I do not see anything in the links above about an encoding process. It appears that they believe the mastering process of a two channel recording provides a better recording for listening on a matrix 4-channel surround system. To me this is like using the Spatializer process on a two channel recording.
"Surround Sound can now be created from a standard stereo master and is completely compatible with mono, stereo, or Prologic sound. The system, which works by transferring the 64-bit process into 16-bit, provides what analog fans may rate a richness of sound comparable to a vinyl LP, without the noise."
Yea Mark, I think what you say might be the case.
Making a 4 channel recording with existing 2 Channel source , so rather an upmix type of encode process.
I noticed on line they are into 5.1 with their process which makes sense as it's timely to modern AV Equipment.