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IP law, especially defence against submarine patents, makes codec development expensive. In the early days of MPEG codec development was difficult, because most computers weren't capable of encoding video, and the field was in its infancy. However, by the end of '00s computers were fast enough for anybody to do video encoding R&D, and there was a ton of research to build upon. At that point MPEG's role changed from being a pioneer in the field to being an incumbent with a patent minefield, stopping others from moving the field forward. |
As long as IP law continues in the same form, the alternative to that is completely closed agreements among major companies that will push their own proprietary formats and aggressively enforce their patents.
The fair world where everyone is free to create a new thing, improve upon the frontier codecs, and get a fair reward for their efforts, is simply a fantasy without patent law reform. In the current geopolitical climate, it's very very unlikely for nations where these developments traditionally happened, such as US and western Europe, to weaken their IP laws.