Google is adopting the BSD license for WebM in order to address a licensing conflict. When Google opened up the VP8 codec and announced the launch of the WebM project during the Google I/O conference last month, the actual license under which the code was distributed was not an official open source software license.

The Xiph.Org Foundation is pleased to announce its support of the WebM open media project as a project launch partner. As announced earlier today at the Google I/O Developer Conference, the WebM format combines the VP8 video codec, the Matroska container, and the Vorbis audio codec developed by the Xiph into a high-quality, open, unencumbered format for video delivery on the Web.

From today, users will be able to download and install free software to play and encode the new WebM format. WebM is based on the Matroska container format -- replacing Ogg -- and the VP8 video codec which replaces Theora. Crucially, the Vorbis audio codec is part of the new WebM specification.

Google engineer John Koleszar asked the open source community for help optimizing the VP8 codec for the WebM project, Google's open source project for watching video online. In soliciting help, Koleszar gave a sort of State of the Codec Address regarding VP8, it's functionality and the headway he and his fellow programmers have made since the WebM announcement at Google I/O 2010.

Google has added an experimental branch to the VP8 code tree, encouraging developers to begin work on the next incarnation of its newly open sourced video codec.

Ever since Google announced its purchase of video codec company On2 in August 2009, there's been an expectation that On2's VP8 codec would someday be open-sourced and promoted as a new, open option for HTML5 video. An open VP8 would offer comparable quality to H.264, but without the patent and royalty encumbrances that codec suffers.

MPEG-LA/H.264, Apple, and Microsoft appear to be the only prominent opponents of WebM/VP8; The OSI explains why Google needs to refine the licence

Software patents FUD withstanding, the status of WebM as a Free/open source project is being actively addressed

As you probably know, a Google I/O conference was held today and a lot of blogs said they will announce big things. And big it was: Google officially announced the release of an open source, royalty-free video format called WebM which will be using the VP8 codec Google aquired from On2 as well as Vorbis audio.