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Dolby Buys MIT's DTV Vote for $30 Million

An anonymous reader writes "MIT's campus newspaper, The Tech is reporting that the university will be receiving $30 million from Dolby Laboratories. This payment is in return for MIT's vote on the "Grand Alliance" committee responsible for choosing the audio standard for digital television (DTV). Dolby also appears to have paid off Zenith, another committee member. The professor representing MIT on the committee stands to receive $8 million personally. But here's where it gets truly odd. After dutifully voting for the Dolby standard, MIT attempted to collect on the bribe, but Dolby refused to pay. So, MIT sued to collect. In the end, MIT and Dolby settled out of court. Says The Tech, "There's clearly a conflict of interest," [MIT's Jack] Turner, [associate director of the Technology Licensing Office] says, but, "it can't be avoided. MIT's reputation as being pure... in its academic evaluation of things is very important." Yeah sure."

28 of 190 comments (clear)

  1. She blinded me with... by Qui-Gon · · Score: 5, Funny

    8 million dollars!?

    --

    We are blind to the Worlds within us
    waiting to be born...
  2. It's so funny when people even ADMIT it... by Featureless · · Score: 5, Insightful

    "MIT's reputation as being pure... in its academic evaluation of things is very important."

    Apparently not.

    1. Re:It's so funny when people even ADMIT it... by BurKaZoiD · · Score: 4, Informative

      I work for a higher education institution as an application developer. The office I work in is more or less sandwiched between academic affairs and administrative affairs, so I'm privy to a good deal of information about various university dealings, even though I'm just a grunt low on the totem pole. Even though I see and hear alot of things that would piss off alot of parents trying to get their kids in school, something like this still shocks me. I love working where I work, but shit, higher education is one screwed up place. The politics are absolutely UNREAL. It still amazes me the power some individuals wield, especially when they shouldn't be in a position to wield ANY power at all.

      It's too bad I can't comment on some of the just plain wrong stuff I see going on, but I need my job.

      Ok, this post was worthless, mod me down. #;^)

  3. Makes you wonder... by Cid+Highwind · · Score: 5, Interesting

    ...how much money the MPAA has earmarked for bribes to get the signal encrypted.

    --
    0 1 - just my two bits
  4. The FCC is bungling DTV by dgp · · Score: 5, Interesting
    From DailyWireless:

    "It's lucky 3G spectrum wasn't available earlier in the United States or cell carriers would be dropping like flies. The bungled DTV system saved their ass.


    The FCC assigned a royalty sharing organization, ATSC, to deliver a "unified" Digital Television system. But ATSC had no motivation to use the improved European-developed COFDM DTV system now the world-wide DTV standard. Unlike ATSC, it works. You can get it free over the air or in a bus. I believe former FCC director William Kennard is to blame. He didn't want to slow down the "lucrative" 3G auctions. Now we're stuck with a broken DTV system, the VHF auctions are delayed (again), and everyone lost...except the cellular carriers.


    In the UK, all you need is a $99 box with rabbit ears. US broadcasters are stuck. They may eventually be forced into PPV and soft porn since only rooftop antennas can pick up ATSC. The FCC let this happen. It's criminal negligence."

    1. Re:The FCC is bungling DTV by Twirlip+of+the+Mists · · Score: 5, Informative

      You know, I do feel obligated to point out that ATSC-standard digital television signals using the 8VSB standard have been broadcast in the US full-time since 1998. You can receive 8VSB transmissions-- for free-- with nothing more than a decent pair of rabbit-ears, or, as in my case, with an inexpensive rooftop antenna. In my house, we watch at least six or eight hours of HDTV a week, and have been since the summer. Just last night, ABC broadcast Saving Private Ryan uncut and unedited in HDTV with, yeah, Dolby Digital sound.

      You can also get HDTV via satellite-- HBO and Showtime have HDTV channels-- and in some markets via cable.

      It's a gross exaggeration to say that the DTV system in the US is "bungled" or "broken."

      --

      I write in my journal
    2. Re:The FCC is bungling DTV by Anonymous Coward · · Score: 5, Insightful

      You sound like one of the rubes that believed all of the Sinclair propaganda.

