H.264 patents are not expiring yet, if anyone was wondering. 2027 seems to be when that happens. On the other hand, I believe H.263 patents already expired, and MPEG-4 ASP (DivX etc.) is expiring this year.
What does it mean for developers that it is patented?
In other parts of the world (like large parts of Europe, for example) software patents are practically unenforceable and you can probably distribute your code as you see fit. Code is still copyrightable, so you can't just redistribute someone else's library, but your own code does not violate their copyright.
Some greedy American companies will probably still sue you if you do, hoping to enforce their patents regardless or at least scare you into paying them, but at legally you _should_ be in the clear.
When it comes to dedicated hardware for an algorithm, though, like hardware accelerated video codecs, you'll likely run into patent trouble in most of the world if you choose to build your own hardware for a patented system.