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Disney Facing VFX Firm's Injunction Bid on Three Blockbuster Films (hollywoodreporter.com)
From a report: 'Guardians of the Galaxy,' 'Avengers: Age of Ultron' and 'Beauty and the Beast' are now under the microscope for use of facial capture technology. Upping the stakes over a technology called "performance motion capture," Rearden LLC is going after The Walt Disney Company in a lawsuit filed this week. The plaintiff, a firm incubated by Silicon Valley entrepreneur Steve Perlman, is demanding an injunction prohibiting Disney from distributing Guardians of the Galaxy, Avengers: Age of Ultron and Beauty and the Beast. The new lawsuit comes a year after Rearden scored a startling injunction against two Chinese firms that purchased allegedly stolen technology known as MOVA, which was being licensed by Digital Domain 3.0. At the time, some legal observers were reading the ruling as notice to Hollywood studios that the facial motion capture technology was out of play. According to Rearden's latest lawsuit in California federal court, Disney didn't listen. "Disney used the stolen MOVA Contour systems and methods, made derivative works, and reproduced, distributed, performed, and displayed at least Guardians of the Galaxy, Avengers: Age of Ultron, and Beauty and the Beast, in knowing or willfully blind violation of Rearden Mova LLC's intellectual property rights."
move outside the reach of copyright and film film film.
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There is no such thing as IP law. There are copyright, patents and trademark laws. Which is it? The 3 of these laws have nothing to do with each other.
This. Exactly this. It couldn't have happened to a nicer company.
"You can't have a contract with someone and hope to enforce that contract on the 3rd party. "
They don't need to. It's a case of infringement. If I have the patent to a process and equipment to implement that process, you might contract for a license limited to using that process and equipment to produce your own products.
If a third party borrows or steals that equipment from you and makes use of it without a license, they are infringing and any product they produce with it is tainted.
"National Security is the chief cause of national insecurity." - Celine's First Law
The claim is Rearden, LLC (Pearlman) invents the MOVA technology, and licenses it to Digital Domain Media Group (DDMG). Pearlman hires LaSalle and become friends, but the MOVA technology doesn't quite catch on in the VFX world. In 2012, DDMG goes bankrupt, and reforms out of bankruptcy in China as Digital Domain Holdings Limited (DDHL).
Pearlman moved MOVA to OnLive Inc., declared it bankrupt, and moved the tech ownership to OL2 (a holding company operated by Lauder). In 2012, one of the Rearden partners (LaSalle) wanted to sell the technology to DDHL claiming Rearden wasn't doing anything with it. Lauder sells MOVA to Lauder Partners, who sells it to LaSalle's company MO2 LLC. DDHL instead arranged for MOVA to be sold from MO2 to SHST (Chinese subsidiary of DDHL), who licensed the technology back to DD3 (American subsidiary of DDHL). LaSalle then goes to work for DD3.
In 2015, DD3 sells the MOVA service to Disney. Disney uses the technology in several live-action movies and makes a crap-ton of money. Pearlman now claims whaa? and reforms as Rearden MOVA, claming that they still own the tech. Pearlman claims that LaSalle violated his contract's inventions agreement by selling intellectual property owned by the parent company.
In 2015, SHST attempts to preemptively sue Rearden that it has the rights to MOVA, and Rearden should stop using the name. Meanwhile they transfer MOVA to Virtue Global Holdings Limited (VGH, subsidiary of DDHL). In court, SHST/VGH fails to provide documentation that they owned the software, are counter-sued, and lose; VGH and SSTL are told to stop claming they own the software. DDHL later comes under investigation by Chinese regulators for creating a ton of shell companies to hide profits from the Chinese government.
Rearden claims that
1) they have the rights to MOVA, not DDHL,
2) that DDHL violated software export laws and shouldn't have been allowed to sell MOVA to SHST in the first place,
3) that DD3 didn't have the rights to license the MOVA technology to Disney, and
4) Disney owes a share of their revenue to Reardon MOVA, the parent of Reardon, LLC.
The only thing clear to me is that all of the parties involved are playing the "Hollywood profit hiding" game of creating shell companies to change who declares the revenues, moving profits among the shell companies, then declaring them bankrupt.