MPEG Patent Pool a Royalty Goldmine

According to a February 16, 2005 article in IP Law and Business, the MPEG-2 patent pool has been "a royalty gold mine."

"Each time a DVD player is sold, the pool receives $2.50 for the MPEG-2 decoder the player contains. Each time a prerecorded DVD disc is sold, the pool pockets 3 to 4 cents. These royalties are split among the patent holders in the pool, and MPEG LA takes a 10 percent cut, according to one person with knowledge of the company's business model."

Since MPEG-2 launched in 1997, MPEG LA has formed six pools, all related in one way or another to video.