Court Victory in Canada
Friday November 3, 8:32 am Eastern Time
Press Release
Patent Enforcement and Royalties Ltd.: Court Dismisses Iamgold Appeal
TORONTO, ONTARIO--Patent Enforcement and Royalties Ltd. (PEARL) is pleased to announce that the Court of Appeal for Ontario has dismissed Iamgold Corporation's appeal in a lawsuit brought against it by Kinbauri Gold Corporation in 1991. Iamgold appealed the judgment of Mr. Justice Sedgwick dated May 29, 1999, finding Iamgold liable to Kinbauri in the action claiming specific performance of a February 1990 contract or damages in the amount of $10 million together with other relief for breach of contract. The issues of liability and damages were split by the court in 1995 pursuant to a request made by Iamgold. Kinbauri has informed PEARL that it intends to aggressively pursue the damages portion of the lawsuit. Kinbauri has stated that it expects that a re-appraisal of the damages following the completion of productions, discovery and a review by mining experts will result in higher compensatory damages than the $10 million amount now claimed. In addition, Kinbauri may also seek punitive damages.The appeal court reaffirmed Judge Sedgwick's finding that Iamgold acted toward Kinbauri in questionable good faith. PEARL estimates that Kinbauri may be entitled to as much as $48 million if successful at the trial on damages. Iamgold had approximately $59 million in cash and equivalents on September 30, 2000.
PEARL owns 750,000 Series A Preferred Shares and 773,003 Series B Preferred shares of Kinbauri. These shares are convertible into common shares under certain circumstances, and will pay dividends on a sliding scale basis for a period of up to five years from issue based on Kinbauri's cash flow.
PEARL also announces that it has reached a tentative agreement with Dr. Harry Gaus such that PEARL will now receive a 36.6% interest in any royalties, licensing fees or other income obtained from the litigation with Conair after legal costs, an increase of 10%. After numerous delays, the Gaus vs Conair case is scheduled to be ready-for-trial by November 22, 2000, at which time the parties expect that a trial date will be set. The lawsuit involves a claim for damages resulting from the unauthorized use of a safety mechanism patented by Dr. Harry Gaus for hair dryers that prevents electrical shock if the appliance is immersed in water.
PEARL further reports that a meeting has now been arranged between a New York-based private toy developer and the international toy manufacturer which is alleged to be infringing upon his copyright. The meeting is to determine whether there is any basis for settlement. The parties have agreed to keep the names of the alleged infringer confidential until such time as the settlement discussions are concluded. PEARL will receive a 50% interest after legal costs in any revenue derived from this action, which involves an award-winning line of children's toys.
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Contact:
Patent Enforcement and Royalties Ltd.
Brian W. Courtney
Chairman and CEO
(416) 860-1438 OR 1-800-827-0992
Website: pearlltd.com
or
Renmark Financial Communications
(514) 939-3989
(514) 939-3717
Web: renmarkfinancial.com |
