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Though proponents of newer codecs such as WMA and RealAudio have
asserted that their respective algorithms can achieve CD quality at 64
kbit/s, listening tests have shown otherwise; however, the quality of
these codecs at 64 kbit/s is definitely superior to MP3 at the same
bitrate. The developers of the patent-free Ogg Vorbis codec claim that
their algorithm surpasses MP3, RealAudio and WMA sound quality, and
the listening tests mentioned above support that claim. Thomson claims
that its mp3PRO codec achieves CD quality at 64 kbit/s, but listeners
have reported that a 64 kbit/s mp3PRO file compares in quality to a
112 kbit/s MP3 file and does not come reasonably close to CD quality
until about 80 kbit/s.
MP3, which was designed and tuned for use alongside MPEG-1/2 Video,
generally performs poorly on monaural data at less than 48 kbit/s or
in stereo at less than 80 kbit/s.
Licensing and patent issues
Thomson Consumer Electronics controls licensing of the MPEG-1/2 Layer
3 patents in countries that recognize software patents, including the
United States and Japan, but not EU countries. Thomson has been
actively enforcing these patents. Thomson has been granted software
patents in EU countries and by the European Patent Office [1], but it
is unclear whether or not they would be enforced by courts there. See
Software patents under the European Patent Convention.
For current information about Thomson's patent portfolio and licensing
terms and fees see their website mp3licensing.com.
In September 1998, the Fraunhofer Institute sent a letter to several
developers of MP3 software stating that a license was required to
"distribute and/or sell decoders and/or encoders". The letter claimed
that unlicensed products "infringe the patent rights of Fraunhofer and
THOMSON. To make, sell and/or distribute products using the [MPEG
Layer-3] standard and thus our patents, you need to obtain a license
under these patents from us."
These patent issues significantly slowed the development of unlicensed
MP3 software and led to increased focus on creating and popularizing
alternatives such as WMA and Ogg Vorbis. Microsoft, the makers of the
Windows operating system, chose to move away from MP3 to their own
proprietary Windows Media formats to avoid the licensing issues
associated with the patents. Until the key patents expire, unlicensed
encoders and players appear to be illegal in countries that recognize
software patents.
In spite of the patent restrictions, the perpetuation of the MP3
format continues; the reasons for this appear to be the network
effects caused by:
familiarity with the format, not knowing alternatives exist,
the fact that these alternatives do not universally provide a definite
advantage over MP3,
the large quantity of music now available in the MP3 format,
the wide variety of existing software and hardware that takes
advantage of the file format,
the lack of DRM-protection technology, which makes MP3 files easy to
edit, copy and distribute over networks,
the majority of home users not knowing or not caring about the
software patent controversy, which is in general irrelevant to their
choice of the MP3 format for personal use.
Additionally, patent holders declined to enforce license fees on open
source decoders, allowing many free MP3 decoders to develop.
Furthermore, while attempts have been made to discourage distribution
of encoder binaries, Thomson has stated that individuals using free
MP3 encoders are not required to pay fees. Thus while patent fees have
been an issue for companies attempting to use MP3, they have not
meaningfully impacted users, allowing the format to grow in
popularity.
Sisvel S.p.A. [2] and its US subsidiary Audio MPEG, Inc. [3]
previously sued Thomson for patent infringement on MP3 technology[4],
but those disputes were resolved in November 2005 with Sisvel granting
Thomson an MP3 license. Motorola also recently signed with Audio MPEG
to license MP3. With Thomson and Sisvel both owning separate patents
which they claim are needed by the codec, the legal status of MP3
remains unclear.
The Fraunhofer patents expire April 2010, at which time MP3 algorithms
become public domain.
