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In January 2001, DivXNetworks founded OpenDivX as part of Project Mayo which was intended to be a home for open source multimedia projects.

OpenDivX was an open-source MPEG-4 video codec based on a stripped down version of the MoMuSys reference MPEG-4 encoder.

The source code, however, was placed under a restrictive license and only members of the DivX Advanced Research Centre ( DARC ) had write access to the project CVS.

In early 2001, DARC member Sparky wrote an improved version of the encoding core called encore2.

This was updated several times before, in April, it was removed from CVS without warning.

The explanation given by Sparky was " We ( our bosses ) decided that we are not ready to have it in public yet.

" in August 2002 Sigma Designs agreed to publish their source code.