According to a recent report, AT&T has claimed that it owns the patent on the MPEG-4 file format, which is the most compatible online and portable video file type. This could turn into a legal battle and standardization nightmare as the MPEG-4 format is used by Apple and a number of other video content providers - thus paying up may be costly. As a result companies may turn to other formats that are nearly as compatible, which could cause a sea of non-standard video formats to save royalty payments to AT&T. Ultimately, I fear this ordeal could cause consumers confusion, distrust and eventually adoption fatigue.
For other blogosphere perspectives on the AT&T MPEG-4 patent claim check out the post on floccinaucinihilipilificate.com and the Patent Blog.
