Video codec maker DivXNetworks is porting its popular video compression technology Divx to an embedded chip under a deal with Texas Instruments. The aim is to create a chip that consumer electronics makers can use to embedded Divx support in DVD players and set-top boxes.

The deal is important to Divx. Rival Microsoft cut a similar arrangement for its Windows Media codec with Cirrus Logic and Zoran in December.

The Divx chip will be based on TI`s multi-purpose DSC25 DSP chip. Divx and TI are working together to port the Divx codec to the DSC25 processor, which can act as the master CPU or operate as a slave processor from other systems. For Divx applications, the licenseer would buy the DSC25 from TI and the Divx codec from Divx.

Since the DSC25 is a multi-purpose, Divx has a chance of creeping into other devices not originally designed for it. The DSC25 is rather widely used, so Divx can be added to existing products without their being re-engineered.

The TI pact is Divx` second major hardware deal. The company is collaborating with consumer electronics maker eDigital to design a line of portable video players. The first batch of devices should be out by Christmas and cost somewhere between $200 and $500, depending on storage size and the kind of video display it has. eDigital will most likely use the TI chip.

Divx has been labeled the MP3 of video and in some ways the moniker fits. Despite Microsoft`s bundling advantage with its Windows Media format, most movies available for free on Napster-like P2P file swapping services such as Morpheus and Kazaa are encoded in Divx. Many of the flicks are illegal copies of copyrighted movies, but some are legitimate freebies or promos. And Divx` portal site, www.divx.com, houses a bunch of free legal content as well. Back to Headlines