KW,
LodgeNet ran the PRNewswire story you posted. Then, On Command ran the following response:
"On Command Assails Misleading LodgeNet Press Release"
SAN JOSE, Calif., Dec. 11 /PRNewswire/ -- On Command Corporation
(Nasdaq: ONCO), the world's leading provider of on-demand video entertainment and information services to the lodging industry, said that today's LodgeNet Entertainment Corporation press release entitled "LodgeNet Sues On Command for Infringement of Three U.S. Patents" is thoroughly misleading.
The LodgeNet press release fails to mention two ongoing patent
infringement lawsuits and other related litigation filed by On Command against LodgeNet, the earliest of which was brought almost three years ago. There have been no recent, significant developments in any of the litigation between the companies. Accordingly, there is no news in the LodgeNet press release.
"We are greatly disturbed by the misleading nature of LodgeNet's press release today," stated Brian A.C. Steel, On Command's Executive Vice President, Chief Operating Officer and Chief Financial Officer. "The LodgeNet press release is so factually incomplete that it seriously misrepresents the nature of the litigation between the parties. On Command is confident in the merit of its litigation against LodgeNet."
On February 16, 1995, On Command instituted litigation by the filing of a lawsuit in federal district court in the Northern District of California asserting that LodgeNet has infringed, and continues to infringe, On Command's patent throughout the LodgeNet base of installed hotels (U.S. Patent no. 4,947,244, reissued as Re 34,611). The On Command patent encompasses unique technology which brought on-demand movie delivery to the lodging industry. In its complaint, On Command seeks monetary damages and injunctive relief from
LodgeNet.
On June 24, 1997, On Command filed another lawsuit in the Northern
District of California asserting patent infringement by LodgeNet relating to On Command's industry-critical remote monitoring of video signals (U.S. Patent No. 4,829,560). In that complaint, On Command also seeks monetary damages and injunctive relief from LodgeNet.
The lawsuits mentioned in LodgeNet's press release today have been ongoing for some time, and LodgeNet failed to make any reference to the original litigation filed by On Command. On Command's litigation against LodgeNet has been filed for almost three years as to one of the patents mentioned, and six months as to the other. All of the infringement and related actions brought by On Command against LodgeNet remain pending, and await the assignment of a trial date.
As to LodgeNet's patent infringement assertions against On Command
described in the LodgeNet press release today, On Command vigorously denies the allegations of infringement set forth, and On Command has further asserted in its legal filings that the LodgeNet patents in question are both invalid and unenforceable against On Command.
Mr. Steel added, "On Command intends to continue to try its cases in the courts, not in the press."
On Command Corporation is the world's leading provider of on-demand video entertainment and information services to the lodging industry. The Company is based in San Jose, California with offices located across the United States and around the world in Bangkok, Budapest, Hong Kong, London, Madrid, Mexico City, Singapore, Sydney, and Toronto. In September 1997, Deloitte & Touche named On Command Corporation one of the "Silicon Valley Technology Fast 50."
This honor recognized On Command as one of the fastest growing technology companies in Silicon Valley. The Company annually serves more than 200 million guests worldwide, covering approximately 3,000 hotel properties and 872,000 guest rooms. On Command Corporation is listed on The Nasdaq Stock Market under the symbol ONCO and its warrants are traded under the symbols ONCOW and ONCOZ.
This release contains, in addition to historical information,
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to risks and uncertainties, which could cause the Company's results to differ materially. In addition to the factors discussed herein, which could cause the Company's results to differ materially, this report should be read in conjunction with the Company's Amendment No. 3 to Form S-4, On Command Video Corporation Information Statement, On Command Corporation Prospectus and the Company's Reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange Commission.
SOURCE On Command Corporation
-0- 12/11/97
/CONTACT: analysts & investors, Brian Steel, COO & CFO, 408-360-4700, or
media, Eric Becker, Director, Corporate Communications, 408-360-4760, both of
On Command Corporation/
(ONCO)
CO: On Command Corporation; LodgeNet Entertainment Corporation
ST: California
IN: LEI CPR ENT
SU:
-0- (PRN) Dec/11/97 21:25
EOS (PRN) Dec/11/97 21:25 **
-0- (PRN) Dec/11/97 21:40 |
