American Bio Medica Wins Decision in Patent Infringement Suit KINDERHOOK, N.Y.--(BUSINESS WIRE)--June 14, 2000--American Bio Medica Corp. (Nasdaq:ABMC - news), which develops, manufactures and markets drugs-of-abuse diagnostic kits, sprays and support services, reported today that it has prevailed in another challenge by Phamatech Inc., of San Diego, Calif., to its design patent. The United States District Court for the Southern District of California ruled that Phamatech's petition for relief was denied and further ruled that Phamatech's attempt to invalidate ABMC's Rapid Drug Screen(TM) patent was denied. Phamatech had filed its declaratory judgment and other claims the day after ABMC had filed suit in Delaware against Phamatech. ABMC's earlier filed case is still pending, and for convenience, it has been assigned to the same Judge that ruled in Phamatech's declaratory judgment case. Phamatech had requested a summary judgment by the court that the design patent claim made by ABMC against Phamatech was invalid and therefore the Phamatech product did not infringe upon ABMC's intellectual property rights. It also asked that the court find Phamatech's trade dress, or overall appearance, did not infringe ABMC's patent, and that the company did not infringe upon ABMC's intellectual property rights. The ABMC claims at issue were identified by the presiding Judge as follows: . . . (1) Patent infringement; (2) violation of section 43(a) of the Lanham Act; (3) violation of 43(c) of the Lanham Act; (4) violation of common law trademark rights; (5) common law unfair competition; (6) violation of California and Business Professions Code ss.ss. 17200 and 17500 et seq.; and (7) violation of California and Business Professions Code ss.ss. 14330 and 14335. Despite Phamatech's contentions, the Court ruled that ABMC's Lanham Act complaints, which Phamatech attacked, were valid claims allowing proceedings to continue in ABMC's trade dress claim and common law infringements. The Court ruled adversely to ABMC on other Lanham Act claims, but those claims did not have the importance to ABMC or Phamatech. The parties' focus was on ABMC's patent claim. Phamatech suffered a defeat of its motion to strike ABMC's multiple assertions of unfair competition by Phamatech. Those claims also will proceed against Phamatech. ``These motions were a distraction to the central patent-infringement case brought by ABMC against Phamatech, a former vendor to ABMC, charging Phamatech with copying and marketing ABMC's Rapid Drug Screen(TM) drug-abuse tests. The principal case now may proceed to the discovery and trial phases,'' stated ABMC Chairman and CEO Stan Cipkowski. Cipkowski added, ``We are extremely pleased and encouraged with this recent decision. We also feel it reflects the strength and validity of our case against Phamatech and other parties for patent infringement, trade dress and unfair competition. We are now looking forward to future proceedings with our request for an injunction and money damages against Phamatech and removal of the copycat products from the market.'' In reaching the decision on patent infringement, the Court had before it expert testimony from each side's patent expert. The Court accepted the opinions and observations made by ABMC's expert. The opinion of Phamatech's expert on what does and does not infringe, was considered and rejected. MAYBE...this thing will start moving here...earnings coming in the next couple weeks. chris |