By Victoria Stilwell
Digital Domain Media Group Inc. (DDMG) settled its
patent-infringement claim against Prime Focus World, saying it will
license its three-dimensional conversion technology to the
company.
Shares of Digital Domain soared 15% to $5.11 in recent trading
Wednesday. The stock is off 16% so far this year.
Digital Domain owns the six U.S. patents that represent the
original, commercially-feasible computerized process for converting
two-dimensional filmed imagery into three-dimensional stereoscopic
imagery. In 2011, the company made its patent portfolio available
to certain companies in the industry through a licensing
program.
Under the agreement, the two companies will collaborate on
visual effects and 2D-to-3D conversion services work for feature
films. The agreement settles the litigation action filed by Digital
Domain against Prime Focus in 2011.
"We understand that Prime Focus has its own significant 3D
technology and we are pleased to report, as this license suggests,
that they respect ours as we respect theirs," said Digital Domain
Chief Executive John Textor.
Prime Focus joins Samsung Electronics Co. (SSNHY, 005930.SE),
which licensed the technology to use in its consumer electronics,
components, services and software businesses.
Write to Victoria Stilwell at victoria.stilwell@dowjones.com
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