Dolby Headphone is a technology developed by Lake Technology (Australia), that later sold marketing rights to Dolby Laboratories, sometimes referred to as Mobile Surround, which creates a virtual surround sound environment in real-time using any set of two-channel stereo headphones.
Certain Asus Xonar soundcards also have Dolby Headphone support, including Asus Xonar models: D1, D2/PM, DX, D2X, DG, HDAV1.3, ST, STX, STX II, Xense and U3.
PowerDVD Ultra 9 also supports Dolby Headphone when certain options are set in the "Settings" menu but PowerDVD is not marketed as an official product of Dolby Headphone.
Head-related transfer functions (HRTFs) are used to generate positional audio cues in the two-channel output signal.
A finite impulse response (FIR) filter is used to process the audio with lower latency.