[charcircuit]

This is for patent licensing. Using an open source implementation doesn't get rid of your obligation to license the patents for it.

[adrian_b]

In most countries the H.264 patents have already expired, for instance in Europe they have expired, but in USA not yet (in USA most patents should expire towards the end of next year).

So that firm might try to squeeze every penny they can before the expiration of the patents.