I don't know if this is industry terminology (very sad since my name is attached to a version of the LIST Council's dictionary) but ITL refers to it as "laser cut" mode.
When you cut a key by code on an automatic key machine, such as the ITL 950C, it cuts one space at a time. It cuts into the key which is why the angle of the cut matches the angle of the cutting wheel. On laser cuts, it starts at the shoulder and moves towards the tip of the key, continually running. In other words, it doesn't pull away from the key after each cut (which is why it doesn't have the profile we're accustomed to).
So why do they do it? They say it means less wear on the lock and key (no hard angles or points). Never seen proof of this but, on the surface, seems to make sense.
EDIT: Hey I got it right:
laser cut
adj. 1. a way of cutting a key so that the roots of adjacent cuts are connected by a straight-line cut; 2. a way of cutting a key so that the root of a shallow cut is widened until it intersects the included angle of an adjacent deeper cut