This only seems to apply to non end users. An enduser still has license free use.
Also, this only seems to apply to a Fraunhofer licensed MP3 encoder and not all the others which have been written to comply with the MP3 standard.
All this means is that if there is a free player out there, the author will need to pull out licensed code and insert something else.

It is thiers, so that can charge for it. We just don't have to buy it!

Notice also that the minimum annual license fee is 15K !!!!!