Blog Post

Phone DRM: The Most Expensive Royalty Operation Ever

In its usual inimitable style the Register has opined that the recent concession by MPEG LA to cut licence fees for patents required for the Open Mobile Alliance’s DRM technology represent something of a coup, since its still “the most expensive royalty operation in the history of the planet”. I don’t know much about the history of royalties, so I can’t comment on that, but I agree with the view that “it looks like the license fees were always set with a view to a climb down”. After all, if you’re going to start charging for something that had previously been free any price will be viewed as too high — so you start with a price higher than you want so people see the eventual price as more reasonable.
Related stories:
Skepticism Over OMA DRM Rate Cuts
Towards Universal DRM
GSMA Threatens Review of DRM Standards