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MacWorld UK reports that the MPEG-4 Industry Forum completed interoperability testing... which means that MPEG-4 Video encoded with different products will be playable by any decoder:

MPEG-4 offers something that RealNetworks and Microsoft dont: choice. If you want video coding technology from Microsoft, then Microsoft is your vendor. With MPEG-4, theres a choice of multiple vendors

According to the article, the MPEG-4 Industry Forum "is positive that the [licensing] issue will be resolved."

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