Forgent Adds Susman Godfrey to Lead '672 Patent Litigation Team
AUSTIN, TX, Nov 01, 2005 (MARKET WIRE via COMTEX News Network) -- Forgent Networks (NASDAQ: FORG) along with its wholly owned subsidiary, Compression Labs, Inc., today announced it has added Susman Godfrey LLP ("Susman") to head its legal team regarding the licensing and litigation of United States Patent No. 4,698,672 (the '672 Patent). Susman was founded over 25 years ago and has approximately 70 lawyers in Houston, Dallas, Seattle, and Los Angeles. The firm is dedicated to winning lawsuits and has won numerous actions with a cumulative dollar amount to date that exceeds $2 billion. Godwin Gruber LLP ("Godwin") will continue to work on the '672 Patent case, with Futterman & Dupree LLP ("Futterman") as local counsel in San Francisco, California. Forgent has pending litigation against approximately 40 companies for infringement of the '672 Patent in the United States District Court for the Northern District of California.
"We continue to believe that the '672 Patent is valid and enforceable. The hiring of Susman Godfrey to lead our litigation efforts is evidence of that commitment," said Richard Snyder, chairman and CEO of Forgent. "Susman brings additional depth and knowledge for licensing as well as recent successful litigation expertise with intellectual property cases."
"Forgent's '672 Patent case is the kind of litigation we like and we look forward to bringing significant value to the licensing and litigation process," replied Steve Susman, partner with Susman Godfrey LLP.
Under the new agreement the company will keep up to 57% of all licensing and litigation revenue, after completion of its obligations with prior counsel. As well, the monthly retainer will be reduced by approximately 40%. Under the prior fee arrangement, the license and litigation revenue were split evenly between Forgent and its former legal counsel.
Since its inception over three years ago, Forgent's intellectual property program has generated more than $100 million in revenues primarily from licensing the '672 Patent to more than 40 different companies in Asia, Europe and the United States. The '672 Patent relates to digital image compression used in digital still image devices that compress, store, manipulate, print or transmit digital still images such as digital cameras, personal digital assistants, cellular telephones, printers, scanners, and certain software applications. The company's patent portfolio includes the combined inventions of Compression Labs, Inc., VTEL Corporation, and Forgent Networks, Inc.
Forgent Networks (NASDAQ: FORG) develops and licenses intellectual property and provides scheduling software to a wide variety of customers. Forgent's intellectual property licensing program is related to communication technologies developed from a diverse and growing patent portfolio. Forgent's software division, NetSimplicity provides a spectrum of scheduling software that enables all sizes of organizations to streamline the scheduling of people, places and things. For additional information please visit www.forgent.com.
This release may include projections and other forward-looking statements that involve a number of risks and uncertainties and as such, actual results in future periods may differ materially from those currently expected or desired. Some of the factors that could cause actual results to differ materially include changes in the general economy and the technology industry, rapid changes in technology, sales cycle and product implementations, risks associated with transitioning to a new business model and the subsequent limited operating history, the possibility of new entrants into the collaboration management market, the possibility that the market for the sale of certain software and services may not develop as expected; that development of these software and services may not proceed as planned, risks associated with the company's license program, including risks of litigation involving intellectual property, patents and trademarks, acquisition integration, and the ability to consummate certain divestiture transactions. Additional discussion of these and other risk factors affecting the company's business and prospects is contained in the company's periodic filings with the SEC.
SOURCE: Forgent Networks