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The commercial DVD video player specification dictates that DVD players must be coded to play discs that contain the region code for the country in which they were sold.
By law, all new DVD players shipped in the USA are set to Region 1. It is not legal for the manufacturer to provide any means of changing the region code to allow the use of other region's discs. All DVD players and PC's with DVD must implement Region Coding. It is however, quite legal for you to own a Region Free DVD player as it is legal for you modify your player to be Region Free.
Ultimately, Region Coding was developed at the behest of the major Hollywood movie companies in order to control the release of films around the world. In theory, the use of Region Coding would prevent a US DVD movie from playing on a European DVD player thus enabling titles to be distributed in different parts of the world at different times. The player will refuse to play discs that are not coded for the same region as player's region.
Regional codes are entirely optional for the disc manufacturer. Discs without codes - Region 0, Region Free or All Region, will play on any player in any country. The Region Code is not an encryption system, it is just one byte of information on the disc that the player checks.
Read more about dvd regions explained on www.dvdrecorders.ws
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