A group of technology firms looking to license anti-piracy software said Wednesday it has lowered its proposed royalty fees in response to protests from wireless carriers and handset manufacturers.
MPEG LA, which has pooled licenses from five companies for digital rights management technology, cut proposed fees for the software by one-third, to 65 cents per handset. The group also altered its proposed fees to be levied on operators from 1 percent of each transaction to a flat 25 cents per mobile subscriber per year, regardless of the number of user transactions.
The licensing authority drew strong criticism from major industry players earlier this year, claiming steep royalties for the open-standard technology, which was developed by the Open Mobile Alliance, could threaten the economic viability of the digital music and video markets. Analysts say a lack of industry-wide support for MPEG LA’s technology could result in a fragmented market of proprietary DRM technologies that also could stifle the industry.
“The terms announced today strike a balance between users’ interest in reasonable access to this opportunity-enabling technology and patent holders’ interest in a reasonable return on their research and development investments,” said Baryn S. Futa, MPEG LA’s chief executive officer. “That balance allows DRM technology leaders to offer a single license for the convenience of the market as an alternative to negotiating separate licenses.”
A spokesman for the GSM Association, which publicly blasted the initial fee proposal last month, said the industry group is reviewing the revised royalties and hopes to respond within the next few weeks.
