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"Patent encumbrance is one of the driving forces behind the HTML 5 video codec controversy. The patent licensing requirements mean that H.264 codecs can’t be freely redistributed, making the format a non-starter for Mozilla and most other open source browser vendors. Opera also objects, saying that the licensing fees are too high. Mozilla and Opera strongly advocate Ogg Theora as an alternative because its freedom from known patents could ensure that there are no licensing barriers that prevent ubiquitous adoption. Apple objects to Ogg Theora, claiming that the lack of known patents on Theora doesn’t rule out the threat of submarine patents that could eventually be used against adopters. Apple is also concerned about the lack of widespread support for hardware-based Theora decoding, a factor that diminishes the format’s viability on mobile devices. Google shares Apple’s skepticism about the potential of Theora in the marketplace. The search giant claims that Theora’s lack of quality relative to H.264 will make it an impractical choice for large-scale streaming video services such as YouTube."

Decoding the HTML 5 video codec debate - Ars Technica