      COFDM has it's advantages, but 8VSB was chosen for good reason - stronger signals over longer distances at the same power levels. This is a valid decision given the sub-urban nature of US viewers. CODFM is a convenient solution for multi-path issues in urban areas, but those advantages were rendered moot last year with the introduction of 3rd generation chipsets that reduce multi-path interference.

      Also, the European system ISN'T HIGH DEF. It's 16x9 standard def. It's comparable to our satellite and digital cable receivers.

      ATSC receivers will be the same price ($99) by next Christmas thanks to the FCC requirement for ATSC tuners to be included in sets larger than 34 inches. The cost of the chip sets are about $100 now. They should drop dramatically (to about $35) now that volumes will be increasing.

      The COFDM vs. 8VSB debate was ended 18 months ago among the DTV adopters. Put it to rest.

  5. What the hell is the point of a comittee? by Angry+White+Guy · · Score: 5, Funny

    Is everyone corrupt anymore?

    How do I sign up to be a comittee member so I can get bought with absolutely no reprecussions?

    --
    You think that I'm crazy, you should see this guy!
    1. Re:What the hell is the point of a comittee? by Angry+White+Guy · · Score: 5, Insightful

      Face it, there are no more bastions of ethics left. Gentlemen, leave your convictions at the door. They'll only get in the way as you try to grab all of those dollar bills.
      MIT has shown us the true 3 step business model:
      1) Build a seemingly immaculate and incorruptable reputation.
      2) Prostitute everything you worked so hard at.
      3) Profit!!!

      --
      You think that I'm crazy, you should see this guy!
  6. Bribery as acceptable business practice? by systembug · · Score: 4, Funny

    And Court sanctioned too. I'm somewhat speechless. You americans are a bunch of tough cookies.

    --
    The only skin on a computer should be porn.
  7. confucious says by ealar+dlanvuli · · Score: 4, Funny

    he who sleeps with big corperate monies is sure to get a STD.

    --
    I live in a giant bucket.
  8. How much?!? by natron+2.0 · · Score: 5, Interesting

    This is outrageous! They gave them that much money because they voted for thier product? Is Dolby Labrotories that concerned about competition? Last time I checked they pretty much had market cornered with thier audio playback standards, why wouldn'e anybody vote for them?

  9. Whats the point? by brejc8 · · Score: 4, Insightful

    Whats the point of having a committee where members openly bribe eachother?
    I was under the impression that MIT was there to represent the people.

  10. Quick scan of the article by Bobulusman · · Score: 5, Informative

    The MIT people choose the format they did because they would have made $8 million in royalties and the like. (This was 1993)

    Then, in 1997, they had a royalty dispute with Dolby over the royalties. The settlement out of court is the $30 million mentioned.

    The interesting part is that that 1993 decision helped make US digital tv use dolby instead of mpeg, like they apparently use in Europe

    --
    Cogito ergo sum in Slashdot.
  11. American origin a factor? by Blondie-Wan · · Score: 4, Insightful
    From the article:

    Other members of the Grand Alliance cited the Dolby system's American roots and its technical superiority over Musicam, not MIT's financial interest in Musicam's rejection, as the likely reasons for Lim's vote.

    Philips' Musicam system, also known as "MPEG," is related to the technology used in MP3 audio compression, and is the standard for digital television audio in Europe.

    "Jae Lim, independently of any deal, did not want the Philips system to win," said Robert Rast, the leader of the Grand Alliance's Technical Oversight Group, and then a vice president of a firm that was both an MIT partner and competitor, General Instrument Corp.

    "Jae was very pro-American," he said. "He would naturally favor an American system over a foreign system."

    "Jae knew he supported American solutions, so that deal was consistent with that," Rast said. "If it hadn't been consistent, I don't think Jae would have made the deal."

    Putting aside the more worrying issue of conflict of interest, why should whether the standard originated in America be a factor? I do understand the debate is over setting a standard for television in this country, but even so, shouldn't the only important considerations be the technical merits of the proposed standards? Why should it matter where a standard arose? Good grief, are they all suffering from "not invented here?"
  12. Royalty Payment, not out-and-out bribe by __aaahtg7394 · · Score: 4, Informative

    After reading the article, i'm a bit less outraged. The 30M$ is royalty payments, apparently on technology developed at MIT. The professor in question is the sole inventor, which is why they're giving hime 8M$ of it.

