3D Conversion Tech Legal Disputes: Digital Domain And Prime Focus Settle; Thomas Randolph Sues StereoD Including Giovanni Ribisi

There have been some interesting legal developments in the 3D conversion space this week, one disagreement being settled amicably and the other just starting to develop.

First off we have a software producer, Thomas Randolph who has made a claim against 3D conversion specialist StereoD for failure to pay him a 5% cut of the company.

Here's a portion of the story taken from Courthouse News Service:
Randolph and his company Interactive Artists LLC sued William Sherak (son of nonparty Tom Sherak, president of the Academy of Motion Pictures Arts and Sciences and a former partner of Revolution Studios); movie producer Christopher Mallick; actor Giovanni Ribisi; Kuniaki Izumi, the owner and developer of VDX software; and Hollywood agent David Phillips, who along with Sherak allegedly introduced Randolph to Mallick.

Mallick formed MRSR LLC fka StereoD LLC in 2009 to market and sell Izumi's VDX technology, according to the complaint. Randolph claims that he created the business plan for the 3D conversion company and introduced Mallick to Izumi's software, which converts 2D movies into 3D.

Randolph says he met with Mallick in late 2008, while he was a principal of Kerner Technologies, when the filmmaker expressed an interest in converting 2D movies into 3D.

Randolph says he told Mallick about the VDX technology, and persuaded Izumi to combine VDX technologies with Kerner's CPX technologies and with Kerner's consent entered into a venture with Mallick.

Under the terms of deal, Randolph would be the venture's Chief Technical Officer, own a 5-10 percent stake and license FrameFree and CPF technologies from Kerner, according to the lawsuit.

Randolph is seeking damages for breach of contract, intentional interference with prospective economic advantage, intentional interference with contractual relations, fraud and negligent misrepresentation. His representation is Alexander Volchegursky, with Lvovich, Volchegursky & Szucsko, in San Francisco.

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Secondly we have a settlement between Digital Domain (who recently bought the top tier conversion house In-Three) and Prime Focus. The two companies will be actually working together in the future so it is my understanding that this is an amicable arrangement.

Here's the press release for the settlement:

Digital Domain Media Group and Prime Focus World Settle DDMG Patent Infringement Claim on 3D Technology Through Licensing

Companies Will Collaborate on Visual Effects and 3D Conversion for Feature Films

Port St. Lucie, Fla. And Los Angeles, CA — July 18, 2012 — Digital Domain Media Group (NYSE: DDMG) and Prime Focus World NV have signed an agreement whereby Digital Domain Media Group (DDMG) will license its 3D conversion technology to Prime Focus World. The agreement settles and terminates the patent infringement litigation action filed by DDMG against Prime Focus World in 2011. Under the agreement DDMG and Prime Focus World will collaborate on visual effects and 2D-to-3D conversion services work for feature films.

“Ultimately this was a lawsuit between two companies that enjoy working together, so we’re happy to put it behind us and resume our prior relationship with Prime Focus one of performing high-quality VFX work collaboratively,” said John Textor, CEO and Chairman of DDMG. “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.”

“Prime Focus is dedicated to delivering the highest level of conversion to its clients. The technology that we’ve licensed from Digital Domain Media Group enhances our own robust proprietary processes and increases our efficiency for our customers. We look forward to continuing our work with DDMG on their most important VFX projects,” said Namit Malhotra, CEO and Chairman of Prime Focus World.”

Through the Digital Domain Stereo Group, DDMG owns the six U.S. patents that represent the original commercially feasible computerized process for converting 2-dimensional filmed imagery into 3-dimensional stereoscopic imagery. The DDSG patents provide fundamental coverage of any modern conversion process that involves rotoscoping (i.e., computerized, semi-automatic and semi-automatic conversion with roto), and relate to any conversion process that includes horizontal image displacement / transform. In 2011, DDMG made its patent portfolio available to select companies in the broader industry through a studio-friendly licensing program. Prime Focus joins Samsung Electronics Co., Ltd., which licensed DDMG’s technology in 2011 for use in its consumer electronics, components, services and software businesses.

