Blog Post

Association Says Proposed Handset DRM Fees Are Too Expensive

“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.” I agree — $1 per device is reasonable, but charging per transaction is ridiculous. Aside from the argument over the level of the charge, adding a per transaction fee increases the complexity of selling music. Also, music will be sold in different ways, probably by the same company. How do they sort out how much to pay if music is included in a package?