Judge In 01-Citrix Patent Case Asks Parties To File Arguments

It will be at least two more months before a decision whether to re-open the 01 Communique Laboratory Inc. (ONE.T)-Citrix Systems Inc. (CTXS) patent dispute is rendered.

The Ohio judge overseeing the case has asked the parties to file arguments over whether the case should resume or whether the stay that has been in place since 2008 should remain in effect, 01 Chief Financial Officer Brian Stringer told Dow Jones. The judge made the request during a telephone conference between lawyers for the respective parties.

01, a tiny Toronto software firm, sued Citrix, a maker of computer network products, in 2006 for infringement. The case was stayed in 2008 pending the outcome of the U.S. Patent and Trademark Office's re-examination of the disputed 01 patent. In July 2010, the USPTO reaffirmed the patent, prompting 01 to ask the court to re-open the case. Citrix wants the stay to remain in effect until its appeal of the USPTO's decision is complete, which could take years.

Officials from Citrix weren't immediately available for comment.

"We've always felt the stay should be lifted and we've always felt very strongly about the merits of our case," Stringer said.

01 must submit a brief by Nov. 15 explaining why it wants the stay lifted. Citrix's response is due Dec. 15 and 01 has until Dec. 24 to file respond to Citrix. Judge Sara Lioi, the Ohio district court judge overseeing the case, could then render a decision or call a hearing before deciding whether to re-open the case.

If it wins the case, 01 could be in line for a windfall that reaches into the hundreds of millions. If it loses, it could end up with nothing. As well, if judge Lioi upholds the stay for another prolonged period, 01's stock could retreat.

In Toronto Wednesday, 01 is down 9 Canadian cents, or 5.5%, to C$1.55 on 300,000 shares.

-By Stuart Weinberg; Dow Jones Newswires; 416-306-2026;

stuart.weinberg@dowjones.com

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