According to the patent, they are using laser ablation. You can get features down into the 10s of nM range without having to resort to exotic lasers.
"Laser ablation" just means removal of material using a laser. I haven't managed to find a copy of their patent. The pictures on their website show the gross measurements for LP grooves. The picture is correct - and it measured in micrometers. The smallest dimension of about 10uM is the peak to peak distance of a waveform in the groove. A red laser has a wavelength of 0.65uM, so it can reach the frequency response required to cut music-frequency sound into the grooves.
I am referring to resolution - if you can hear a difference of 1dB between a louder sound and a softer sound, the displacement difference at the stylus is about 10 nM or 0.01 uM - at any frequency. Since the laser is pulsed light, you would have to abate the laser at that resolution.
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