Do Podshow/PSMN know about this?

[el]

If you decide to sell your music in MP3 format, you are responsible for paying Fraunhofer a percentage of each sale because you are using their patents. Vorbis is patent and license-free, so you will never need to pay anyone in order to sell, give away, or stream your own music.

Not sure how accurate this is, but I found it on a site about OGG Vorbis (http://www.vorbis.com/faq). Anyone know if this is the case?

[conradslater]

What about if you burn it to Cd? Do you have to pay philips?
Surely it's all about big quanity - thousands of units sold and then you get all the legal attention from all over the place.

[el]

Well look at how fussy the RIAA are over people sharing music etc. IF this is still current (FAQ was updated in 2003) it would mean Podshow would have to take a bigger cut than just a few cents for processing a transaction.

[mongrel]

If you decide to sell your music in MP3 format, you are responsible for paying Fraunhofer a percentage of each sale because you are using their patents. Vorbis is patent and license-free, so you will never need to pay anyone in order to sell, give away, or stream your own music.

Not sure how accurate this is, but I found it on a site about OGG Vorbis (http://www.vorbis.com/faq). Anyone know if this is the case?

Yeah, technically this is true. But I think Conrad is probably right--you're still flying under the radar unless you really attract attention in the mainstream media. It would be great if everybody in the world knew what Ogg Vorbis was, though.

[el]

I'm not sure they will want to be flying under the radar for too long if you listen to Adam Curry. I have no problem whether they pay a license or not, it's just something I thought they might like to think about when they're promising artists that they'll be able to make $.70 on every dollar if they sell their music via PSMN.

[mongrel]

Oh, I agree El. Things could get rather sticky for all parties involved if this was a detail that got overlooked...

[el]

Definately. I'm sure if Podshow are serious about making the PSMN a force in online music sales they'll have this covered, but as it's information that was pretty much buried, I thought I'd throw it out there.

[womengrow]

I think the license is handled (in most cases) by the software manufacturer that creates the mp3 file. GIF files are a protected format, developed by CompuServe. If you by a copy of Adobe Photoshop, Adobe pays licensing fee for their program to have the capability to create GIF files. Apple pays a fee to the Fraunhofer Institut so itunes can create mp3 files for the user: http://www.mp3licensing.com/licensees/index.asp

Also see: http://www.mp3licensing.com/royalty/emd.html
"No license is needed for private, non-commercial activities not generating revenues, or .. entities with associated annual gross revenues less than $100,000."

If PMN goes commercial, they may have to pay the annual $3,000 fee. As far as individual artists go, I'd imagine the majority will stay under the $100K ceiling in sales.

[mongrel]

Good roundup of information Erika. Thanks. I can rest easy knowing that I have a ways to go before I have to start worrying about the $100K cap!