. SOFTWARE DECODERS [TOP]
183 2.1.1. Free MPEG Layer-3 Software
184 Decoders/Players for Personal Use
186 For the free distribution of decoders we do not
187 charge a running royalty. At the Fraunhofer IIS
188 web site (http://www.iis.fhg.de/amm/download/)
189 you can find the players we have developed and
190 which may be downloaded for free also.
191 Fraunhofer IIS does not give any technical
192 support for the free players. E-mails
193 complaining about bugs in free software will
196 More in general, no license fee is expected for
197 desktop software decoders/players that are
198 distributed free-of-charge for personal use.
200 2.1.2. Commercial MPEG Layer-3 Software
203 If MPEG Layer-3 software decoders/players are
204 sold (shareware or commercial software), the
205 royalty per decoder is US$ 1.00. We just remark
206 that we have not asserted our patents against
207 decoders of which less than 10,000 units have
210 2.2. MPEG LAYER-3 SOFTWARE ENCODERS [TOP]
213 While most of the distribution of MPEG Layer-3
214 software decoders is free of charge, for all
215 MPEG Layer-3 encoders a license is needed and
216 royalties have to be paid.
218 2.2.1. Software Encoders not developed by
221 If you have developed your own software encoder
222 or acquired a software encoder from another
223 developer than Fraunhofer IIS to run MPEG
224 Layer-3, you have to get a "patent-only"
225 license from THOMSON multimedia; the following
229 1 - 1,000 encoders [Image] US$ 25.00 per
232 1,001 - 2,000 US$ 20.00 per
235 2,001 - 3,000 US$ 15.00 per
238 3,001 - 10,000 US$ 10.00 per
241 10,001 - 100,000 US$ 5.00 per
244 > 100,000 encoders US$ 2.50 per
247 US$ 15,000 annual minimum, payable upon
248 signature and each following year in January,
249 fully creditable against annual sales.
251 The royalty does not include any on-going
252 support from Fraunhofer IIS. This agreement
253 does NOT cover the right to sell MPEG Layer-3
254 encoded data (e.g. in "pay-audio" and
255 "broadcast" systems). These rights are covered
256 by the licenses described under 2.4. and 2.5.
258 2.2.2. "Professional" MPEG Layer-3 Software
261 The "Professional" MPEG Layer-3 encoder,
262 developed by Fraunhofer IIS, supports bitrates
263 from 8 .. 256 kbps (sample rates 8 .. 48 kHz,
264 mono/stereo). For distribution of the
265 Professional MPEG Layer-3 encoder you have to
266 get a "patent and know-how (professional)"
267 license from THOMSON multimedia (covering the
268 use of all relevant patents as well as
269 know-how); the following royalties apply:
272 1 - 1,000 encoders [Image] US$ 50.00 per
275 1,001 - 2,000 US$ 40.00 per
278 2,001 - 3,000 US$ 30.00 per
281 3,001 - 10,000 US$ 20.00 per
284 10,001 - 100,000 US$ 10.00 per
287 > 100,000 encoders US$ 5.00 per
290 US$ 15,000 annual minimum, payable upon
291 signature and each following year in January,
292 fully creditable against annual sales.
294 The royalty does not include any on-going
295 support from Fraunhofer IIS.
297 This agreement does NOT cover the right to sell
298 MPEG Layer-3 encoded data (e.g. in "pay-audio"
299 and "broadcast" systems). These rights are
300 covered by the licenses described under 2.4.
303 2.2.3. "Advanced Plus" MPEG Layer-3 Software
306 For applications which do not need an encoder
307 with full MPEG Layer-3 capacity, we believe
308 that the "Advanced Plus" MPEG Layer-3 encoder
309 meets the needs of most customers for personal
310 use. The "Advanced Plus" MPEG Layer-3 encoder
311 is developed by Fraunhofer IIS and supports
312 bitrates up to 56 kbps (sample rates 8 - 24
313 kHz, mono/stereo), with the additional
314 capability to encode 128 kbps stereo at 44.1
315 kHz. For distribution a "patent and know-how
316 (advanced plus)" license from THOMSON
317 multimedia is needed (covering the use of all
318 relevant patents as well as know-how); the
319 following royalties apply:
322 1 - 10,000 encoders US$ 12.00 per
326 encoders US$ 8.00 per unit
328 > 100,000 encoders US$ 4.00 per unit
330 US$ 15,000 annual minimum, payable upon
331 signature and each following year in January,
332 fully creditable against annual sales.
334 The royalty does not include any on-going
335 support from Fraunhofer IIS.
337 This agreement does NOT cover the right to sell
338 MPEG Layer-3 encoded data (e.g. in "pay-audio"
339 and "broadcast" systems). These rights are
340 covered by the licenses described under 2.4.
343 2.2.4. "Advanced" MPEG Layer-3 Software Encoder
345 The "Advanced" MPEG Layer-3 software encoder is
346 developed by Fraunhofer IIS and supports
347 bitrates up to 56 kbps (sample rates 8 .. 24
348 kHz, mono/stereo). Please contact Fraunhofer
349 IIS for licensing details.
351 2.3. HARDWARE CODECS FOR CONSUMER-TYPE APPLICATIONS
354 If you have developed an MPEG Layer-3 hardware
355 decoder (DSP or ICs), you have two licensing
358 * Integrating a licensed IC (e.g. from
359 Micronas Intermetall), in which case the
360 license fee is paid for by the IC
363 * In all other cases the royalty per decoder
366 If you also integrate an encoder into your
367 hardware device, the royalty is US$ 2.50 per
370 2.4. PAY-AUDIO SYSTEMS [TOP]
373 The licenses mentioned under section 2.2 (MPEG
374 Layer-3 software encoders) exclude reselling of
375 MPEG Layer-3 encoded data. To use MPEG Layer-3
376 in a music-on-demand system, where MPEG Layer-3
377 encoded data is sold to end-users, you have to
378 get a "pay-audio" license from THOMSON
379 multimedia; the following terms apply:
381 * 1.0 % of the price to the listener
382 (minimum US$ 0.01 per download).
