MUNICH, Germany — Everybody knows the MP3 data compression technology, but who knows the Fraunhofer Institute for Integrated Circuits? The institute, based in Erlangen, Germany, has created MP3 — but now it has found that time is ripe to replace MP3 through more modern technologies. In order to achieve this goal, the institute invests €60 million (about $94 million).

Fraunhofer IIS and the University of Erlangen-Nuremberg have launched the AudioLabs Erlangen research center. More than 100 researchers are working here on the development of future audio and video technologies with lossless data compression being an important topic. For instance, researchers are working on 'scalable lossless' systems based on HD AAC, explained Fraunhofer researcher Stefanie Frank.

Another project of the institute aims at customizing surround sound schemes to the needs digital radio broadcast. "The question is how I can get six audio channels compressed to fit into digital radio bandwidth," Frank said, adding that the Fraunhofer IIS along with industry partners currently is conducting several pilot projects in this segment.

Another focus topic is audio compression for telephone and conference systems. The research aims at achieving CD-like sound quality for these applications. Other research projects aim at medical applications, an institute spokesperson explained.

AudioLabs intends to attract internationally renowned researchers by creating six professorships. "In the development of world standards such as MP3, AAC or MPEG Surround, Fraunhofer IIS has achieved an authoritative contribution", explained Fraunhofer IIS director Heinz Gerhäuser. "The long-term research cooperation of the university and Fraunhofer IIS will secure our globally leading position and expand it to further research areas."

The project is designed to last ten years. It is funded by MP3 license income.