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Association says proposed handset DRM fees are too expensive

A trade association of mobile operators and content providers took up the fight against a group of technology companies it said is looking to overcharge for anti-piracy software.

In a prepared statement, the Mobile Entertainment Forum (MEF) blasted a proposal by MPEG LA to charge handset manufacturers $1 per device and carriers 1 percent of any transaction to cover the costs of digital rights management (DRM) technologies supported by the Open Mobile Alliance. The MEF called the planned rates “onerous, impractical and unclear,” adding that steep fees threaten the viability of the industry the technology is designed to protect.

“After an in-depth member consultation program, it is clear that the MEF membership is concerned that the fee level proposed by MPEG LA for mobile DRM licensing will inhibit mobile entertainment industry growth,” said Patrick Parodi, chair of the MEF. “We hope to be able to work with MPEG LA to suggest a compromise licensing program and fee structure, which will maximize the opportunities from mobile entertainment for all concerned.”

Handset manufacturers, which aren’t likely to profit from mobile content purchases, seem to be particularly concerned with the planned charges. Several electronics makers made headlines last month, claiming publicly the rates were simply too high.

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