Nikon has announced the acquisition of RED, a movie camera firm based in the United States, which will become a subsidiary of the Japanese photographic powerhouse. Jim Jannard founded RED Digital Cinema in 2005. RED is located in Foothill Ranch, California, and has over 220 people.

Nikon and RED were involved in a dispute less than a year ago, with RED accusing the Japanese corporation of infringing on its video compression patents in a firmware upgrade for the Nikon Z9. However, the case was rejected in April.

The agreement implies that Nikon, a company mainly known for still cameras, will enter the cinema camera market through a well-known brand.

According to Nikon’s press release, “RED’s contributions to the film industry have not only earned it an Academy Award but have also made it the camera of choice for numerous Hollywood productions, celebrated by directors and cinematographers worldwide for its commitment to innovation and image quality optimized for the highest levels of filmmaking and video production.

“This agreement was reached as a result of the mutual desires of Nikon and RED to meet the customers’ needs and offer exceptional user experiences that exceed expectations, merging the strengths of both companies. Nikon’s expertise in product development, exceptional reliability, and know-how in image processing, as well as optical technology and user interface along with RED’s knowledge in cinema cameras, including unique image compression technology and color science, will enable the development of distinctive products in the professional digital cinema camera market.

“Nikon will leverage this acquisition to expand the fast-growing professional digital cinema camera market, building on both companies’ business foundations and networks, promising an exciting future of product development that will continue to push the boundaries of what is possible in film and video production.”