A group of 18 patent holders yesterday made available a patent portfolio licence for MPEG-4, the audio and video technology used to compress large digital files, enabling their fast transfer over the internet. The release of the portfolio could open the door to the official adoption of the format as the new digital media distribution standard.

The availability of the portfolio follows last November's release of the Visual Patent Portfolio Licence, which set the price plan for licensing the technology. The group of 18 patent holders, known as MPEG LA, includes Apple, Sun Microsystems, Samsung and France Telecom.

The group says that the new systems licence provides "fair, reasonable and non-discriminatory access" to the technology.

The royalty rates created controversy when announced in July 2002. According to the licensing terms, owners of web site content will be able to licence the new video and audio compression format for $0.25 per subscriber, subject to an annual cap of $1 million.

The fees will be applicable to web site operators that use the technology for commercial purposes, such as paid advertisements, pay-per-view services or subscriptions. There will be no royalty payable by operators with fewer than 50,000 subscribers.

The licensing terms will apply different models to different business environments. Cable and satellite providers will be charged on a one-time rate; mobile phone operators will pay the same fee as internet providers.

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