Green light for Redflex
By Ian Porter - June 6, 2005
Red light camera maker Redflex Holdings has had a cloud lifted from its premier operation and has also scored another significant win in its other division, communications.
The litigation started by red light camera rival Nestor, claiming Redflex had infringed Nestor's patents, has been thrown out by the US courts.
Even better, as a result of the finalisation of the claim, Nestor has been precluded from bringing any action in the future against Redflex for infringement of the patent in question.
A similar patent infringement claim by Nestor against Melbourne's other red light camera company, Transol, was also recently dismissed. Transol is seeking recovery of around $500,000 in legal costs.
"It was very pleasing to see that finalised and put behind us," Redflex chief executive Graham Davie said.
He did not think there was any general lesson to be learned about doing business in the US.
"This is a risk. A competitor has a right to take action along these lines. Unfortunately, as was demonstrated in this instance, it is not necessarily based on a legitimate case.
"We suspected the primary purpose of the litigation was for a marketing benefit, but it is very hard to draw that conclusion."
Mr Davie also announced that Redflex's communications division had received another contract to supply equipment for the US Air Force battle control system. The order was placed by the prime contractor, Innovative Solutions Consulting Inc.
The order is worth $A1.3 million and raises the total value of work received under the contract to $3.2 million.
Mr Davie said published details about the contract indicated the final value of equipment supplied could rise to $17 million.
It was the second order won in the last month by the communications division. Directors were still examining the possibility of divesting the division.
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