In 2008, InPhase plans a second-generation 800GB rewritable optical disc with data transfer rates of about 80MB/sec., with plans to expand its capacity to 1.6TB by 2010.

InPhase is hoping to displace magnetic tape cartridges with its first products, according to Dhar.

"Tape is the predominant media in the archival market, but there are a lot of limitations to it. So this is where our initial product will have strength," Dhar said.

Earlier this year, InPhase announced the first beta customers for its HDS-300R product.

In conjunction with InPhase's demonstration of the new DVD technology, Displaytech Inc., maker of ferroelectric liquid crystal on silicon (FLCOS) technology, announced the availability of its Spatial Light Modulators (SLM) for use in holographic data-storage devices. The SLM allows data to be written to holographic discs that feature a capacity 10 to 100 times greater than high-definition HD-DVD or Blu-ray formats.