Local Corporation Reaches Favorable Settlement in Patent Infringement Litigation
September 03 2014 - 7:30AM
Business Wire
Local Corporation (NASDAQ: LOCM), a leading local search and
advertising technology company, today announced that it has reached
a favorable settlement agreement in its patent infringement action
with Fry’s Electronics, Inc. The terms of the settlement are
confidential.
The litigation began in June 2012 when Local Corporation filed a
lawsuit claiming that Fry’s Electronics was infringing on its
registered U.S. Patent No. 7,062,453, which covers “methods and
systems for dynamic networked commerce architecture.”
“We are very pleased with the outcome of this settlement, and we
believe this further validates the significant unlocked value of
our robust patent portfolio,” said Fred Thiel, Local Corporation
chairman and chief executive officer. “We have identified hundreds
of websites and applications that we believe infringe upon this
patent and believe there are likely thousands more. We have set a
clear course to begin the process of licensing this patent and
expect to continue to report the results of these monetization
efforts with greater frequency. Overall, we currently believe that
a conservative estimate of potential future licensing fees that
could be generated from this patent is $100 million. We believe we
are well-positioned to explore the monetization of our other patent
families as well, including our pay-per-call patents.”
The company has 13 patents issued covering several categories
including search/menus, pay-per-call and local shopping. Also, in
order to create a more flexible structure to better leverage the
value of its IP, the company recently announced that it is in the
process of transferring the majority of its issued patents to a
dedicated IP holding subsidiary.
About Local Corporation
Local Corporation (NASDAQ:LOCM) is a leading local search and
advertising technology company that aggregates and curates the most
relevant and rich personalized content and presents it to millions
of consumers wherever and however they search for information,
while providing significant reach and value to the company’s
advertisers and partners. For more information, visit:
http://www.localcorporation.com or visit the company’s flagship
site: http://www.local.com. To download the company’s Havvit™
shopping app, go to: iTunes® (http://bit.ly/1d8Y111).
Forward-Looking Statements
This press release contains certain forward-looking statements
that are based upon current expectations and involve certain risks
and uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Words or expressions such as
"anticipate," "plan," "will," "intend," "believe" or "expect" or
variations of such words and similar expressions are intended to
identify such forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject
to risks, uncertainties, and other factors, some of which are
beyond our control and difficult to predict and could cause actual
results to differ materially from those expressed or forecasted in
the forward-looking statements, including our future ability to
monetize our patents through licensing efforts with third parties,
and our ability to overcome any challenges that may be posed as to
the validity of our patents. Key risks are described in the filings
we make with the U.S. Securities and Exchange Commission. The
forward-looking statements in this release speak only as of the
date they are made. We undertake no obligation to revise or update
publicly any forward-looking statement for any reason. Unless
otherwise stated, all site traffic and usage statistics are from
third-party service providers engaged by the company. Traffic and
our monetization of that traffic combine to determine our revenues
for any given period. Our traffic volume alone for a period should
not be viewed as demonstrative of our financial results for such
period.
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Investor Relations Contact:LHAKirsten Chapman,
415-433-3777local@lhai.comorMedia Relations Contact:Local
CorporationCameron Triebwasser,
949-789-5223ctriebwasser@local.com
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