    Please read the article, it's actually a bit more of "Dolby tried to screw MIT out of royalties" instead of "MIT accepts bribe to vouch for Dolby standard."

    1. Re:Royalty Payment, not out-and-out bribe by dipipanone · · Score: 5, Insightful
      Please read the article

      Pot, kettle, black. Which parts of these paragraphs did you not understand?

      The settlement of a lawsuit over an MIT-Dolby royalty sharing agreement under which Dolby was slated to pay MIT if either's audio system proposal were accepted -- that is, if Philips Electronics' competing "Musicam" system were rejected -- placed Lim in the unusual position of receiving millions of dollars from Dolby partly as the result of having voted in favor of Dolby's system, over Musicam and MIT's own system, on a technical advisory committee to draft the industry's unified recommendation as part of a government-run national standardization process.

      "Any implication that Jae's decisions [were] biased by potential future royalties is totally wrong," he said. "We never cast a vote for a system that did not show itself to be superior based on third party test results," Preston wrote in an e-mail statement. However, Preston continued, "the MIT audio system performed best in the tests, and the Dolby [system] was nearly the same."
      The article clearly makes the point that the MIT system (the one that Jin invented, I assume) was technically superior, but Jin and Dolby carved out a deal between themselves that gave both Jin, Dolby and MIT a cut of the winnings, regardless of who won.

      Once the financial issues were stitched up, Jin was free to cast his vote with Dolby, despite independent tests showing that the MIT system was superior -- and his allies appear to be arguing that his motivation was patriotic rather than financial.

      Now in future, would you please not lecture other people unless you've read and understood the article yourself?
  13. Educational experience by mao+che+minh · · Score: 4, Informative

    You have to start questioning the point of having this commitee. Furthermore,you have to doubt it's validity outright. I think that there is much to learn from this though. This gives us an insight into what is happening in those exchanges between politician and MPAA/RIAA lawyers/spokes people. They will win legistlation with money, we must win it back in the hearts of the people (and it will take a lot of people).

  14. Re:bribery! by siskbc · · Score: 4, Interesting

    Still guess we can't grumble as university students of today are tomorrow's politicians.

    Well, I don't think MIT turns out too many politicians - they turn out exclusively scientists and engineers. If it was politicians, I wouldn't care - we know they're a bunch of scoundrels - but what is truly frightening is that the ethics of scientists are supposedly held in higher regard than those of politicians. "Bias" is a much dirtier word in science than in politics. So to have MIT students see their advdisors and teachers getting rich off of graft is a very sad thing indeed.

    One more reason I'm glad I didn't go to MIT for grad school.

    --

    -Looking for a job as a materials chemist or multivariat

  15. Couldn't their students help them out? by grungebox · · Score: 5, Funny

    Why did they need to take Dolby's bribe? Couldn't they get their students to help?

  16. Secret MIT/Dolby Deal Sours the Standard by ancarett · · Score: 5, Insightful

    These kind of secret backdoor deals taint the supposedly open review process. How secure can we feel with the standard of DTV given this kind of collusion between MIT and Dolby?

    From the Tech article:

    "It was very closely held information that there was an agreement between MIT and Dolby," Rast said. "It wasn't something that everybody knew about at the time," he added. "It wasn't common knowledge."

    "I think the other members [of the Alliance] would have been quite upset" if they had known about such an agreement, said Joel Brinkley, the author of Defining Vision, a comprehensive account of the HDTV standardization process, and a reporter for The New York Times.

    "I was not aware of it, and I was speaking to all of them," he said. "Many millions of dollars were at stake. The contract for Dolby was one of the best things ever to happen to that company. They are now the audio system for every television that will ever be sold," he said.

    --
    ancarett, historian and zombie gamer
  17. Reaping what ya sow. by CatWrangler · · Score: 5, Insightful
    Starting in the 80's, Universities began to rely less on government, and tuition, and more on private industry for the money to perform research.

    This is a clear example of the bastardization of higher learning because of the influence of money. 2+2=4 even if the boys at Pfizer want it to be 5... It may be tempting sometimes to come up with the answer of 5, when somebody is paying you multi millions to do so.

