Here is a bit more info on who developed this and what they have in mind:

Traditionally, a mouse and a cursor are confined to a screen “like a jail,” said study lead researcher Tomás Dorta, a professor at the University of Montreal’s School of Design. “It’s the kind of interaction which has to evolve,” he told Live Science.

The high-tech cursor developed by Dorta and his colleagues can select objects in the 3D virtual world. Instead of clicking on icons to select things with a trackpad or mouse, the screen of a smartphone or tablet becomes the trackpad itself and produces a translucent plane on the screen that responds to all kinds of movements.

“If I have this cup,” Dorta said, picking up a coffee mug. “When it’s selected, it’s like I have it in my hand”

Can you imagine the applications and collaborative tools that could improve from this type of configuration?

And check out a cool video of a 3D screen in action!

thanks to livescience.com for the great info