Digital Domain’s New Legal Setback Freezes VFX Tech Used by Major Studios

June 28, 2016 – Media Mention
The Hollywood Reporter

Nancy Mertzel was quoted in The Hollywood Reporter regarding a preliminary injunction issued against two Chinese firms that purchased and own the facial motion capture technology known as MOVA. The preliminary injunction prevents all licensees, including prominent Hollywood visual effects companies and major Hollywood studios, from using it. Mertzel told the publication that the ruling was “significant” in terms of how it could affect the companies that license MOVA. “The situation that led to the ruling is unusual for an intellectual property case because the preliminary injunction is not based on a finding of infringement. Here, the injunction was based on a California statute that voids fraudulent transfers,” Mertzel said. “The judge found that Shenzhenshi’s transfer of ownership rights in the MOVA assets to Virtue Global Holdings Limited was fraudulent, and done to avoid liability.”