Mozilla gives a $100K grant towards an open video format for the web
techcrunch.com
techcrunch.com
The downside of Theora is that its compression quality is a generation behind H.264 or the latest Windows Media codecs. But web users in general are not sticklers about video compression artifacts: YouTube was for a long time limited to 320*240 video compressed with Sorenson Spark (a H.263 variant of worse quality than Theora), and that didn't hinder its success. If wide support by next-generation browsers makes it possible to start delivering compelling content in Theora, it has a chance.
(Here's an interesting mini white paper about the codec patent situation: http://www.vcodex.com/videocodingpatents.html )
Worse, there's the possibility of submarine patents that are not included in the H.264 pool. Qualcomm has already attempted to sue Broadcom for making H.264-compliant products that allegedly infringed Qualcomm patents (which Qualcomm had not disclosed when H.264 was being developed). They lost the case, but the US Court of Appeals specifically limited the scope of those patents' unenforceability only to products which are covered by a H.264 license. That means Qualcomm is still free to sue for any independently developed non-H.264 codecs that might be similar enough.
But this requires the Flash plugin, hence the desire for a <video> element and such (as we'll see in HTML5).
Generally, there are licensing fees for each codec (e.g. H.264) which are licensed by software companies for use within their products. The open source implementations of such codecs are in a legal grey area, as technically compiling them means you should pay for their licensing.
Either YouTube uses these formats without a license, or they pay up. They may use commercial encoding software which includes a license, or they may use an open-source encoder and pay for the license separately. YouTube is a big target for a patent infringement lawsuit, so I'd guess they do pay up.
or does it not matter if it's FOSS?
http://www.boingboing.net/2007/12/09/nokia-to-w3c-ogg-is.htm...