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what are the open source alternatives?
OpenH264, and Cisco already paid the fees for you, I guess.
Just because AOM/Google says that wont charge a royalty doesn't mean AV1 isn't covered by patents owned by others. Since everyone and their brother saw how they can milk the patent system for money, they got patents that cover all "next-gen" video technologies (AV1, HEVC, VCC) a long time ago and will sue anyone that uses them. Ironically, since there are so many patent holders, each of which want a larger piece of the "licensing pie", it's making the new video technologies impossible to license. You may license HEVC or AV1 from one patent pool, but the other two and hundreds of other individual patent holders could also sue you. This is why many brands like Synology, Dell and HP have just started to simply remove these codecs from their products. I wouldn't treat any video codec as "patent free" until AT LEAST 20 years after the spec was release (AV1 = March 2038). This kind of infighting will guarantee that HEVC or AV1 will never become a ubiquitous standard for at least 20 years the way AVC/h.264 did.

I, for one, am happy about this. Nothing makes me happier than to see patent trolls eat themselves alive. Also, being an open source advocate, I appreciate when propriety technologies that are "good enough" can finally be used by open source applications with broad support. Unless you are pushing a ton of video, or working with high resolution (4K, 8K)/ high bit-rate videos, AVC/h.264 is perfectly fine.

Aren't VP9 and AV1 supposed to be "royalty free formats" ?
They have been created with the express purpose of avoiding incidents like this.

Instead of paying the ransom, a streaming company should transcode their movies to a royalty-free format, like AV1 or VP9.

Even big companies like Dell have preferred to disable the H.265 codecs in the computers they sell, instead of accepting similar demands for greatly increased royalties, and I think that it was the right choice.

That's just trying to promote a competitor. This is more or less what Fraunhofer did with the mp3 license, which resulted in bunch of new, and better formats.
This seems particularly desperate, but I'm not surprised this is happening, given that patent owners in general have been very angry that H.264 didn't wind up being nearly as lucrative as MPEG-2 was. Hell, I remember the days when they couldn't even agree if H.264 should have a free streaming tier at all or not - and it seems like that went away.

Maybe Google should finally make good on their threat to only stream YouTube in royalty-free standards.

I guess to me this doesn't seem like that big of a deal? I mean if you have a 100 million subscribers, do you really care much about a few $million increase? I thought the big players like Youtube had already moved to open source codecs already anyway.
I’m confused about this. If I have video on my website that is encoded in x264 am I obligated to pay fees?
They should be sued. It's incredible discriminatory to make it so ridiculously hard for new players to complete.

Hopefully the Licensing Alliance never ever ever gets another customer ever again. Hopefully no one uses any of their new encodings. This is an untrustworthy company, that always have been out to fleece the industry and hold back humanity. Licensing Alliance embodies Lawful Evil, is a stain on the patent system as a whole. It's hard to find the words for how awful, how enraging this cabal is. Ugh. What an evil drain.

We should be able to use computers for audio and video, and it shouldnt involve kings ransoms to some jerks who are better at paperwork & lawyering.

All that work on av1 and av2 looking more and more civilization ally essential as times goes on.

My advice (not a lawyer) is to ignore the licensing fees; the patents will all be dead by 2027 anyway.

Also I'm not responsible for whatever happens if you do this.

So should I re-encode all my videos to OGG? I’m really confused what this means for the average person who has home videos encoded in these formats.
That's an insane amount.

That makes me feel even more strongly about throwing proprietary and predatory codecs in the trash and opting to use AV1 et al wherever possible, it's better anyways and surely close to a decade after coming out, we'd expect devices to support it well enough.

Profit-seeking at society's expense.

Also known as rent-seeking: "The act of growing one's existing wealth by manipulating public policy or economic conditions without creating new wealth. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic efficiency through misallocation of resources, stifled competition, reduced wealth creation, lost government revenue, heightened income inequality, heightened debt levels, risk of growing corruption and cronyism, decreased public trust in institutions, and potential national decline."[a]

Sigh.

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[a] https://en.wikipedia.org/wiki/Rent-seeking

Communication formats should not be patentable. The potential for lock in abuse is too high.
What is the alternative? It seems like a lot (a majority?) of professional formats are professionally developed by for-profit consortia, with open-source trailing behind as patents expire. Isn't this what patents are for? If a private entity drops $$$/time/expertise into tech shouldn't they be rewarded for some period?

The alternative would be lavishly funded public research, which sounds great to me! But is that going to happen?