nuanced, tl;dr version: A party can sue anyone for anything. I could sue you today for killing my cat, even if I never owned a cat. Barratry is not illegal in the United States; this is part of why the patent system is becoming dysfunctional. Xiph commented in detail on this problem in an advisory whitepaper paper to the FTC:
http://xiph.org/press/2011/ftc/ftc-comments-20110614.pdf
Good or bad, unless your business is out united states, you have to abide by the laws of this country. The day I get sued, my defense cannot be, "Judge, people get sued all the time. Please let me off the hook." Typical patent litigation costs which includes a jury (as it often does when a big company is sued), runs into millions of dollars. This is *before* any damages that may have to be paid. Yes, companies do leverage their patents, sometimes unfairly against some parties. Part of the solution to it is to have RAND licensing: reasonable and non-discriminatory terms. This means that you get charged what everyone else gets charged. This is a condition of participation in many standards groups. So if you use one of these standards, you know you at least can get a reasonable license.
Not so with Vorbis and the rest of the so called "open source" technologies. Since no major patent holder is consulted or paid for their use, nor are there any RAND terms in play, when the day of reckoning comes, the costs may easily put you out of business.
Look at the mess Google is in with Android. They had to pay $12.5 *billion* dollars to buy Motorola's cell phone division just to get their patent portfolio. And the major bidding war to buy patent portfolios before that. They did that because unlike you, they are not just hoping the FTC will bail them out or complaining about unfairness of the US law. Those will be reasonable defenses to make, especially against foreign companies but they won't be sufficient as anyone who has had to look at the Apple, Oracle and Microsoft attorneys in the eye can attest.
To be fair, I absolutely share your sentiments that this is a broken system when it comes to allowing innovation at some level. But as I said, we live in this country and we have to live by its laws. And therefore, you work to get yourself better situated. While we were developing our own compression algorithms at Microsoft, we also contributed to major standards and sat at those tables to establish their rates. By making sure those were reasonable, then comparative solutions otherwise would potentially cost less to license. In that manner, we helped you without you even knowing it!
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Vorbis itself was searched and vetted in 1999/2000 by Ed Kelly at the direction of iCast (the primary sponsors of the Ogg project before Xiph incorporated). He issued a formal opinion of non-infringement.
That is good in that you won't be accused of willful infringement and subject to treble damages. But will amount to nothing the day I am sued and have to defend myself without you or that attorney defending me for free.
This vetting process has since been repeated, in my personal direct knowledge, by Mozilla and Google... and apparently Microsoft: They've been shipping Vorbis in games since 2000. Several changes we made to libvorbis were at Microsoft's request.
Microsoft games <> Microsoft. Please don't confuse the two. When I was there, my group would constantly be educating people who are confused by marketing collateral such as your FAQ thinking open source = patent free. Sometimes they would be pretty far down the road before we would stop them and remind them of the huge liability they were creating for the company. I don't know who does that or how careful they are since I left four years ago.
The best test of any of this is whether you personally stand behind anyone getting sued. It is clear you are not.
Vorbis is installed on most desktop PCs in the field today, owns the gaming market, a large fraction of mobile and embedded devices, and more than 100 makes of portable player. It is possibly the most widely deployed codec in history (if you count all applications, not just music). There have been no lawsuits.
First of all, you would not know about all the "lawsuits." It is not like you are a licensing and provide an indemnity and hence will be called on every one of them. For all you know, folks could have gotten threatening letters and settled. Your contention that most desktop PCs ship with it is also substantiated. Windows doesn't ship with it and neither does the Mac OS. So you are at the mercy of some app the OEM may have installed. I doubt that there are many of those that include Vobis. As to 100 makers of portable players, that is nothing compared to AAC, MP3 and WMA whose device counts is into thousands. But yes, you have achieved some success with it and in that regard, are protective of that franchise. I get that. But you can have all the people in the world shipping it but it does not matter the day *I* get sued. The fact that five other guys shoplifted, doesn't become my defense for shoplifting.
No. It is against standard industry practice. Ask MPEG-LA about indemnification some time.
It is not against industry practice. There are technologies that are provided with indemnity. Or equiv. thereof. Have your attorney explain what "non-assert" means. This is a provision where if you are a licensee of a technology as such, you cannot sue other licensees (non-assertion against other licensees). This means that if a standard becomes very popular, the universe of people who can sue you becomes extremely small. It essentially takes out all the major companies out of the running and leaving you with so called "patent terrorists" to come and after you. These are individuals/law firms that buy patents and try to monetize them by holding you hostage until you pay.
There is no non-assert for open source. You are given something for "free" but in return you shoulder all the risks. In many areas, such as generic software, that is very manageable. Not so in signal processing where the way every electron moves is often patented! Or claim to be patented. I have lived this world. You say you have never been sued or know about a suit. Well, then you don't have the education. You did not work for a big company that was a popular target so had to come up with solutions and strategies to deal with these things.
I'll take our own legal counsel and a 14 year track record over a Wikipedia article.
You should but the fact that Wiki says what it says, and you are aware of it and its references to detailed discussions on patents that Vorbis may be stepping on, may create some issues with respect to the non-willful infringement defense. So you may want to check with your attorney on that. If you have and he is OK with it, then that is cool.
That's correct. Patent law has no provision for the legally binding statement you're demanding. Surely you knew that before you asked the question.
I am not an attorney but if I got sued and had shipped the software based on assurances you provided in your FAQ that I would never ever have to pay anyone, if you had any assets, I might try to pull you in to help share in my costs.
Oh, and "I am not a licensed attorney; none of the above should be treated as legal advice or counsel."
It won't be. But if I were you, I would not engage in any such discussions. I would get what my attorney wants me to say, which may turn out to be nothing, and leave it at that. Indeed, I feel bad that I have gotten this deep into the topic as I honestly do not want any harm to come to you or your technology. All I wanted to know was that if my impression of the old you where you thought open source meant litigation free was still true. I have that answer. You are much more sober and realistic now
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