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LFX Flash, 11/13/2009
Cinemark and Imax suing each other
 
Cinemark USA and Imax Corporation have each filed lawsuits against the other over Cinemark's premium XD digital theaters. Cinemark, the third largest theater chain in the U.S., filed a suit on Nov. 4 seeking to invalidate two patents Imax holds on "Conversion of cinema theatre to a super cinema theatre."

Imax has countered with a suit filed yesterday that alleges fraud, breach of contract, misappropriation of trade secrets, and tortious interference, and seeks an injunction to prevent Cinemark from "producing, using, and selling its XD system."

As LF Examiner has reported previously, Cinemark's XD theaters have powerful 3D digital projectors, large screens, and custom sound systems, elements that are cited in two Imax patents. Cinemark's complaint asserts that the patents are invalid because they do not meet the standards for patentability. The chain currently operates ten XD screens, with immediate plans for four more by the end of the year, and a stated intention of opening 100 more over the next few years. Cinemark also has six IMAX theaters, all 15/70 film-based.

Imax's suit does not allege patent infringement, but calls Cinemark "an inveterate tortfeasor and a faithless contract party," and claims that the exhibitor used its relationship with Imax to "create an unauthorized reproduction of the trademarked IMAX Experience." It also alleges that Cinemark approached Hollywood studios to promote its XD theaters, "referring disparagingly to Imax as, among other things, the 'middleman' that need to be 'eliminated.'"

For more information on one of Imax's theater patents, see our November 2008 article, "What is Immersive?"

The November issue of LF Examiner will have a full report on the cases.
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