In 1988 the International Standardization Organization (ISO) established the Motion Picture Expert Group (MPEG) to develop a digital coding standard for video and audio signals in order to enable interactive video and audio signals on digital storage media.

The MPEG Audio Group started with members from 14 research institutions in order to develop a digital audio coding standard guided by a chairman.

As a result the MPEG-1, Layer I, Layer II and Layer III coding standards have been developed and proposed for coding of stereo audio signals at 2 x 192 kbit/s, 2 x 128 kbit/s and 2 x 64 kbit/s in 1992.

Later, the abbreviation "mp3" or "MP3" was introduced in order to substitute the long name of the successful MPEG-1, Layer III coding standard.

France Telecom, Telediffusion De France, Philips Electronics, and IRT - Institut fur Rundfunktechnik (the Research and Development laboratory of the German speaking Broadcasters) developed essential parts of the MP3 technology and patented them.

Sisvel and AudioMPEG obtained  from these companies the exclusive right to license MP3 players

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