I have read through the addendum 1 supplied by e.Digital to the DRM agreement. It is a completely outlined system for data security...from encoding to final hard drive placement. "This document outlines the technology EDIGITAL Intends to use to protect the multi media content to be stored in a closed system portable entertainment device." IMO....addendum 1 is a full development option...25k would not cover what is outlined in this addendum. e.Digital handles everything with regard to addendum 1. Production...first level of security....a specialized proprietary bit stream is added at encoding...applied to ISO MEPG4...."by modification of file container and content bit stream" This bit stream must match the final PED(personal entertainment device)processor or it will not play. I note that the container file is proprietary for this development. It is explained in the formal pages of the DRM agreement that the container file will be .avi...not proprietary. Post production...second level of security....for this, they supply a very elaborate process for the container encryption allowing the management of the files during the distribution process. Data loading...third level of security...that requires a special complementing authentication application of the delivering PDL(portable data loader or PC)enabling communication to the PED(personal entertainment device)I/O(input/output). Through the authentication process...the post production encrypted files are place on the final device maintained in their encrypted state. Hard drive security fourth level of security....even though the files within are specially encoded and encrypted....in the event a hard drive is stolen, the data on the hard drive is scrambled with a proprietary algorithm..... The question...is addendum 1 some form of option? The formal agreement reads.... " eDigital will develop and/or adapt PC application to encrypt AVI files with source code and deliver this to DIGECOR" It was mentioned that DigEcor already have aspects already covered...yet addendum 1 is a complete package. Cassie "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." seems you are some what inaccurate...and we do not have all the facts. http://www.agoracom.com/ir/edigital/message/507870 doni