MyMedicalRecords Prevails in Superior Court Hearing to Proceed in
$30 Million Patent Licensing Case
LOS ANGELES, CA--(Marketwired - Feb 3, 2014) - MMRGlobal, Inc.
(OTCQB: MMRF), through its wholly owned subsidiary
MyMedicalRecords, Inc. (collectively, "MMR"), today announced that
the California Superior Court ruled in favor of MMR and denied a
demur brought by Surgery Center Management, LLC ("SCM") this
morning. The Court further ordered SCM to answer MMR's complaint
within ten days. Accordingly, MMR will continue to pursue its claim
for breach of contract against SCM, seeking at least $30 million in
damages. The win follows a July 1, 2013 order dismissing an appeal
filed by SCM in the Second Appellate District, Division Eight. That
Court dismissed the appeal without oral argument by the parties,
giving MMR a green light to move forward with the case in the trial
court. The Court of Appeal ruled on written briefs alone which MMR
believes vindicates its position that there never was a valid basis
for the appeal and it was nothing more than a stalling tactic by
SCM.
According to Robert H. Lorsch, MMRGlobal CEO, upon leaving the
courthouse, "MyMedicalRecords looks forward to next steps with the
case where the Company will pursue its $30 million breach of
contract claim." MMR has previously stated that it believes there
are no viable defenses to SCM's breach of the agreement at issue.
As of this date, SCM already owes MMR more than $20 million, plus
interest and penalties.
The case stems from a December 9, 2011 Non-Exclusive Settlement
and Patent License Agreement ("Agreement") whereby SCM contracted
to pay MMR an initial payment of $5 million payable on December 23,
2011, and additional payments of $5 million per year for five
consecutive years, to license certain of MMR's health IT and
Personal Health Record patents covering uses of MMR's personal and
professional health IT products and services. On January 19, 2012,
MyMedicalRecords, Inc. filed a lawsuit in the Superior Court of the
State of California for the County of Los Angeles for breach of
contract and damages in an amount of $30 million. On September 19,
2012, the Company engaged Liner Law to represent MMR in the matter.
The Agreement contains an arbitration clause, and the arbitration
proceedings have been completed.
MMR believes its claim against SCM continues to be collectible
based on a series of settlements involving SCM pertaining to other
matters. MMR also believes that SCM and affiliates of SCM continue
to operate throughout California and other parts of the United
States. The Agreement between MMR and SCM also includes the
settlement of any potential claims by MMR against SCM and its
affiliates for any past patent infringement which could also be
determined at trial.
MMR is a leading provider of Personal Health Records ("PHRs"),
MyEsafeDepositBox storage solutions and electronic document
management and imaging systems for healthcare professionals. MMR
currently has ten U.S. health information technology patents and
over 400 claims as well as additional applications and continuation
applications and pending patents covering inventions pertaining to
Personal Health Records, Patient Portals and other Electronic
Health Record systems. MMR also has health IT patents issued or
pending in 11 other countries or regional authorities of commercial
interest including Australia, Singapore, New Zealand, Mexico,
Japan, Canada, China, Hong Kong, South Korea, Israel, and
Europe.
About MMRGlobal MMRGlobal, Inc., through its wholly-owned
operating subsidiary, MyMedicalRecords, Inc., provides secure and
easy-to-use online Personal Health Records ("PHRs") and electronic
safe deposit box storage solutions, serving consumers, healthcare
professionals, employers, insurance companies, financial
institutions, retail pharmacies, and professional organizations and
affinity groups. The MyMedicalRecords PHR enables individuals and
families to access their medical records and other important
documents, such as birth certificates, passports, insurance
policies and wills, anytime from anywhere using the Internet.
MyMedicalRecords is built on proprietary, patented technologies to
allow documents, images and voicemail messages to be transmitted
and stored in the system using a variety of methods, including fax,
phone, or file upload without relying on any specific electronic
medical record platform to populate a user's account. The Company's
professional offering, MMRPro, is designed to give physicians'
offices an easy and cost-effective solution to digitizing
paper-based medical records and sharing them with patients through
an integrated patient portal. Through its merger with Favrille,
Inc. in January 2009, the Company acquired intellectual property
biotech assets that include anti-CD20 antibodies and data and
samples from its FavId™/Specifid™ vaccine clinical trials for the
treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about
MMRGlobal, Inc. visit www.mmrglobal.com. View demos and video
tutorials of the Company's products and services at
www.mmrtheater.com.
Forward-Looking Statements All statements in this press release
that are not strictly historical in nature, whether or not such
statement relates directly to Surgery Center Management, LLC, and
including, without limitation, intellectual property enforcement
actions, infringement claims or litigation, intellectual property
licenses, and future performance, management's expectations,
beliefs, intentions, estimates or projections, constitute
"forward-looking statements." Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause MMR's actual results to be materially different from
historical results or from any results expressed or implied by such
forward-looking statements. Some can be identified by the use of
words (and their derivations) such as "need," "possibility,"
"potential," "intend," "offer," "development," "if," "negotiate,"
"when," "begun," "believe," "achieve," "will," "estimate,"
"expect," "maintain," "plan," and "continue," or the negative of
these words. Actual outcomes and results of operations and the
timing of selected events may differ materially from the results
predicted, and any reported results should not be considered as an
indication of future performance. Such statements are necessarily
based on assumptions and estimates and are subject to various risks
and uncertainties, including those relating to the possible
invalidity of the underlying assumptions and estimates and possible
changes or developments in economic, business, industry, market,
legal and regulatory circumstances and conditions and actions taken
or omitted to be taken by third parties, including customers,
suppliers, business partners, potential licensees, competitors and
legislative, judicial and other governmental authorities and
officials. Factors that could cause or contribute to such
differences include, but are not limited to: unexpected outcomes
with respect to intellectual property enforcement actions, claims
of intellectual property infringement and general intellectual
property litigation; our ability to maintain, develop, monetize and
protect our patent portfolio for both MMR's health IT and
biotechnology intellectual property assets in the U.S. and
internationally; the timing of milestone payments in connection
with licensing our intellectual property; our ability to establish
and maintain strategic relationships; changes in our relationships
with our licensees; the risk MMR's products are not adopted or
viewed favorably by the healthcare community and consumer retail
market; business prospects, results of operations or financial
condition; risks related to the current uncertainty and instability
in financial and lending markets, including global economic
uncertainties; the timing and volume of sales and installations;
the length of sales cycles and the installation process; the
market's acceptance of new product and service introductions;
competitive product offerings and promotions; changes in government
laws and regulations including the 2009 HITECH Act and changes in
Meaningful Use and the 2010 Affordable Care Act; future changes in
tax legislation and initiatives in the healthcare industry;
undetected errors in our products; the possibility of interruption
at our data centers; risks related to third party vendors; risks
related to obtaining and integrating third-party licensed
technology; risks related to a security breach by third parties;
risks associated with recruitment and retention of key personnel;
other litigation matters; uncertainties associated with doing
business internationally across borders and territories; and
additional risks discussed in MMR's filings with the Securities and
Exchange Commission. MMR is providing this information as of the
date of this release and, except as required by applicable law,
does not undertake any obligation to update any forward-looking
statements contained in this release as a result of new
information, future events or otherwise.
CONTACT: Michael Selsman Public Communications Co.
ms@publiccommunications.biz (310) 922-7033