"DivX software helps power DVD players, digital cameras, and portable media players, and roughly 70% of the company's total revenues comes from licensing fees from hardware device manufacturers. The company also licenses DivX technologies to software companies, and gets fees from advertisers and companies such as Google (Nasdaq: GOOG) that bundle DivX software with their own offerings. DivX is benefiting significantly from the growth of digital media. From 2004 to 2005, its revenues increased from $16.3 million to $33 million. As of the first half of 2006, revenues increased from $14 million in the year-ago period to $27.2 million. The company posted a profit of $5.9 million in its most recent fiscal year." LICENSING FEES !!!