384 * Reporting is to be based on the system as
385 used by the copyright organizations.
387 * US$ 15,000 annual minimum, payable upon
388 signature and each following year in
389 January, fully creditable against annual
392 We do not charge a royalty for free
393 distribution of MPEG Layer-3 encoded data (e.g.
394 if parts of songs are distributed to promote
395 mail-order CD-sales).
397 2.5. BROADCAST SYSTEMS [TOP]
400 The licenses mentioned under section 2.2 (MPEG
401 Layer-3 software encoders) exclude
402 broadcasting. To use MPEG Layer-3 in a
403 broadcasting system (such as Internet Radio),
404 you have to get a "broadcast" license from
405 THOMSON multimedia; the following terms apply:
407 * Fees charged for broadcasting are based on
408 the gross broadcast income (including
409 advertising and subscription).
411 * Gross broadcast income less than US$
412 250,000 per year, an annual fee of US$
415 * Gross broadcast income greater than US$
416 250,000 per year, a royalty of 1 % of
417 gross broadcast income.
419 3. MPEG LAYER-3 APPLICATIONS FOR PROFESSIONAL USE
422 MPEG Layer-3 applications for professional use
423 are licensed by Fraunhofer IIS.
425 * Decoder: US$ 6.25 per unit
426 * Encoder: US$ 25.00 per unit
428 4. MPEG LAYER-3 SOURCE AND OBJECT CODE LICENSED BY
431 Source and Object Code for MPEG Layer-3 encoder
432 and decoder are licensed by Fraunhofer IIS.
434 4.1. SOURCE CODE FOR GENERAL PURPOSE CPU´s (PC´s)
437 The following license fees apply for source
438 code for General Purpose CPUs (e.g. running
439 under Windows, MacOS and UNIX):
441 * US$ 30,000 for the decoder source code;
443 * US$ 60,000 for the encoder source code.
445 Please note that you still need a license for
446 products created with the source code (see
449 4.2. DSP SOURCE AND OBJECT CODE [TOP]
452 DSP code for efficient real-time
453 implementations of MPEG Layer-3 is licensed on
454 a non-exclusive basis. Typically, we offer a
455 "ready-to-run" implementation, using
456 standard-I/O routines, on one SINGLE target
457 hardware platform, defined cooperatively
458 between our customer and Fraunhofer IIS.
460 The following platforms are supported for MPEG
463 * DSP563xx (Motorola)
464 * TMS320C67 (Texas Instruments)
465 * ADSP21x6x (Analog Devices)
468 Fraunhofer IIS can offer DSP code for any of
469 these devices, but our favorite is the DSP563xx
470 family from Motorola. For a stereo encoder up
471 to 48 kHz sampling rate, you need at least one
472 DSP56303 plus 192 K * 24 bit external RAM, and
473 for a stereo decoder, you need one DSP56303
474 plus 64 K * 24 bit external RAM, or one
475 DSP56309 without any external RAM at all.
477 Please note that you may further reduce the
478 necessary processing power by limiting the
479 operation to mono (half power) and/or to lower
480 sampling rates (e.g. half sample rates mean
483 Due to several special encoding options, please
484 contact Fraunhofer IIS for licensing details.
486 CONTACT INFORMATION [TOP]
492 Manager, Licensing & Intellectual
495 46, Quai Alphonse Le Gallo
496 F-82100 Boulogne Billancourt
498 voice: +33 1 41 86 52 87
499 fax: +33 1 41 86 0921 or +33 1 41 86
506 Manager, Business Relations
511 voice: +49 9131 776 611
512 fax: +49 9131 776 399
515 ROYALTY SUMMARY [TOP]
520 * Decoders: Freeware OK; US$ 1.00 per unit,
525 o Not developed by Fraunhofer IIS
526 A sliding scale starting at US$ 25.00
527 per encoder, decreasing to US$ 2.50
528 per encoder for more than 100,000
531 o The Fraunhofer IIS encoders
533 + Professional encoders
534 A sliding scale starting at US$
535 50.00 per encoder, decreasing to
536 US$ 5.00 per encoder for more
537 than 100,000 units per year.
539 + Advanced Plus encoders
540 A sliding scale starting at US$
541 12.00 per encoder, decreasing to
542 US$ 4.00 per encoder for more
543 than 100,000 units per year.
547 * Decoders: US$ 1.25 per unit (or paid for
548 by the IC manufacturer)
550 * Encoders: US$ 2.50 per unit having a
551 encoder or full codec
555 * For pay-audio, music-on-demand,
556 internet-radio and other types of selling
557 mp3 files, the royalty is 1% of the
558 revenue (minimum US$ 0.01 per download).
562 * All agreements with running royalties have
563 an annual minimum of US$ 15,000,
564 creditable against annual royalties.
568 [Image] Copyright ©1998 Fraunhofer-Gesellschaft