I dug around the MPEG4 LA website and found this from a powerpoint on 
their FAQ page: http://www.mpegla.com/m4v/m4v-faq.cfm

Here's my non-lawyer take on it:
-If you are charging per title, and content is less than 12 minutes 
long, no royalty. Otherwise, its something like 2 cents per title.
-If you are charging via subscription, and you have less than 100,000 
subs, no royalty.
-If you are doing a "free internet broadcast", then no royalty until 2008

Otherwise, once you have a decent audience size and are making money, 
you'll have to pay up. Doesn't seem too draconion to me, though it could 
become a mild pain to worry about for micro-commercial-content producers.

+Nathan

****************
Where End User pays for MPEG-4 Video
Title-by-Title - 12 minutes or less = no royalty; >12 minutes in length 
= lower of (a) 2% of first Arm’s-Length Sale or (b) $0.02 per title. 
Licensees are (a) replicators of physical media and (b) direct sellers 
of other media.
Subscription (not Title-by-Title): 0-100,000 subs/year = no royalty; 
 >100,000-250,000 subs/year = $25,000; >250,000 – 500,000 subs/year = 
$50,000; >500,000-1M subs/year = $75,000; >1M – 5M subs/year = $100,000; 
 >5M – 25M subs/year = $200,000; >25M subs = $300,000
Where remuneration is from other sources
Free Television (not Title-by-Title, Subscription or Free Internet 
Broadcast) - one-time fee of $2,500 per transmission encoder
Free Internet Broadcast (not Title-by-Title or Subscription) – no 
royalty during first term (through 2008; not greater than Free 
Television thereafter)
Enterprise cap - $3 million per year
Royalties payable on products from January 1, 2004
**************

More here: http://www.mpegla.com/m4v/m4v-faq.cfm


Verdi wrote:

>For those of you using MPEG4 or H.264 - check out the QuickTime user  
>agreement related to commercial uses (if you are thinking of that):
>
>< http://www.apple.com/legal/sla/quicktime7.html >
>
>
>14. Use of MPEG-4. This product is licensed under the MPEG-4 Systems  
>Patent Portfolio License for encoding in compliance with the MPEG-4  
>Systems Standard, except that an additional license and payment of  
>royalties are necessary for encoding in connection with (i) data  
>stored or replicated in physical media which is paid for on a title  
>by title basis and/or (ii) data which is paid for on a title by title  
>basis and is transmitted to an end user for permanent storage and/or  
>use. Such additional license may be obtained from MPEG LA, LLC. See  
>http://www.mpegla.com for additional details.
>
>This product is licensed under the MPEG-4 Visual Patent Portfolio  
>License for the personal and non-commercial use of a consumer for (i)  
>encoding video in compliance with the MPEG-4 Visual Standard ("MPEG-4  
>Video") and/or (ii) decoding MPEG-4 video that was encoded by a  
>consumer engaged in a personal and non-commercial activity and/or was  
>obtained from a video provider licensed by MPEG LA to provide MPEG-4  
>video. No license is granted or shall be implied for any other use.
>
>Additional information including that relating to promotional,  
>internal and commercial uses and licensing may be obtained from MPEG  
>LA, LLC. See http: //www.mpegla.com. For answers to frequently asked  
>questions regarding use fees under the MPEG LA Visual Patent  
>Portfolio License see www.apple.com/mpeg4 or www.apple.com/quicktime/ 
>pro/faq.html.
>
>15. H.264/AVC Notice. To the extent that the Apple Software contains  
>AVC encoding and/or decoding functionality, commercial use of H.264/ 
>AVC requires additional licensing and the following provision  
>applies: THE AVC FUNCTIONALITY IN THIS PRODUCT IS LICENSED HEREIN  
>ONLY FOR THE PERSONAL AND NON-COMMERCIAL USE OF A CONSUMER TO (i)  
>ENCODE VIDEO IN COMPLIANCE WITH THE AVC STANDARD ("AVC VIDEO") AND/OR  
>(ii) DECODE AVC VIDEO THAT WAS ENCODED BY A CONSUMER ENGAGED IN A  
>PERSONAL AND NON-COMMERCIAL ACTIVITY AND/OR AVC VIDEO THAT WAS  
>OBTAINED FROM A VIDEO PROVIDER LICENSED TO PROVIDE AVC VIDEO.  
>INFORMATION REGARDING OTHER USES AND LICENSES MAY BE OBTAINED FROM  
>MPEG LA L.L.C. SEE HTTP://WWW.MPEGLA.COM. 
>
>
>
> 
>Yahoo! Groups Links
>
>
>
> 
>
>  
>


-- 
+my life: http://nathan.freitas.net
+my videoblog: http://openvision.tv/itcamefrombrooklyn
+my cause: http://tibetwillbefree.blogspot.com
+my skype: nathanialfreitas 
--

Find and watch unique internet video through my original software:
I/ON Internet Video Console at http://openvision.tv



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