What is MP3 (Continued)

Strictly speaking, MP3 specifies how to decode a file and what format the file needs to be in, but it does not say how to encode it. This is very interesting and useful. It allows for new (superior) methods of encoding MP3s while retaining backward compatibility. This also means that there are variations in quality amongst MP3 encoders (see What it is Not Good For).

The MP3 specification was created through the cooperation of several groups. The group that codified the specification and maintains its as an international standard is the ISO (International Standards Organization, each standard is associated with a document number, MP3 is ISO 11172-3 and ISO 13818-3). However, as is often the case with standards, some company initiated the core technology for the standard. In the case of MP3 that company is The Fraunhofer Institute (and their partners Thomson Multimedia). They began their work within a project (in 1987) called EUREKA, EU147, Digital Audio Broadcasting and continued in a join venture with the University of Erlangen (with professor Dieter Seitzer).

Today, although MP3 is an international standard, Fraunhofer still hold patents on much of the technology. If another company wishes to use MP3 technology, they must pay Fraunhofer a license fee (because Fraunhofer can demand a high license fee, large companies are better able to afford the technology than small developers).