VLC is completely free software. It uses patent-encumbered (but free) codecs, which are needed to play patent-encumbered formats. There are companies such as MPEG LA which collect patents. These are called patent trolls, and are very harmful to free software developers.

If you are making your own videos, please use a patent-unencumbered format such as ogg or webm. See http://www.fsf.org/campaigns/playogg/en/ for more information.

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