Network-1 Technologies (NTIP) Receives Favorable Markman Ruling in RP Patent Case

November 4, 2016 8:48 AM EDT

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Network-1 Technologies, Inc. (NYSE: NTIP) announced that the United States District Court for the Eastern District of Texas, Tyler Division, issued a Report and Recommendation addressing the parties' claim construction issues ("Markman Ruling") and defendants' Motion for Summary Judgment regarding improper claim broadening in Network-1's pending patent infringement litigation against Hewlett Packard Company, Avaya Inc., Juniper Networks, Inc. and Axis Communications Inc. involving its Remote Power Patent.

In a Markman Ruling, the Court hearing a patent infringement case interprets and rules on the scope and meaning of disputed patent claim language regarding the patent at issue. In the Markman Ruling, the Court adopted a number of constructions proposed by Network-1, while also adopting constructions proposed by defendants. As part of the Markman Ruling, the Court also considered defendants' motion for Summary Judgment that all claims of the Remote Power Patent are invalid for improper claim broadening. The Court found that all of the original asserted claims of the Remote Power Patent survived the challenge, and only one claim (Claim 23, obtained during a Reexamination of the Remote Power Patent at the USPTO in 2014) was invalid due to improper claim broadening.

"We are very pleased with the Markman Ruling and remain confident in our position that the defendants infringe our patent rights", said Corey M. Horowitz, Chairman and Chief Executive Officer of Network-1. "A Markman Ruling that does not entirely adopt either the plaintiff's or defendants' proposed constructions is very common in patent litigation. While the outcome of this and any legal matter is unpredictable, we believe the Court's Markman Ruling is another significant step towards the successful resolution of this litigation and further validates Network-1's ongoing commitment to the enforcement of its intellectual property rights."

In September 2011, the Company initiated patent litigation against sixteen data networking equipment manufacturers in the United States District Court for the Eastern District of Texas, Tyler Division, for infringement of its Remote Power Patent. Network-1 previously reached settlement and license agreements with twelve of the original defendants. The remaining four defendants in the lawsuit are Hewlett-Packard Company, Avaya Inc., Juniper Networks, Inc., and AXIS Communications Inc. Network-1 seeks monetary damages based upon reasonable royalties.

The Remote Power Patent relates to, among other things, delivering power over Ethernet cables to remotely power network connected devices including, among others, wireless access points, VoIP telephones and network cameras. In June 2003, the IEEE approved the 802.3af PoE Standard. The IEEE also approved the 802.3at Power over Ethernet Plus (PoE Plus) Standard, which increased the maximum power delivered to network devices to 40-60 watts from the current 15 watts under the 802.3af Standard.

Network-1 currently has twenty-five license agreements with respect to its Remote Power Patent, which include, among others, license agreements with Cisco Systems, Inc., Extreme Networks, Inc., Netgear Inc., Dell, Inc., Alcatel-Lucent USA, Sony Corporation, Shoretel Inc., Microsemi Corporation, Motorola Solutions, Inc., NEC Corporation, Samsung Electronics Co., Ltd., and several other data networking vendors.

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