The GSM Association again blasted proposed rates for licensing anti-piracy technology, calling the revised rates “unreasonable and unworkable.”
The trade association of more than 600 wireless operators rejected the latest royalties proposal from licensing clearinghouse MPEG LA for digital rights management software. MPEG LA’s most recent plan called for phone manufacturers to pay 65 cents per device and for operators to pay 25 cents per mobile subscriber per year for the technology.
The licensing authority lowered its rates last month after the GSMA and other industry groups balked at its initial proposal of $1 per device for manufacturers and 1 percent of every transaction for carriers. But wireless operators say even the lowered proposed royalties threaten the economic viability of the industry they are designed to protect.
While an agreement between the two is likely on the horizon, some fear the stalemate could result in the lack of a standard DRM solution. Carriers and content providers could adopt proprietary technologies, fragmenting the digital content industry.
“We are extremely disappointed that MPEG LA has not responded appropriately to the scale of opportunity … to nurture and grow the mobile content market to achieve its full potential,” said Alan Harper, strategy director for Vodafone Group. It is extremely essential the GSMA’s DRM review process continues until a practical solution is found.” RCR
