MPEG-4 SLS, or MPEG-4 Scalable to Lossless as per ISO/IEC 14496-3:2005/Amd 3:2006 (Scalable Lossless Coding), is an extension to the MPEG-4 Part 3 (MPEG-4 Audio) standard to allow lossless audio compression scalable to lossy MPEG-4 General Audio coding methods (e.g. variations of AAC). It was developed jointly by the Institute for Infocomm Research (I2R) and Fraunhofer, which commercializes its implementation of a limited subset of the standard under the name of HD-AAC. Standardization of the HD-AAC profile for MPEG-4 Audio is under development (as of September 2009).
MPEG-4 SLS allows for having both a lossy layer and a lossless correction layer similar to Wavpack Hybrid, OptimFROG DualStream and DTS-HD Master Audio, allowing for backwards compatibility to MPEG AAC-compliant bitstreams. MPEG-4 SLS can also work without a lossy layer (a.k.a. "SLS Non-Core"), in which case it will not be backwards compatible,Lossy compression of files is necessary for files that need to be streamed to the Internet or played in devices with limited storage.
MPEG-4 is a method of defining compression of audio and visual (AV) digital data. It was introduced in late 1998 and designated a standard for a group of audio and video coding formats and related technology agreed upon by the ISO/IEC Moving Picture Experts Group (MPEG) (ISO/IEC JTC1/SC29/WG11) under the formal standard ISO/IEC 14496 – Coding of audio-visual objects. Uses of MPEG-4 include compression of AV data for web (streaming media) and CD distribution, voice (telephone, videophone) and broadcast television applications.
MPEG-4 absorbs many of the features of MPEG-1 and MPEG-2 and other related standards, adding new features such as (extended) VRML support for 3D rendering, object-oriented composite files (including audio, video and VRML objects), support for externally specified Digital Rights Management and various types of interactivity. AAC (Advanced Audio Coding) was standardized as an adjunct to MPEG-2 (as Part 7) before MPEG-4 was issued.
MPEG-4 is still an evolving standard and is divided into a number of parts. Companies promoting MPEG-4 compatibility do not always clearly state which "part" level compatibility they are referring to. The key parts to be aware of are MPEG-4 Part 2 (including Advanced Simple Profile, used by codecs such as DivX, Xvid, Nero Digital and 3ivx and by QuickTime 6) and MPEG-4 part 10 (MPEG-4 AVC/H.264 or Advanced Video Coding, used by the x264 encoder, Nero Digital AVC, QuickTime 7, and high-definition video media like Blu-ray Disc).