So I googled that text and found it is attached to EULAs for all sorts of hardware and software including the common editing programs used here. There are similar worded for MPEG-4 and H.264/AVC formats as well.
I visited the MPEG LA website and they were just as cryptic (legal-eeze is always written in such baffling terms). But reading their “In the News” section, a couple of DVD manufacturers have been approached for infringements. Allthough most of the judgements appear to be against those selling products using hardware, it is very hard to tell if this applies onlyto the material used to create (hardware, software, media) or if it covers the created product as well.
http://www.mpegla.com/index1.cfm
