AO-DVD (not to be confused with HD DVD's old name AOD) and NG-DVD are the acronyms of two new nano-tech based optical disc formats Iomega is working on and as a result of this work Iomega has been granted US patent 6,879,556 on the April 12.
AO-DVD stands for Articulated Optical Digital Versatile Disc and uses "reflective nano-structures to encode data in a highly multi-level format". According to Iomega the format has a potential of storing 40-100 times more information than the current DVD format with 5-30 times higher data transfer rates.
NG-DVD stands for Nano-Grating Digital Versatile Disc and uses "nano-gratings to encode multi-level information via reflectivity, polarization, phase, and reflective orientation multiplexing".
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Thanks to Womble for submitting the news! The complete press release is available here and the patent description is available here.
Source: Iomega