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One group focused on policy issues and one focused on technical issues, the technical group adopting the name of the Copy Protection Technical Working Group ("CPTWG"). Therefore, the negotiations centered on how the content of DVD discs should be treated by playback devices (both consumer electronics and computer devices) once it is decrypted. 12 The most visible of the alternatives that have been introduced was the DIVX system sponsored by Circuit City and a group of private investors. The basic "design goals" that were required for this copy protection technology and licensing structure were: Sufficient technical and legal protection to "keep honest people honest," i.e., to make it difficult for an ordinary consumer to make a copy of protected content by consumers using normal home-type products; Sufficient technical and legal protection to prevent the easy creation of widely available and usable means of avoiding the technical and legal protections afforded by the technology and related licensing; Implementation in both computer and consumer electronics products such that the effect is insignificantly burdensome in complexity and cost in both environments; Technology licenses that are both sufficient to provide the necessary legal protections and low in burdens on product manufacturers and distributors; and Transparent operation to consumers, except where consumers attempt to make unauthorized copies of content protected using the system. Any unlicensed device may transmit or pass on encrypted content without restrictions, provided such device does not decrypt or otherwise make the content accessible. Because DVD was a new format, it provided the ideal opportunity to build in copy protection technology. This means that such devices and systems may not pass content which has been legitimately decrypted through either analog or digital connections to other devices and systems without the appropriate protections. On the consumer electronics side, the analog VCR market was fairly mature and DVD offered a new generation of players that could gain wide popularity with consumers and generate substantial equipment sales.

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