About Digital Domain Media Group
Digital Domain Media Group (DDMG: NYSE) leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Pirates of the Caribbean: At World’s End and TRON: Legacy, hundreds of commercials, and recently created the virtual likeness of rapper Tupac Shakur for Dr. Dre’s show at the Coachella Valley Music Festival. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. The company is building on its success in VFX to participate as a co-producer in major productions and is currently co-producing the upcoming live-action sci-fi feature film Ender’s Game, as well as virtual likenesses for Elvis Presley that will be jointly owned by CORE Media Group and DDMG. DDMG also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. The company is also applying its CG expertise to produce original, family-friendly animated feature films at its subsidiary Tradition Studios. The first movie, The Legend of Tembo, is in pre-production and two more features are in development. The company’s education subsidiary, the Digital Domain Institute, sets a new standard in digital media education through a pioneering public-private partnership with The Florida State University College of Motion Picture Arts. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing studios in Beijing and Abu Dhabi. http://www.ddmg.co

ABOUT PRIME FOCUS WORLD
Prime Focus World is a leading global technology services company providing comprehensive creative and technical services to the film, broadcast and advertising industries. Providing 2D to 3D conversion, visual effects and animation services for major media and entertainment companies, the Company has brought its expertise to many wide release Hollywood films, including Men in Black 3, Star Wars: Episode One – The Phantom Menace, Harry Potter and the Deathly Hallows: Part 2, Narnia: The Voyage of the Dawn Treader, Green Lantern, Immortals, Transformers: Dark of the Moon and Avatar. Prime Focus World has global operations with a presence in key centers of creative content production – Los Angeles, New York, London, Vancouver and Mumbai.

This post makes no interpretation of who is right and wrong in these legal matters that are in the hands of the courts.

Top Tier 3D Conversion Company IN-THREE Bought By DIGITAL DOMAIN

Digital Domain Holdings which owns the FX company Digital Domain has just bought the 2D to 3D conversion company In-Three. In-Three is clearly a top tier 'dimensionalization' company and the move makes sense on many levels.

My good friend Neil Feldman, CEO of In-Three told David Cohen of Variety: "It's a no-brainer to us to want to be affiliated with a high-end vfx expert company so we can pool our resources and do something beyond what's been done before. We've seen low-end conversions, and that's not what we want to do. We're trying to maintain the highest quality."

Cliff Plumer, CEO of Digital Domain continues: "Pretty much all the movies we're working on have a stereo aspect. Our preference still is shooting in stereo, if you can. But a lot of films are still shot flat and the post schedules are getting much tighter, which forces visual effects companies and stereo companies to work together."

Shortly In-Three will begin to move its production facilities from California to Florida to be in close proximity to Digital Domain's headquarters. Sales efforts will largely remain in California which again makes perfect sense.

Apparently the acquisition will not affect In-Three's day to day operations when it comes to the conversion of third party titles which is great to hear. Top tier conversion companies are like gold in today's massive 3D conversion market.

Congratulations to all involved! Looks like a solid move.

Gotta Love All These New 3D Movies... Now Comes Your Favorite Classics In 3D!

Jim here. I would pay good money to see THE MATRIX converted to 3D. How about you? You have a classic movie that you would love to see in three dimensions?

Well your wish may be coming to fruition if In-Three and Mumbai based Reliance MediaWorks have anything to do with it! Yes - Reliance is the same gigantic media company that helped fund Spielberg and Dreamworks.

In-Three is one of the leading 2D to 3D conversion companies out there (like PassmoreLab) and they are jointly constructing a $40m Mumbai complex for exactly that. They hope to employ up to 600 in it's first year to churn out 15 to 25 feature film conversions a year. Eventually they expect to have thousands working under their roof - the largest of its kind in the world.

Their first conversion title is expected to start early next year. Of course TV shows may very well be the next hotbed of activity for 3D conversions with the S3D standards for home theater coming on stream in 2010.

Savings could be in the 25% to 45% range verses the current price for feature film conversion.

Looks like a pretty good move to me. I expect a mix between freshly shot movies and classics. The end result will be much more content in 3D at home and in the theater VERY soon. And that is good for all of us. Do you think that is air you're breathing right now? Interesting. :-)

"G-Force" Also Being Shot In 2D And Converted To 3D In Post: No 3D Cameras!?

Jim here. I recently spoke with Neil Feldman from In-Three (mainly about the "Alice In Wonderland" post found here) - Neil specializes in 2D to 3D conversions and had some interesting comments on G-FORCE.

He confirmed with me that In-Three is busy working with Disney and Sony ImageWorks in creating G-FORCE which is slated for release on July 24th, 2009. Neil stated: "G-Force is an excellent example of a "hybrid" project. That is, it combines live action footage (real actors) interacting with CGI (computer generated) characters. All the live action footage was shot single camera - 2D. We are Dimensionalizing all that footage. Sony ImageWorks is responsible for all the CGI work. However, we are also Dimensionalizing some of their material as well."

I had no idea. Perhaps 2D-3D conversions of new 3D movies is a bit more prevalent that I had imagined in Hollywood!

G-FORCE is a live action / animation blend and is being voiced by Penelope Cruz, Nicolas Cage, Steve Buscemi, Bill Nighy and Tracy Morgan. The storyline is about an elite guinea pig commando force trying to stop a billionaire from taking over the world.

Time will tell the tale on these movies. I wish them the best as always.

Image courtesy of AnimationMagazine.net