It makes sense. Did you guys ever take a look at the license fees for the relatively ancient MPEG2 codec? They are very high (IIRC $3.00 per software unit sold with no cap). H.264, Motorola lawsuit aside is a bargain in comparison. There are also license fees associated with licensing the slightly better than ROT13 encryption DRM that some DVDs have. This fees can easily amount to a billion dollars for a company with as much gross sales as Microsoft.