Comment by ndiddy

There's a good podcast about the whole saga here (with a transcript): https://corecursive.com/sloot-digital-coding-system/ and Sloot's patent is here: https://patents.google.com/patent/NL1009908C2/en .

One thing to note is that Sloot consistently refers to his scheme as "encryption" rather than "compression". His encoding scheme originated as a method to encrypt TV repair manuals for his previous project, RepaBase. The idea was that they'd send out a compressed and encrypted database of repair manuals for free, then whenever a technician needed one he would call up RepaBase and pay for the key for that manual. That way, a tech would only need to pay for the manuals he needed instead of for the whole database. The video encoding scheme was basically the same idea except the key was stored on a smart card. Of course the scammy part was misleading investors into believing that all the video data was somehow stored in that decryption key.