    Perhaps it is a good opportunity/time to re-evaluate the funding of research and development at universities. A proposal I would like to see is that government heavily subsidizes the research, but all the profits from products that come from the research are plowed right back into universities general funds, paying for more research as well as lower tuitions, and more outright scholarships.

    --

    ---
    When you come to a fork in the road, take it! --Yogi Berra--

  18. A mockery! by Performer+Guy · · Score: 5, Insightful

    The whole point of granting some esteemed organization a vote and membership on a committee is that they use their judgement and weigh greater interests in the ballance, not whore themselves to the highest bidder.

    There is absolutely no point in giving MIT another vote on any panel. They'll just use it like a cash windfall which it's NOT supposed to be. We could actually sell standards control to the highest bidder and put the cash to some use, we don't because it's obviously a bad thing. MIT doing this by proxy is no better, in fact it's worse because they betray a trust.

  19. Wasn't a deal the whole point? by donheff · · Score: 4, Insightful

    As I read the article, it sounds like the whole point of the Grand Alliance was to get the various parties to agree on a standard. Whicj is exactly what they did. MIT and Dolby had competing approaches and MIT made a deal with Dolby to drop their's in favor of Dolby's for a Financial return. Zenith did the same thing. The MIT rep profitted, but he would have profitted if the MIT approach was selected. This would be a big deal if the group was supposed to be a bunch of unbiased technical wizzes choosing the best product, but it wasn't. This is like MS and IBM agreeing on a .NET approach.

  20. Re:I love fragmented standards... by Twirlip+of+the+Mists · · Score: 5, Insightful

    You know, there are something like 220 million televisions in the United States, owned by about 300 million people. It'd be fair to assume that all but a very few-- maybe two or three hundred thousand-- of those people are ignorant of the difference between NTSC, PAL, and SECAM. Some 299,800,000 people in the US alone don't even know that NTSC, PAL, and SECAM exist, or what they mean. For fifty years, we've lived in a world where Asia, Europe, and the US have all had different and incompatible television standards... and yet, somehow, the sun continues to rise each morning.

    The vast-- and I truly mean vast-- majority of people will never know that the United States, Europe, Asia, France, and wherever-the-heck-else have incompatible television signal formats. For obvious reasons you can't receive Asian terrestrial broadcasts in Europe anyway, so for most people the issue simply never comes up. It's just not that big a deal.

    --

    I write in my journal
  21. Similar issues during DVD spec votes... by nedron · · Score: 5, Interesting
    Dolby was accused of similar tactics during the time the DVD spec was being defined and ratified. That's allegedly why DTS (a better codec than DD) was locked out of being a primary alternate to PCM tracks on DVDs.

    I've seen people in the theatrical sound industry rakishly refer to Dolby as the "Microsoft of film audio".

    --


    * As is generally the case, my opinions do not reflect those of my employer.
  22. Here is a simple formula for bribe takers by nizo · · Score: 4, Funny

    1. First you get the money offerred.

    2. THEN you vote as asked (if you want future bribes).

    I mean if someone offers you a bribe, are you expecting them to keep their word later as well???

  23. How HDTV standards are chosen by Anonymous Coward · · Score: 5, Interesting

    Let me tell you a story... I live in Brazil. Brazil sheduled for the middle of 2002 the date to choose wich HDTV standard it will adopt (the american, european or japanese). The big TV stations from Brazil tested all tree against every possible thing: cable transmition, air transmition, ghosts from reflection, moving targets (inside a bus, a train, etc...). NO OTHER COUNTRY DID THIS. The conclusion? The american system sucked, because it only worked OK with cable distribution (90% of brasillians don't have cabe TV). The european was so-so and the japanese was damn fucking good, becase it was difficult to find a place were it didn't worked. So what system was chosen?

    None. The date of the decision was cancelled, and a full boeing of americans went to Brasilia (the Capital) to bribe people. Now you see the potiticians saying that "oh,wehave to choose this based in the economy, not tecnical meriths... The americas will let us export TVs for the USA!" Ok. Let's see:

    1>Brazil makes 2 TVs and sells one to USA and other to some brazilian, gets money of 1 from the USA and other is paid with brazillian cash.

    2>Brazil sends 70% of boths TVs price to USA for "royalties".

    Veeeery smart.