Spherix Provides Update on Patent Infringement Litigation

NEW YORK, Oct. 17, 2016 /PRNewswire/ -- Spherix Incorporated (Nasdaq: SPEX) an intellectual property development company committed to the fostering of technology and monetization of intellectual property, today provided an update on its active patent infringement lawsuits, new lawsuits filed, and spending reduction initiatives.

Anthony Hayes, Chief Executive Officer of Spherix, stated, "Spherix is now in the best position to deliver shareholder value from its patent portfolio than at any time in the past. In the last six months, we've effectuated ten new patent infringement lawsuits against defendants with a combined market capitalization of approximately $48 billion. There are more suits on file now than at any time in the last four years. And while most of these suits are recently filed, we are working with our partner Equitable IP to reach fair and equitable settlements with any licensee. Copies of all ten complaints can be viewed on our website, (www.spherix.com). We anticipate additional suits will be filed before year end. I am increasingly encouraged with our strategic position and confident in our ability to create sustainable shareholder value, even as our stock continues to be valued at less than the Company's net tangible book value."

The following is a list of our key initiatives:

• Through our relationship with Equitable IP, we have commenced litigation against:
  • ATN International, Inc. Commnet Wireless, LLC Choice Communications LLC, and Choice Communications, LLC ("Choice Wireless"), case number: 1:16-cv-00718-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • Cincinnati Bell, Inc., case number 1:16-cv-00715-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent, '461 patent, and the '167 patent.
  • Echostar Corporation, case number 1:16-cv-00716-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • Frontier Communications Corporation, case number 1:16-cv-00714-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • Sprint Corporation and Clearwire Corporation case number 1:16-cv-00719-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • Fortinet Inc., case number 1:16-cv-00795-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • ViaSat, Inc., case number 1:16-cv-00720-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • DragonWave Inc. and DragonWave Corp, case number 1:16-cv-00797-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • Fortinet, Inc, case number 1:16-cv-00795-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
  • GTT Communications, Inc., case number 1:16-cv-00796-RGA, in the U.S. District Court for the District of Delaware, related to alleged infringement of the '999 patent.
• The Company's Federal Circuit appeal against Uniden continues to proceed. The Uniden case has now been fully briefed and oral argument is expected to be calendared in the next several weeks. Oral argument in such appeals is usually calendared within two months of the submission of the Joint Appendix of the record, which was completed on October 5, 2016. The oral argument hearing usually occurs within five to six months of the submission of the Joint Appendix.
• Spherix management is confident in its position that the Patent Trial and Appeals Board erred and that the Board's Decision invalidating Spherix's patent-in-suit should be reversed. As stated in the briefing, the Board failed to comply with the Administrative Procedure Act and its conclusion is not supported by the evidence. The Board also applied the wrong patent claim construction, requiring a reversal of its obviousness finding. Management looks forward to discussing its position with the Court during the upcoming oral argument and setting the record straight so that this case can move forward.

Mr. Hayes continued, "In addition to the strong progress we have made towards generating revenue, we have taken meaningful steps to reduce overhead and decrease our monthly cash burn. We have delivered sequential reductions in our overhead expenses in each of our last two quarters and expect this trend to continue as we work to refine our cost structure to an appropriate level consistent with providing the company with ample runway to achieving success. With costs on the decline and more than $7 million in unencumbered cash, we have the staying power to drive shareholder value."

"We understand that each of our cases may widely vary with respect to its size, scope and complexity," concluded Mr. Hayes. "However, there is one feature that tends to remain consistent. The patent enforcement process is often long and requires tremendous patience. To that end we want to thank our committed shareholders for their patience and long term focus. Our multimillion dollar settlement with RPX this past May is emblematic of the rewards that we can enjoy from our hard work and dedication simply by staying the course. As we move forward, we are constantly looking for ways to further creating value."

About Spherix

Spherix Incorporated was launched in 1967 as a scientific research company. Spherix is committed to advancing innovation by active participation in the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Logo - http://photos.prnewswire.com/prnh/20131104/PH08853LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/spherix-provides-update-on-patent-infringement-litigation-300345552.html

SOURCE Spherix Incorporated