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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 udtJMoKAeusGHaRNgu8qHg==

<SEC-DOCUMENT>0001209191-03-011206.txt : 20030708
<SEC-HEADER>0001209191-03-011206.hdr.sgml : 20030708
<ACCEPTANCE-DATETIME>20030708165545
ACCESSION NUMBER:		0001209191-03-011206
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030709
FILED AS OF DATE:		20030708

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIGITAL THEATER SYSTEMS INC
		CENTRAL INDEX KEY:			0001226308
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				770467655
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		5171 CLARETON DRIVE
		CITY:			AGOURA HILLS
		STATE:			CA
		ZIP:			91301

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WATSON PATRICK
		CENTRAL INDEX KEY:			0001246339

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-50335
		FILM NUMBER:		03778796

	MAIL ADDRESS:	
		STREET 1:		5171 CLARETON DRIVE
		CITY:			AGOURA HILLS
		STATE:			CA
		ZIP:			91301
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>doc3.xml
<DESCRIPTION>FORM 3 SUBMISSION
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument><schemaVersion>X0101</schemaVersion>    <documentType>3</documentType><periodOfReport>2003-07-09</periodOfReport><noSecuritiesOwned>0</noSecuritiesOwned><issuer><issuerCik>0001226308</issuerCik><issuerName>DIGITAL THEATER SYSTEMS INC</issuerName>        <issuerTradingSymbol>DTSI</issuerTradingSymbol></issuer><reportingOwner><reportingOwnerId><rptOwnerCik>0001246339</rptOwnerCik><rptOwnerName>WATSON PATRICK</rptOwnerName></reportingOwnerId><reportingOwnerAddress><rptOwnerStreet1>  </rptOwnerStreet1><rptOwnerStreet2>  </rptOwnerStreet2><rptOwnerCity>  </rptOwnerCity><rptOwnerState>  </rptOwnerState><rptOwnerZipCode>  </rptOwnerZipCode></reportingOwnerAddress><reportingOwnerRelationship><isDirector>0</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>VP, Consumer Business Develop.</officerTitle><otherText></otherText></reportingOwnerRelationship></reportingOwner><nonDerivativeSecurity><securityTitle><value>Common 
Stock</value></securityTitle><transactionAmounts><transactionShares><value>6601</value></transactionShares></transactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeSecurity><nonDerivativeSecurity><securityTitle><value>Series A Nonconvertible Preferred Stock</value><footnoteId id="F1" /></securityTitle><transactionAmounts><transactionShares><value>12382</value></transactionShares></transactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeSecurity><derivativeSecurity><securityTitle><value>Warrant (Right to Buy Common Stock)</value><footnoteId id="F2" /></securityTitle><conversionOrExercisePrice><value>0.02</value></conversionOrExercisePrice><exerciseDate><value>1997-10-24</value></exerciseDate><expirationDate><value>2007-12-31</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitl
e><underlyingSecurityShares><value>6191</value></underlyingSecurityShares></underlyingSecurity><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeSecurity><derivativeSecurity><securityTitle><value>Warrant (Right to Buy Common Stock)</value></securityTitle><conversionOrExercisePrice><value>12.11</value></conversionOrExercisePrice><exerciseDate><value>1997-10-24</value></exerciseDate><expirationDate><value>2007-12-31</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>4466</value></underlyingSecurityShares></underlyingSecurity><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeSecurity><derivativeSecurity><securityTitle><value>Stock Option (Right to Buy)</value></securityTitle><conversionOrExercisePrice><value>1.02</value></conversionOrExercisePrice><exerciseDate><value>2001-10
- -24</value></exerciseDate><expirationDate><value>2012-09-29</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>12500</value></underlyingSecurityShares></underlyingSecurity><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeSecurity><derivativeSecurity><securityTitle><value>Stock Option (Right to Buy)</value></securityTitle><conversionOrExercisePrice><value>1.02</value></conversionOrExercisePrice><exerciseDate><value>2002-12-01</value></exerciseDate><expirationDate><value>2012-09-29</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>7500</value></underlyingSecurityShares></underlyingSecurity><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeSecurity><derivativeSecurity><se
curityTitle><value>Stock Option (Right to Buy)</value></securityTitle><conversionOrExercisePrice><value>1.02</value></conversionOrExercisePrice><exerciseDate><value>2003-09-16</value><footnoteId id="F3" /></exerciseDate><expirationDate><value>2012-09-15</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>95000</value></underlyingSecurityShares></underlyingSecurity><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeSecurity><footnotes><footnote id="F1">Immediately following the closing of the inital public offering of the Issuer's Common Stock, all outstanding shares of preferred stock will be redemeed by the Issuer.</footnote><footnote id="F2">This warrant will be automatically exercised for shares of common stock upon the closing of the initial public offering of the Issuer's Common Stock pursuant to the cashless exercise provision containe
d therein, based on the price to the public in such offering.</footnote><footnote id="F3">25% of the option shares vest and become exercisable on such date with the remaining shares vesting and becoming exercisable in 3 equal annual installments thereafter.</footnote></footnotes><ownerSignature><signatureName>/s/ Patrick Watson</signatureName><signatureDate>2003-07-08</signatureDate></ownerSignature></ownershipDocument>

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