"Studio approval requires multiple layers of security covering their content at all stages. The document describing the DRM that e.Digital developed is called Content protection in a Closed System Portable Entertainment Device and is Addendum One to the DRM Agreement. It describes three primary protection layers:" 1. "Physical Security: The means by which the physical mediacontaining the content is protected." This would be the encrypted hard drive...or whatever media e.Digital feel they need protect in this manner. 2. "Encoding: Security that is implemented during the encoding process at the encoding house." A specialized bit stream added at encoding that is matched to a specific processor scheme...This may or maynot have been DivX in the DigEplayer. For this agreement DivX is out...Digecore wants encoding to be standard .avi files....with a specialized bit stream. DevX wants a standard .avi format eliminating DivX and DivX security...should e.Digital give it for free? That is basically what DigEcore wants...A free secure standard 3. "Encryption: Digital security applied in the form of encryption algorithms." Post production file encryption and key management for handling the files prior to being loaded to secure media of a device. "The encryption scheme that e.Digital adapted for and licensed to digEcor is based on the Advanced Encryption Standards (AES) algorithms. The technique used is the e.Digital Random Block Encoding (RBE) utilizing 128-bit AES encryption to encrypt random blocks of data within the MPEG-4 at random intervals. There are additional schemes described in the 9-page document, so the above is just the gist of it. Because digEcor already has studio approval for its physical security and encoding facility security, the DRM Agreement seems to license mainly the encryption security from e.Digital." "physical security"....would be item 1 from above....if they already have it... why do they need e.Digital for item 1? "encoding facility security"......would be item 2 from above...again if they already have their encoding and specialized bit stream approved...why do they need e.digital for item 3 is still there....for a post production process. doni