Apple enters into talent and intellectual property deal with virtual avatar startup Animato

Apple has entered into a new talent and intellectual property deal with Animato, a startup that creates virtual avatar software for video chats and tutoring. Here are the details.

Apple reaches agreement with Animato

According to a new listing in the European Commission’s Digital Markets Act acquisition database, Apple has reached 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 agreement, 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.

Extract from the DMA’s list of acquisitions:

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

Essentially, this means Apple has access to Animato’s talent and technology without purchasing the startup directly. A deal structure has become increasingly common in the technology sector, particularly around AI startups, as regulators pay greater attention to full acquisitions.

In Apple’s case, according to the DMA’s list of acquisitions, the Animato deal is the latest in a series of IP licensing and lease-up transactions disclosed by Apple.

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

To discover on Amazon