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MPEG - based on Apple's QuickTime file format - is under threat in Asia, with China now declaring it will produce its own format in association with Microsoft, IBM and Phillips, c|net Asia reports. China's move could significantly affect products such as 3G cell phones, home video discs and PCs. The major issue is MPEG-LA's licensing fees for MPEG. In reply, China plans to develop AVS (Audio Video Standard), which will cost Chinese AV equipment producers on $US0.12 per device, rather than the much higher MPEG fees, which can be as high as $US1.00. In an attempt to avoid licensing fees, Chinese enterprise and government have welcomed Linux, with official support for open-source efforts. Analysis: Not surprising, although when the article's author says that "China is keen to move its IT infrastructure away from the dominance of Western companies", where, precisely, does it think IBM, MS and Phillips come from? States are, of course, free to choose what standards they wish to support, as well as introduce competing standards. But it's more than a little hypocritical when China, Taiwan and Hong Kong are huge piracy production centers. Prior and subsequent to China's 2001 entry into the WTO, the PRC government made token efforts to crack down on intellectual property theft (by arresting guys in markets selling pirated DVDs, essentially). That doesn't even scratch the surface. Essentially, because it's impossible to prove you're not using MPEG technology (or whatever) in your business, it's not an easy thing to 'pirate'. As a result, China's developing its 'own' standard so as not to get into hot water with the US over WTO intellectual property rules.
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