This excerpt from Microsoft's EULA for Windows Media Player 10
3.4 NOTICES REGARDING THE MPEG-4 VISUAL STANDARD. The Client OS Components include MPEG-4 visual decoding technology. This technology is a format for data compression of video information. For this technology, MPEG LA, L.L.C. requires this notice: USE OF THIS PRODUCT IN ANY MANNER THAT COMPLIES WITH THE MPEG-4 VISUAL STANDARD IS PROHIBITED, EXCEPT FOR USE DIRECTLY RELATED TO (A) DATA OR INFORMATION (i) GENERATED BY AND OBTAINED WITHOUT CHARGE FROM A CONSUMER NOT THEREBY ENGAGED IN A BUSINESS ENTERPRISE, AND (ii) FOR PERSONAL USE ONLY; AND (B) OTHER USES SPECIFICALLY AND SEPARATELY LICENSED BY MPEG LA, L.L.C. If you have questions regarding these Notices, please contact MPEG LA, L.L.C., 250 Steele Street, Suite 300, Denver, Colorado 80206; Telephone 303 331.1880; FAX 303 331.1879 www.mpegla.com
You are not allowed to watch any MPEG4 encoded video that you paid for (ie., no video from sites you paid for access to) nor are you allowed to sell MPEG4 videos.
Once again, the EULA and DRM dictates how you are allowed to use the hardware and internet services you paid for. I understand the selling part, but buying? Isn't the onus upon the seller to comply with proper liscensing of MPEG-4 for the purpose of encoding for resale?