Race on for computer graphics deals

By PETER GRIFFIN

Computer graphics companies Virtual Spectator and Animation Research have ended their uneasy pact and are now expected to go head-to-head competing for sports graphics contracts, particularly deals around the next America's Cup.

The settlement, details of which are undisclosed, frees both companies to use their graphics software in television and internet products.

Virtual Spectator assumes sole rights to the Virtual Spectator brand-name.

In 2001, Dunedin-based Animation Research, headed by former Virtual Spectator investor Ian Taylor, paid cash for a worldwide exclusive licence to use Virtual Spectator on TV only. The deal was for a wide range of sports, including yachting.

Virtual Spectator was restricted to providing internet graphics and both companies shared the Virtual Spectator brand, as they did successfully during the last America's Cup regatta.

But the relationship became increasingly fraught, especially with the purchase of Australian TV graphics company Pineapplehead by Endeavour Capital in February. Endeavour's head, entrepreneur Neville Jordan, is also a co-owner of Virtual Spectator.

Jordan said Virtual Spectator and Animation Research had begun to take "divergent paths".

"The companies will compete just as both of us will compete against other companies in the US and Europe. That's the spirit of competition."

Animation Research has already got off to a head start in the race for America's Cup work. Last week it won a contract to provide TV graphics for a series of races between America's Cup holder Alinghi and challenger Oracle BMW Racing, which are being held next month in San Francisco Bay.

"We're providing all the data collection off the water, doing all the processing and graphics and delivering it live," said Taylor.

Animation Research is understood to be planning an internet element to go with its TV graphics. Its new brand will be aired during the San Francisco races.

Taylor has not ruled out working with Auckland start-up iVistra in putting together that online element to its graphics coverage. He has worked closely with iVistra owner and former Virtual Spectator employee Craig Meek in the past.

But plans to work together may be disrupted by High Court action between iVistra and Virtual Spectator. It centres on a document, recovered from a rubbish bin by Virtual Spectator staff, that outlines ideas both companies claim to own.