GDC Technology Ltd said in an e-mail response to China Daily on Monday that a lawsuit filed against the company by IMAX Corp is "baseless". GDC disagrees with and disputes the allegations in the complaint.

IMAX Corp, the leading giant-screen movie theater operator, is suing GDC, a Hong Kong-headquartered digital cinema equipment maker backed by Carlyle Group, for using what it claims are stolen trade secrets tied to its large-screen digital movie projection and conversion systems.

IMAX also claims that its former employee, Gary Tsui, stole the proprietary technology from IMAX and provided it to film companies in China.