E-DATA ARGUES APPEAL FOR BROADER INTERPRETATION OF ITS LANDMARK INTERNET PATENT;
Will move ahead on U.S. and European e-commerce opportunities while awaiting appeals court decision
Washington, DC ...February 10, 2000... E-data Corporation (OTC: EDTA) completed oral arguments here before the First Circuit Court of Appeals in its appeal of a New York federal court decision narrowly construing the claims of the company's key Freeny Internet patent. Since 1995, E-data has been litigating a landmark case in intellectual property which has been followed closely by the Internet and e-commerce communities.
E-data owns U.S. and European patents covering a method of selling digital products over the Internet, the growth of which has opened opportunities for their significant commercial application. The patents, which were granted in the 1980s during the infancy of the Internet to computer scientist Charles Freeny, were acquired by E-data in the mid-1990s. Since then, E-data has licensed its U.S. patent to more than a dozen technology companies.
In 1998, Judge Barbara Jones of U.S. Federal Court for the Southern District of New York decided that E-data's U.S. patent applied narrowly to digital data downloaded only to retail settings. E-data appealed this lower court decision; its patent attorneys Graham & James filed written briefs with the First Circuit Court of Appeals and oral arguments were completed February 8. A ruling is expected in 3 to 6 months, or possibly longer.
Scott Hillstrom, who was elected chairman along with a completely new board of directors on January 24, issued this comment on the court proceedings just concluded:
"As an observer at the Court of Appeals, I was impressed by the competence of the Court and its grasp of the complex and subtle issues raised in our case. We respect the judicial process and are optimistic that E-data made convincing arguments supporting a broader interpretation of our U.S. patent to include the non-retail settings disallowed by the lower court.
While one can never predict the outcome of litigation, we are confident that our U.S. patent covers a significant part of the rapidly expanding world of e-commerce, which has grown exponentially since we began litigation in 1995. Success would simply give the patent a wider scope than the already very substantial coverage provided by the lower court ruling."
Hillstrom noted that regardless of the outcome of the appeal, E-data intends to maximize the value of its patents through licensing, co-venturing and their direct use in North America and especially in Europe where they have never been actively marketed. The new E-data board of directors will soon begin exploring these opportunities.
"The new management of E-data is committed to a constructive rather than confrontational approach to the brave new world of e-commerce, wherever possible," Hillstrom said. "We believe that most companies who risk infringing our patents share our high level of respect for intellectual property rights, and it will be our policy to work with them to find ways to make positive contributions to their businesses and the development of the e-commerce community."
E-data Corporation, formerly known as Interactive Gift Express, holds U.S. Patent No. 4,58,643 entitled "System for Reproducing Information in Material Objects at a Point of Sale Location" and corresponding European patents. The patents relate to many electronic transactions involving the purchase and delivery of products composed of digital data including software, information, images and music.
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Note: This press release for E-data Corporation may contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 regarding events, conditions and financial trends that may affect the company's operating results and financial position. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, which are subject to various risks and uncertainties including but not limited to protracted judicial proceedings, growth trends in e-commerce and the ability of the company to finance its licensing and marketing activities.
Company Contact: Scott Hillstrom, Chairman
(212) 425-6100
Agency Contact: Warren J. Cavior
(212) 687-6070 / caviorg@aol.com |
