The battle for high definition packaged media is still brewing in China where the official news agency reports the arrival of yet another home-grown system – High Definition Next-generation Versatile Disc (HD NVD).

According to the source, the new HD NVD format uses red laser technology and can store 12GB on a disc. It has been jointly developed by Wuhan Hi-Tech Holding Group, Wuhan National Laboratory for Optoelectronics and Shanghai Institute of Optics and Fine Mechanics.

The project took around four years to accomplish, but, apparently, the first disc samples and players are already out right now in Wuhan, although no pricing details are available.

This new format comes as the other 'home-grown' format, China Blue High Definition Disc (CBHD), is about to hit the streets. CBHD is mostly based on the DVD Forum's Toshiba-designed HD DVD specifications. Shanghai United Optical Disc has completed the installation of its first disc manufacturing line and volume production was to start in the fourth quarter of 2008.

The development of HD NVD is rooted in the Chinese government's desire to reduce the domestic CE industry's dependance on foreign components and resulting royalties. While 80% of all DVD players in the world are made in China, because the DVD core technology and patents are in foreign hands, manufacturers must pay $13.10 per player, which amount to a total royalties bill of up to $3 billion, according to the official source.

HD NVD is not only 'Made in China', but 'Created in China', with the hope that owning their own IP can net 4-5 times the profit for its manufacturers. Both Blu-ray and CBHD technologies were developed in Japan to a large degree, hence, Chinese have to pay the full price for those technologies. The Blu-ray disc association demands $30 fee for every BD player, whereas the DVD Forum wants $12 for every HD DVD-supporting player, not including other fees as well as copyright protection licensing payments.

Story filed 09.02.09