Apple strikes talent and IP deal with virtual avatar startup Animato

Apple has struck a new talent and IP deal with Animato, a startup that makes virtual avatar software for video chats and tutoring. Here are the details.

Apple strikes deal with Animato

According to a new listing in the European Commission’s Digital Markets Act acquisition database, Apple has struck a deal with Animato, a virtual avatar company best known for Call Annie, a now-discontinued app that offered video calls with AI tutors for language learning.

Under the terms of the deal, Apple will have the right to hire certain Animato employees, receive a non-exclusive license to Animato’s intellectual property rights, and acquire its patent applications.

From the DMA’s List of Acquisitions:

Apple Inc. (“Apple”) will have the right to make employment offers to and hire certain employees of Animato, Inc. (“Animato”), receive a non-exclusive license to Animato’s intellectual property rights, and acquire Animato’s patent applications. Animato develops and distributes software that creates virtual avatars for video chats and tutoring. Apple (together with its group companies) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services.

In essence, this means that Apple is getting access to Animato’s talent and technology without buying the startup outright, a deal structure has become increasingly common in tech, particularly around AI startups, as regulators pay closer attention to full-on acquisitions.

In Apple’s case, based on the DMA’s List of Acquisitions, the Animato deal is the latest in a series of IP licensing and acqui-hire-style transactions disclosed by Apple.

It follows similar disclosed arrangements with PromptAI, WhyLabs, Mayday Labs, and TrueMeeting, the latter of which was also focused on digital avatar technology.

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