The motivation for creating the PNG format was the realization, in early 1995, that the Lempel–Ziv–Welch (LZW) data compression algorithm used in the Graphics Interchange Format (GIF) format was patented by Unisys. There were also other problems with the GIF format that made a replacement desirable, notably its limit of 256 colors at a time when computers able to display far more than 256 colors were becoming common.

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