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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."

18 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.

  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. 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?

  7. 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.
  8. 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?

  9. 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
  10. 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--

  11. 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?
  12. 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.

  13. 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
  14. 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.
  15. 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.