Forgent Announces Agreement With New Law Firms
AUSTIN, TX, Jan. 20, 2005 (MARKET WIRE via COMTEX) -- Forgent Networks (NASDAQ: FORG) along with its wholly owned subsidiary, Compression Labs, Inc., today announced it has reached agreements with new counsel regarding the licensing and litigation of United States Patent No. 4,698,672 (the '672 Patent) and foreign counterparts. Godwin Gruber LLP ("Godwin"), a large trial and appellate firm, will be its new lead counsel for the '672 Patent, and The Roth Law Firm ("Roth") will remain as local counsel in Marshall, Texas. Forgent has initiated litigation against 44 companies for infringement of the '672 Patent in the United States District Court for the Eastern District of Texas, Marshall Division.
The new agreements increase Forgent's portion of the '672 Patent proceeds. The company will now keep up to 74% of all licensing revenue and up to 58% of all litigation proceeds after payment to both current and former legal counsel. Under the prior fee agreement, the license and litigation revenue were split evenly between Forgent and its former legal counsel.
"Our new legal team brings additional competencies and resources for licensing as well as recent successful litigation expertise in the U.S. District Court for the Eastern District of Texas," said Richard Snyder, chairman and CEO of Forgent. "In addition, the new agreements will provide a greater financial return to Forgent shareholders."
"We are excited about this opportunity to help Forgent achieve further success with the '672 Patent," replied G. Michael Gruber, CEO and vice chairman of the board, chair of commercial litigation section - Dallas. "We are convinced that we are developing creative and effective licensing and litigation strategies that will have a significant positive impact on Forgent's bottom line."
Since its inception three years ago, Forgent's intellectual property program has generated more than $100 million from licensing the '672 Patent to more than 35 different companies in Asia, Europe and the United States. The '672 Patent relates to digital image compression, and fields of use include digital still image device used to 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 scheduling software 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 associated with litigation involving intellectual property, patents and trademarks, merger activities and acquisition integration. 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