We analyzed the grayscale inversion mechanism of birefringent-type liquid crystal displays (LCDs). As a result, we propose a new LCD that prevents grayscale inversion, without using the multi-domain alignment method. In addition, using this new method, we established the design rules for a compensation film that can compensate for the retardation of the black state from any viewing angle. We call this new LCD the OCP-cell, which is an abbreviation for "optically compensated parallel cell". This OCP is very promissing as the next generation LCD, due to its wide range of viewing angles, simple fabrication process, which is almost the same as for a TN-cell, and large aperture ratio.