Texas Instruments (TI) and On2 Technologies have entered into a collaborative agreement to implement On2’s TrueMotion VP6 and VP7 compression technology on TI’s OMAP platform and VaVinci mobile handset and digital video applications.

In the agreement, both parties will share technology and development resources, which will allow TI to optimize VP6 and VP7 codec performance for different applications.

“On2’s video compression is setting the trend for a lot of applications in mobile handsets, web video, real time video conferencing and others, and the need for devices to support such applications is growing,” said Charlie Gonsalves, TI’s DSP third party network marketing manager. “Through this agreement we anticipate acceleration of availability of highly optimized solutions that our customers can leverage to bring to market applications based on TI’s technology.”

Prior to signing the current agreement, On2 had already become a TI development partner. On2’s compression technology is in use on a number of Web sites, and its VP7 codec is used in Skype video conferencing and AOL AIM applications.