CARLSBAD, Calif., March 24, 2014 /PRNewswire/ -- Patriot
Scientific Corporation (OTCBB: PTSC) today announced the
following:
As stated in our press release on February 20, 2014, we have been evaluating our
options in response to the United States International Trade
Commission's (ITC) notice affirming the Administrative Law Judge's
September 6, 2013 Initial
Determination in regards to Patriot's US 5,809,336 ('336) patent.
Although we had hoped by now that this, and certain other
matters would have progressed further towards a conclusion, we have
decided to provide an update given the passage of time since our
last communication.
Patent Litigation
As many are aware, an Investigation had been undertaken by the
ITC in which Patriot and other complainants alleged violations of
Section 337 of the Tariff Act, seeking importation bans against
multiple respondents for certain wireless consumer electronic
devices marketed for sale in the United
States. Last month the ITC reaffirmed that it found no
violation of Section 337 in the aforementioned Investigation.
We had hoped by now to be able to announce our next steps in
regards to the ITC Investigation, including whether we would appeal
its decision to the U.S. Court of Appeals for the Federal Circuit
(CAFC). The deadline for filing an appeal is April 21, 2014. We expect that not
appealing to the CAFC will result in the resumption of litigation
in the U.S. District Court for the Northern District of
California (Northern District),
where we have alleged infringement of the '749, '890 and '336
patents of the Moore Microprocessor Patent (MMP) Portfolio™ against
multiple defendants. The Northern District litigation has
been stayed pending the conclusion of the ITC proceedings. It
was in the Northern District in October
2013 where Patriot won a patent infringement lawsuit, as HTC
Corporation was found to infringe on multiple claims of the '336
patent. Given this, we believe the Northern District to be a
fair venue for resolving our allegations of patent infringement,
and we will provide further details on this matter as soon as
practical.
In the meantime, HTC has appealed the October jury verdict, and
we have filed cross-appeals regarding the period available for
infringement damages related to the '890 patent. Prior to the
Northern District's ruling that limited infringement contentions to
products marketed subsequent to a USPTO re-examination, the '890
had also been the subject of litigation with HTC.
Phoenix Digital Solutions
We have been seeking the appointment of a new and independent
third member to the management committee of Phoenix Digital
Solutions (PDS), the joint venture that aggregates the ownership
interests in the MMP Portfolio, and which facilitates the unified
marketing and licensing of the patents. We have initiated an
arbitration process for the selection of this third member.
We believe the appointment of an independent member to the PDS
Management Committee will facilitate decision-making in the best
interests of the joint venture.
Licensing and Litigation Support
We have been disappointed over several aspects of the working
relationship between our joint venture partner, its licensing and
litigation support affiliate, and us. These include concerns
over how and what information is shared, invoicing practices and
payment demands, and the productivity, efficiency and transparency
of the affiliate's activities in general. Regrettably,
similar issues have previously surfaced over the course of the
joint venture's existence. We have asserted, and remain firm
on positions that we believe are fair, supportable and
legitimate. We believe that follow-through on our positions
is critical to the success of the licensing program.
Stock Price
We have seen a significant drop in our share price since the
February announcement of the ITC's ruling. The Company has
repurchased over 1.8 million shares pursuant to SEC Rule 10b-18
since the ITC announcement, and we plan to continue making open
market share repurchases as deemed necessary.
About Patriot Scientific Corporation
Headquartered in Carlsbad,
California, Patriot Scientific Corporation is the co-owner
of the Moore Microprocessor Patent Portfolio™. For more information
on PTSC, visit www.ptsc.com.
About the MMP Portfolio™
The MMP Portfolio includes US patents as well as their European
and Japanese counterparts, which cover techniques that enable
higher performance and lower cost designs essential to consumer and
commercial digital systems ranging from PCs, cell phones and
portable music players to communications infrastructure, medical
equipment and automobiles.
Safe Harbor Statement: Statements herein which are not purely
historical, including statements regarding Patriot Scientific
Corporation's intentions, hopes, beliefs, expectations,
representations, projections, plans or predictions of the future
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties including, but not
limited to, the risk that the recently filed actions and litigation
strategy may not be successful and the risks and uncertainties
relating to the future of our MMP joint-venture. It is
important to note that the company's actual results could differ
materially from those in any such forward-looking statements.
Factors that could cause actual results to differ materially
include, but are not limited to, risks and uncertainties associated
with the effect of changing economic conditions, trends in the
products markets, variations in the company's cash flow, market
acceptance risks, patent litigation, technical development risks,
and seasonality. Our business could be affected by a number
of other factors, including the risk factors listed from time to
time in the company's SEC reports including, but not limited to,
the annual report on Form 10-K for the year ended May 31, 2013 and the quarterly report on Form
10-Q for the period ended November 30,
2013. The company cautions investors not to place undue
reliance on the forward-looking statements contained herein.
Patriot Scientific Corporation disclaims any obligation, and does
not undertake to update or revise any forward-looking statements
made herein.
Contact:
Patriot Investor Relations
ir@ptsc.com
760-547-2700 x-102
SOURCE Patriot Scientific Corporation