Jon Iverson

How much does it cost to license DVD-Audio patents to create players or discs? That information was revealed last week when the DVD6C Licensing Agency, which represents the founders of the DVD Forum (formerly called the DVD Consortium) in the area of patent licensing, announced that it expects to start global licensing of essential patents for DVD-Audio and recordable DVD products on or about January 1, 2003.

At present, the recording industry is based on a variety of analog and PCM digital audio formats, putting proponents of Super Audio Compact Disc (SACD, which is based on the Direct Stream Digital, or DSD, format) in a tough place when it comes to creating pure DSD works for showing off the format. To date, labels have had a limited number of options for creating, mixing, and mastering pure DSD projects.

The latest figures for the music industry remain grim: Online sales of recorded music have dropped 20% through the first half of 2002 compared with the same period last year, losing ground faster than the overall US music market, which lost 7% during the same period, according to the Recording Industry Association of America (RIAA). And the trend is accelerating. The latest numbers show online sales down 25% in the third quarter over last year.

One would think the last thing the music industry needs right now is to further alienate its customers who are still buying discs. But that is just what the record labels are doing by secretly experimenting with technology that restricts how discs are used, says a new report.