The GSM Association has rejected the revised DRM licensing offer from MPEG LA. Originally priced at $1 per handsets and 1% of all transactions MPEG LA lowered the fee to 65c per handset and 25c per subscriber per year — which The Register claimed was still the most expensive royalty scheme ever. “MPEG LA is missing a tremendous opportunity to unite the industry behind one solution,” said Rob Conway, CEO of the GSM Association and Board member. “It’s clear that the revised proposal remains unreasonable and unworkable – but we are confident that MPEG LA will continue to respond to market feedback.” Sounds like they’re angling for further reductions.
The release goes on: “The GSMA Board is also frustrated by the lack of transparency surrounding the details and structure of IPR that MPEG LA considers ‘essential’. These details have not been revealed to date, which has led to members’ questions regarding the validity of the patents.” I should think so. You can’t claim someone is infringing patents without telling them what the patents are…whatever happened to SCO, anyway?
GSMA also reiterated its threat to find alternative DRM standards. After its call for tender it received some 14 proposals, although admits it has ” uncovered additional material issues that require resolution… The Board is therefore unable to make a final recommendation to its Members until these outstanding issues have been resolved. It has instructed the GSMA to work with candidates toward a resolution, and to complete the process as quickly and as reasonably as possible.”
What everyone seems to want is to license the DRM off MPEG LA, but not at the levels set down by the collection of patent-holding companies. To the extent that they are looking at alternatives, which will be more complicated to introduce and perhaps lead to fragmentation.
Related stories:
–MMCA, OMA Sign Agreement On Removable Media
–Open Mobile Alliance Distinguishes Itself From DRM Patent Pool
–Towards Universal DRM
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