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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (422)12/8/1998 11:08:00 AM
From: R Hamilton  Read Replies (1) of 57584
 
Creative Technology Responds to Newly Asserted Aureal Patent Claims

New Lawsuit by Aureal is Without Merit, Appears Designed Only to Respond

To Recent Litigation Reversals Suffered by Aureal

MILPITAS, Calif., Dec. 8 /PRNewswire/ -- Creative Technology Ltd. (Nasdaq: CREAF) announced that it was served today with a lawsuit by Aureal Semiconductor, Inc. alleging infringement of two Aureal patents. Aureal is the new name adopted by Media Vision after it emerged from bankruptcy following what has been called the largest and most elaborate financial fraud case in the history of Silicon Valley.

Aureal's newly asserted claims come over four months after Creative began shipping Sound Blaster Live!, one of the products Aureal claims is infringing. The new suit by Aureal also follows the recent rejection of Aureal's key defense in a separate, long-standing patent case that Creative filed last February against Aureal. Creative's case against Aureal is set for trial next year.

"We regard this latest move by Aureal as an obvious, by-the-book, defensive ploy -- an entirely predictable move given the recent rejection of Aureal's key defense in Creative's own long-standing patent case against Aureal," said John Danforth, vice president and general counsel at Creative Labs, Inc., Creative's US subsidiary.

"Creative's long-standing patent case against Aureal, having now gotten past an unsuccessful summary judgment motion by Aureal, is set to go to trial next year," Danforth continued. "Last week Creative filed a motion seeking to have the trial date expedited to February, 1999. In addition, early next year the Federal Circuit Court of Appeals will hear Creative's motion for a preliminary injunction seeking to immediately enjoin all further shipments of Aureal's Vortex and Vortex 2 products. Creative's opening brief to the Federal Circuit in support of that motion is set to be filed this week. Faced with these adverse developments in the long-standing patent litigation against it, Aureal now has chosen to belatedly assert two patents against a Creative product that has been on the market for many months -- a product that clearly does not infringe. Creative is highly confident it will prevail in this matter, and has opinions of outside patent counsel confirming that it does not infringe."

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the "Blaster" family name. With the new Sound Blaster(R) PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa. For more information on Creative's products and services, visit Creative Zone Web Site at creaf.com.

NOTE: Sound Blaster is a registered trademark of Creative Technology Ltd. in the U.S and/or other countries. All other product names mentioned herein are trademarks of their respective owners and are hereby recognized as such.

SOURCE Creative Technology Ltd.

CO: Creative Technology Ltd.

ST: California, Singapore

IN: CPR

SU: LAW

12/08/98 11:02 EST prnewswire.com
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