Strange statement of Nokia regarding codecs

“[…] including a W3C-lead standardization of a “free” codec, or the active endorsement of proprietary technology such as Ogg, …, by W3C, is, in our opinion, not helpful for the co-existence of the two ecosystems (web and video), and herefore not our choice.”

Why would it be “not helpful” to standardize a free codec? And why do they call it proprietary?

Source: http://www.w3.org/2007/08/video/positions/Nokia.pdf

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