QUOTE(ErikS @ Oct 3 2002 - 11:35 PM)
Nobody get it right. Ever. (except those damn Germans

)
They should change name to something easier!

Sorry to "blind you with science" now

, but the name comes from a reknown scientist called Joseph von Fraunhofer who lived from 1787 to 1826 in Bavaria. He was a honorary doctor at the University of Erlangen and earned this title (and his nobility) for the introduction of scientific research and validation methods instead of sheer trial and error. So it seems his name should be more respected in this community...
The Fraunhofer-Gesellschaft (FhG) consists of several institutes spread all over Germany that deal with many fields of research. The Fraunhofer Institute of Integrated Circuits, Erlangen (IIS) is only one of them, and its department "Audio & Multimedia" is only one of this particular institute.
More information related to the IIS can be found e.g. in the L3-FAQ from 1997:
Q:Who is or was Fraunhofer? And what does your institute do?
A: As researcher, inventor and entrepreneur, Joseph von Fraunhofer (1787 - 1826) won high acclaim for his scientific and commercial achievements. When the Fraunhofer-Gesellschaft was founded in Munich in 1949, his name was chosen as the "guiding light" of the association.
Today, the Fraunhofer-Gesellschaft employs a staff of around 8.000 persons and operates 46 research institutes in Germany and one resource centre in the United States, with a research volume of around 1 billion DM. 70 % of its income is obtained by contract research for public authorities as well as for industrial clients.
The "Fraunhofer Institut für Integrierte Schaltungen" (IIS) was founded in Erlangen in 1985. It is headed by Prof. Dr.Ing. Dieter Seitzer and Dr. Heinz Gerhäuser. Today, a staff of 160 persons works on projects in the field of information electronics, developing microelectronic solutions at chip-, board- and system level. In its department "Audio & Multimedia", headed by Dr. Karlheinz Brandenburg, around 40 engineers concentrate on the development and real-time implementation of signal processing algorithms in the field of audiovisual communications.
Q: So you focus on "contract research". What does this mean exactly?
A: Simply put: we have to earn our money. In case of our institute, we are funded by public money for less than 20 % - the rest of our budget has to be financed by research & development projects. You may call this work "applied research", i.e. in contrast to a university, we focus on real-world applications, and in contrast to an engineering office, we focus on state-of-the-art applications that bear some technical risks (and therefore need some further research). With other words, we are always trying to stay at the leading edge of technology. Take audio coding as an example. We started in 1987, in a close cooperation with the University of Erlangen, to develop an advanced audio coding scheme for future broadcast services (Eureka 147, DAB radio). In 1991, our algorithm ("Layer-3") became the most powerful member of audio coding schemes of the international ISO-MPEG standard. Since then, we work on industrial applications as well as on further audiovisual research projects, e.g. MPEG-4 scalable audio coding, MPEG-2 NBC audio coding, or MPEG-4 audiovisual terminals.