Development of new codecs is often hindered by licensing and patent issues. So the top tech giants form the Alliance for Open Media to create an open source, royalty-free video format. It means any company will be able to develop software for creating or converting video in the format without paying fees.

According to a blog post from Mozilla, the alliance is planning is to release the standard under the Apache License 2.0, which is the most permissive open source license available.

Netflix, Mozilla, Microsoft, Intel, Google, Cisco and Amazon are forming the Alliance for Open Media to create a new open source video format. The alliance includes all three major web browser developers and some of the biggest names in online video.

Mozilla said in a statement regarding the Alliance for Open Media:

“The Web was built on innovation without asking permission, and patent licensing regimes are incompatible with some of the Web’s most successful business models.”

Top tech giants form the Alliance for Open Media and together they will pool their knowledge and expertise to meet the growing online demand for “top-quality video, audio, imagery, and streaming across devices of all kinds and for users worldwide.”

The new video format could make it easier for web giants to get rid of Adobe Flash. Top tech giants form the Alliance for Open Media and together they seeks to create a new video compression technology by 2016 or 2017.

It will be designed for best use of the networks that deliver videos to Tabs, smartphones, PC, gaming consoles, TVs and streaming-media devices. It will also support copy protection, which will be helpful for companies like Netflix.

Top tech giants form the Alliance for Open Media and it is a part of the Joint Development Foundation, an independent non-profit organization assisting initiatives like these with legal and corporate infrastructure. If you are interested to learn more about it you can read it on their official website.