The sinusoidal signals are subtracted from the original signal. This leaves us with the residual transient signals wich can be coded in different ways. One way is to use the wavelet transform. This transform has the interesting property it can be tuned to the resolution needed. Time resolution can be traded for frequency resolution.
Current research is aimed at the implementation of a pitch shifter.
This device should transpose the periodic parts in a sound up or down without compressing or streching the sound. It should therefore only affect periodic sounds and leave the transients intact.