Roth Capital Says IMAX Should Be Bought On Weakness

Roth doesn't know what they're talking about..."Roth Capital questions the validity of Cinemark's claims since IMAX has been providing large-format movies for a much longer period of time. "Too bad the patent in question has nothing to do with large format movies... these are for theaters that offer digital projection not large format 70mm projection.  The lawsuit is over an IMAX patent about retrofitting theaters by moving a screen closer to the audience.   Maybe Roth should consult an analyst who knows something about the film technology or patents before they recommend IMAX as a buy.

There is very little "special" about IMAX's digital system that uses the same Christie projectors as Cinemark. The (so called) IMAX's proprietary geometry are simply viewing angles mentioned in the patent vary from 30 degrees (which is below THX recommendations) to 130 degrees (which is more or less the extent of peripheral vision), there is no single proprietary geometry  from what I can see.  Roth should realize that IMAX digital projection system offers nothing more to the public than IMAX's brand name and a uprez box and with the LieMAX controversey last year the public is catching on.  Next year with 4K DLP projection, IMAX will either have to switch out several hundred projectors all at once or they will no longer have the best digital projection in the multiplex.  IMAX Digital will likely be shown for what it is an overpriced good 2K projection system that anyone theater could buy for $250K.

IN terms of the patent, IMAX should be worried about prior art, I am sure you could find theater renovations that incorporate moving a screen closer to the audience... several renovations of old theaters come to mind, such as the Aztec in San Antonio.   Many of the movie palaces of the 1920's replaced their 4 x 3 screens (often set back with a stage) with a larger wide screen in the 50's that usually were placed closer to the audience.  Hardly a novel concept, is IMAX going to next try to patent sitting close to our television screens? 

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