This is from a blog at consumer reports
CES: LG may face licensing issues over lack of iHD
Consumer Reports has learned there may be a licensing issue with LG Electronics' new $1,199 "hybrid" Super Multi Blue high-def player, which can play both HD DVD and Blu-ray discs: because it doesn't use the iHD standard for interactivity (for features ranging from interactive movies to games) it violates the terms of the DVD Forum's licensing agreement, meaning it would not be able to bear the official "HD DVD" logo. The HD DVD licensing requirements mandate the inclusion of iHD-based interactivity. The LG player can play HD DVD titles, but it uses the Blu-ray Disc Association's Java BD interactivity to create a menu system for HD DVD titles. As a result, LG can sell the player, but the HD DVD group could force the company to remove any HD DVD logos and refrain from calling the device an HD DVD player. According to a Blu-ray representative, a company that made a player that only used iHD interactivity would have the same issue with the Blu-ray Disc licensing requirements, which mandate Java interactivity. While it's possible that future iterations of the LG player could include both forms of interactivity, that may prove to be an engineering challenge.