Home Theater: Are MP3's Days Numbered?

An unexpected legal snafu may have makers of music players and ripping software shelling out bigtime for MP3 or possibly even abandoning the popular audio codec. At the heart of the storm is Alcatel-Lucent, a networking-equipment company and heir to the legacy of Bell Labs. Alcatel claims that Bell brought two key patents to the table when Bell joined the Fraunhofer Institute of Germany and Thomson of France in developing the MP3 format as the audio soundtrack of the now-forgotten MPEG-1 video standard. This claim is a surefire money maker. Alcatel has already persuaded the federal district court of San Diego to hit Microsoft with $1.52 billion in damages for the use of MP3 in the Windows Media Player. That's half a percentage point of the value of all Windows PCs sold. Ironically, WMP didn't begin supporting MP3 till 2004 with Version 10; before that MP3 ripping was a third-party plug-in. Microsoft will appeal, arguing that one of the two disputed patents does not apply to WMP and the other was covered when Gates & Co. paid Fraunhofer $16 million to license MP3. Before you get all giggly and anti-Redmondian, consider the fact that iTunes also offers MP3 ripping, and that iTunes purchases in AAC account for only a tiny percentage of all iPod-stored content. If Steve Jobs wants to keep his gravy train rolling, he'll have to fork over too. As will every purchaser of every MP3-compatible product. Pray for Microsoft.

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