Also, w.r.t. patented algorithms, any commercial chip that implements the encoding/decoding that is patented would already have paid the patent licensing fees. So this actually seems like a way to work around that particular problem by offloading the patent encumbered process from legally questionable software (in the US anyway) that may be patent infringing to hardware that has already paid the licensing feed.
Or maybe I don't understand this very well.
Note: I'm not advocating software/math patents at all (which is what any patent on an encoding/decoding algorithm inevitably is), but simply providing another P.O.V. that a commercial entity might be interested in.