MPEG Layer 3
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MPEG Layer 3, or MP3 for short, is a lossy compression format for audio data. Files encoded in this format are often referred to as "MP3"s.
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Rights to the MP3 format are owned by the Fraunhofer Society, and anyone wishing to release (a) software or hardware supporting MP3 audio, or (b) content encoded in the MP3 format must obtain permission from Fraunhofer (usually in the form of a paid license). (For related reasons – usually license conflict – free software often does not support MP3 directly.) Because of this restriction, significant effort has been put into developing free alternatives, most notably Ogg Vorbis.
Reference
- Wikipedia
- MP3 Licensing official site
- Fraunhofer IIS division MP3 page