Zi Corporation Update On Litigation
BUSINESS WIRE - September 06, 2002 07:31
CALGARY, Alberta, Sep 6, 2002 (BUSINESS WIRE) -- Zi Corporation (Nasdaq:ZICA) (TSX:ZIC) Chairman and Chief Executive Officer Michael E. Lobsinger said today that sales of its flagship products are essentially unaffected by the recent verdict in its lawsuit with Seattle-based Tegic Communications, a unit of AOL Time Warner. Lobsinger's statements relate specifically to Zi's current global version of eZiText(R) v4.5, as well as its eZiTap(TM), eZiNet(TM) and eZiLite(TM) products. The proceedings have no impact on Zi's investments in Oztime located in Beijing, Zi Services in Hong Kong and Magic Lantern in Canada.
Zi also advised that the judge in the trial has delayed entry of the jury's verdict until motions already filed by Zi are argued and decided. Zi expects these arguments to be heard within three weeks. The motions being made by Zi include a motion to dismiss the damages verdict on the basis that it was incorrectly awarded as a matter of law. The jury's verdict on all counts will be stayed until these motions are ruled upon. Even if the jury's verdict is entered as a judgment without any changes, Zi intends to immediately file an appeal on the judgment.
"We are very confident in our ability to reverse the outcome of this matter." said Lobsinger. "Our balance sheet remains strong and we continue to see momentum in our growth. Further, we want to reiterate that the litigation was only about our older version 4.1 technology, which has not been sold in the United States. Tegic's patents in dispute only cover the United States."
Gary Mendel, Vice President Sales and Marketing of Zi Corporation added, "Our present text input product line is unaffected by the jury's verdict. Earlier this year we received a summary judgment from this same court confirming that our eZiText v4.5 does not infringe the disputed Tegic patents. We can, and still are, actively selling our eZiText v4.5 in the United States. There is no issue regarding our ability to continue to sell eZiNet, eZiTap and our eZiLite products anywhere else in the world, regardless of version." |
