Voxel dispute slated for arbitration

March 19, 1997

A dispute with its manufacturing partner has prompted holographicdisplay developer Voxel of Laguna Hills, CA, to begin lookingfor an alternative source for development and manufacturing ofits Voxcam systems. The dispute began in December, when

A dispute with its manufacturing partner has prompted holographicdisplay developer Voxel of Laguna Hills, CA, to begin lookingfor an alternative source for development and manufacturing ofits Voxcam systems. The dispute began in December, when Voxelannounced that it believed its current vendor—laser systemdeveloper General Scanning—was in breach of contract for allegedlyfailing to meet engineering specifications and delivery datesfor the Voxcam imager, a central element in Voxel's digital holographysystem (SCAN 1/22/97).

The dispute between Voxel and General Scanning, of Watertown,MA, is now headed for binding arbitration. Meanwhile, Voxel hasdecided to accelerate its alternative manufacturing program dueto several factors, such as tests by the company that Voxel believesconfirm the engineering shortcomings at the root of its disputewith General Scanning. Under its contract with General Scanning,Voxel had been prohibited from using another manufacturing partner,but that provision was waived when the dispute went to arbitration.

Voxel's alternative manufacturing program will include securingsubsystems from qualified vendors and will also include performingfinal assembly and testing in-house for a pilot production run.A system integrator for volume manufacturing will also be selected.