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If a sony TV has DRC, then the TV itself is likely a HDTV television. The DRC itself is actually a postprocess used on a standard definition picture to upscale it to the TV's higher native resolution. However, unlike regular interpolating techniques, Sony's technology has better guess work at recreating the textures of what the original image should look like if it were captured in HDTV.

This press release goes more into details with a few diagrams of how Sony's DRC technology works on a standard definition interlaced picture along with its recent DRC-MFv2 technology for improving the picture on a HDTV image.