CNET News.com: MP3 rival attempts to shield developers

“The group of programmers trying to create an open-source
alternative to the MP3 format is going nonprofit, hoping to raise
funds and give developers legal cover in an increasingly litigious
online music world.”

“The team behind the Ogg Vorbis format has created the Xiph
Foundation, which will serve as a nonprofit parent for the
open-source development efforts. The programmers are trying to
create a format for online music that will carry none of the patent
license fees associated with MP3 and other proprietary
technologies.”

“The foundation is designed partly to raise money for the
project, which has been without steady funding since Net radio
station and erstwhile parent iCast closed its door. The development
efforts are now being supported through a few donations and the
personal savings of the people involved.”

“But the nonprofit status also should help the project establish
a foothold in the corporate world, where developers hope to see the
technology supported inside music player software, video games and
devices. This requires some guarantee of longevity and legal
stability for the project, as the team is going up against the
interests of powerful corporations that own rights to the dominant
online music formats.”

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