Video-compression provider On2 Technologies is taking a swing at MPEG-4, complaining that companies cooperating to create a digital media standard may run afoul of antitrust laws.
New York-based On2 said Tuesday that it has sent letters to the Department of Justice and all state attorneys general, asking them to review the legality of a proposed MPEG-4 patent pool and to make a ruling as to whether it's anti-competitive. On2 offers a competing technology that it is pushing as an alternative video standard.
"MPEG-4 is trying to monopolize the substantially software-based interactive video compression industry, plain and simple," On2 wrote in its position paper to the Justice Department. "It is a move by a few very large companies to dominate a market and fix prices. Recent pricing policies by MPEG LA for MPEG-4 and the customer reaction to them are ample evidence of this."
News source: Cnet