![]() VirtualMagic would continue to operate the company while expanding its production capacity to include CGI animation and significantly increasing employment. VirtualMagic International Productions, Inc., founded in Vancouver a year prior, signed a letter of intent to acquire USAnimation's Production Services Division on August 30 and closed the deal on October 31. Toon Boom continues development of the USAnimation software, today known as Harmony. In 1996, USAnimation sold its software development business to Canadian competitor Toon Boom Technologies and its animation production services were renamed VirtualMagic USA. In 1995, USAnimation began offering its digital animation system to other customers. USAnimation completed episodic projects such as Beavis and Butt-Head, The Ren & Stimpy Show and the first digitally colored episodes of The Simpsons, as well as commercial projects ranging from Lucky Charms cereal to Levi's jeans. The animation industry was immediately receptive to this concept since digital capabilities were a powerful creative tool for the animation producer to improve the look of shows and do it more efficiently. ![]() He founded USAnimation in early 1992 with David Lipman as vice president and executive producer after he decided to use his technology to change how animation was produced. Whitney developed a "paperless" animation process where animation drawn on paper was scanned into a computer to be colored and composited. When another company was found to have a similar name, Optomystic's name was changed to Digital Animation Laboratories. Whintey continued the company with Karl Sims as Optomystic. After W/D declared bankruptcy in June 1988, Demos formed his own research company, DemoGraFX, while Whitney stayed and took the company through bankruptcy proceedings. Before they could collect the rest of an initial $5 million loan, much of the CG production industry collapsed because of Omnibus's failed growth plan, and investors balked. W/D's first project had them work with Symbolics' Graphics Division to produce the short film Stanley and Stella: Breaking the Ice. The following year, W/D purchased the Thinking Machines Connection Machine 2, fronted by Symbolics workstations with programming done in LISP. Tom McMahon from Symbolics' Graphics Division and other private investors provided funding assistance for W/D. The court temporarily ordered Whitney and Demos to return certain property to Omnibus. Omnibus alleged to a court that Whitney and Demos, who were still paid under their contracts, founded a new competitor, hired at least three Omnibus employees, and used software and other property that belonged to Omnibus. In July, they were locked out of their offices and founded Whitney/Demos Productions. Whitney and Demos filed a complaint against Digital, Omnibus, Ramtek, and others in June, claiming that their rights as minority shareholders of DP were breached in the Omnibus sale. and Gary Demos worked at Digital Productions, which was bought out by Omnibus Computer Graphics in June 1986. Its software division was best known for developing USAnimation, a high-end software package designed to facilitate the traditional animation process using digital technologies. The studio produced animation for television series and commercials, and provided ink and paint services to animated TV series such as The Ren and Stimpy Show and The Simpsons and films such as We're Back! A Dinosaur's Story. (previously known as USAnimation, Inc.) was an American traditional animation studio and software development company based out of Los Angeles, California.
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