iPIX Immersive Technology Patents Held Valid and Infringed; U.S. Court of Appeals Affirms Award of $

Internet Pictures Corporation (IPIX), the global leader in mission-critical imaging solutions, today announced that the U.S. Court of Appeals for the Federal Circuit has upheld a patent infringement jury verdict of $1 million against Infinite Pictures, Inc (DBA iMove, Inc.). The court confirmed iPIX`s patent rights covering the transformation of fisheye, equirectangular or equivalent photographic images into perspective corrected immersive images.

iPIX sued Infinite Pictures, Inc. in September 2000 for infringement of its patent (U.S. Patent 5,185,667) covering a technique for converting photographic “fish eye” images into a distortion corrected view, allowing a user to “step inside” and navigate within an image. The jury held the iPIX patent valid and infringed and awarded iPIX $1 million in damages. Infinite Pictures appealed the decision to the US Court of Appeals for the Federal Circuit. The appeals court affirmed in all respects the jury`s verdict and held that Infinite Pictures` SmoothMove Panorama Web Builder, which aligned and seamed three images into a 360-degree panorama image in an equirectangular format, infringed the iPIX patent.

“What is particularly important about the holding of the court is that it agreed with iPIX`s theory of infringement based on the doctrine of equivalents,” said Robert F. Altherr, Jr., attorney for Banner & Witcoff who represented iPIX. “The court agreed that SmoothMove`s equirectangular panorama file, though not an image obtained directly from a fisheye lens camera, was substantially similar to it, and that decision was upheld on appeal.”

In addition to the award of $1 million in damages, Infinite Pictures is prevented from marketing products based on the infringing technology.

About iPIX


Internet Pictures Corporation provides mission-critical imaging solutions to facilitate commerce, communication, security and entertainment. The Company`s solutions include the capture, processing, management and distribution of images and related data. iPIX solutions create and manage a rich variety of media including still images, 360-degree by 360-degree immersive images, video, animation, text and audio. A broad array of industries—including security and observation, real estate, auctions, classifieds, travel, government, and entertainment—are capitalizing on iPIX dynamic imaging to provide viewers more information, more interaction and a richer visual experience. In the online world, iPIX imaging is featured on eight out of the Top 10 Media Metrix Web Properties. The Company is headquartered in Oak Ridge, Tennessee, with co-headquarters in San Ramon, California.


Internet Pictures and iPIX are trademarks and service marks of Internet Pictures Corporation. All other copyrights and trademarks remain the property of their respective owners.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors under those sections. In some cases, you can identify forward-looking statements by terminology such as “expect,” “believe,” “may,” “will,” “plans” and “anticipate,” or the negative of such terms or comparable terminology. Forward-looking statements appearing herein include statements concerning operating and profitability plans and goals and restructuring efforts, and are based on current expectations. Actual results may differ materially from those projected in the forward-looking statements based upon a number of factors including (i) changes in the demand for iPIX products and services, (ii) the loss of existing, or an inability to attract new, iPIX customers, (iii) technological changes, (iv) general economic, financial or market changes or developments and (v) an inability to successfully implement restructuring and profitability plans. The matters discussed in this press release also involve risks and uncertainties described from time to time in Internet Pictures Corporation`s filings with the Securities and Exchange Commission. In particular, see “Risk Factors” in the Company`s registration statement on Form S-3 filed with the SEC on October 16, 2001