Dolby Laboratories announced that it has entered into an agreement to acquire the
assets of DemoGraFX, Inc., a leading developer of specialized digital video signal
processing and image coding technology.
Among the assets that Dolby will acquire
are the DemoGraFX patent portfolio, its image signal processing know-how, its hardware
and software systems, product prototypes and product line, and its complete technology
The DemoGraFX image technology team will operate out of Dolby's Burbank facility,
close to the entertainment industry's west coast production and postproduction communities,
and will report through Dolby's Research Division at corporate headquarters in San
The technology team has broad experience in image compression, filtering, format
conversion, computer graphics, software modeling, image quality analysis, parallel
computing, PC application software, and video and PC hardware design. The team will
focus on the development of specialized image processing technology that delivers
visually superior imagery in a wide range of industry standard digital video entertainment
"Dolby's strategy is to deliver key signal processing solutions for entertainment
applications," said Bill Jasper, President, Dolby Laboratories. "The DemoGraFX asset
purchase is a perfect fit as we expand our technology, product, and service businesses
with very high quality image processing solutions that target important markets
Key among the intellectual property that Dolby will acquire are DemoGraFX Compression
Pre-Filtering (video noise reduction) technology, products, and services; its image
coding know-how and development expertise around the emerging JVT/AVC H.264 Advanced
Video Coding standard; and its expertise in layered image coding.
Craig Todd, Sr. Member of the Technical Staff at Dolby, who targeted DemoGraFX
and contributed to strategy for the asset purchase, said, "This acquisition will
give Dolby a technology base on which to build a portfolio of specialized image
technology professional products, and licensable consumer technologies, consistent
with Dolby's proven business models and strategies."
The image technology team joining Dolby will be led by Kevin Stec in his new
role as Director, Technology Development, supported by the technical leadership
of Principal Engineer Walter Gish. Tom McMahon will join Dolby's Research Department
as Senior Architect focusing on image coding technology, strategy, and standards,
and contributing to related business development efforts.
"Dolby's unparalleled success at bringing to market technologies that enhance
the entertainment experience worldwide will help ensure a solid return on the company's
investment in DemoGraFX technology, its know-how, and its technology team," said
Peter Forman, DemoGraFX CEO.
The asset purchase is expected to close by the end of April.