When those ultra-cheap DVD players ($20 or so) say on the box they play MPEG-4 but say nothing about DivX, it's just a way of saying they do play DivX and XviD files without having to pay some kind of royalty to DivX, right?
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If they had paid a royalty to DivX, then the DivX people would have tested it for compliance to their standards, and if it had passed, would have allowed a DivX Certified sticker to be placed on the unit. Since that sticker is worth something, then you could be right; the company was too cheap to pay the royalty. Or it could also be something more; the unit couldn't or wouldn't pass certification and maybe isn't as full featured as a DivX Certified unit.
They should play both DivX and XviD AVIs (XviDs if they don't use certain features, such as GMC), but you don't really know if they'll play all the ones a DivX Certified unit can play, or play them as well, without thorough testing.
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