01 Communique Provides a Corporate Update on its Operations and Patent Litigation.

TORONTO, May 10 /CNW/ - 01 Communique (TSX: ONE) today provided an update on its patent litigation against LogMeIn Inc. and Citrix Systems Inc. as well as an update on its operations going forward.

"We have now received the Court's memorandum and opinion providing its reasons for the April 1st decision to grant LogMeIn's summary judgment motion for non-infringement and have reviewed it with our attorneys," said Andrew Cheung, President and CEO of 01 Communique. "We believe that the Court has applied the claims of our patent too narrowly and thus, the grant of summary judgment was incorrect.  We expect our attorneys, Baker & Hostetler, to file a notice of appeal in the next few days. We remain confident in the merits of our U.S. patent litigation and are pushing forward with the appeal and on other fronts, as explained below."

  1. Patent lawsuit against LogMeIn alleging infringement of U.S. Patent No. 6,928,479 ("the 479 Patent").  The patent lawsuit against LogMeIn in the Eastern District of Virginia was filed in September 2010. A Court Order was issued on May 5, 2011, granting LogMeIn's summary judgment motion for non-infringement.  That Judgment will be appealed to the United States Court of Appeals for the Federal Circuit.  Following a successful appeal, the case would return to Judge Hilton with one less issue to resolve and then continue to trial.  We expect the process of the Appeal to be generally as follows - the Court will docket our Notice of Appeal after which there will be 60 days to file our appeal brief, LogMeIn will then have 40 days to file their opposition brief. Our reply brief will be due 14 days after LogMeIn files its opposition brief. After all briefs are filed there is an oral argument in front of a panel of judges (estimated to be scheduled about 7 to 8 months from the date the appeal is filed), after which we wait for the Court of Appeals to render its decision.

  2. Patent lawsuit against Citrix alleging infringement of the 479 Patent. We filed a patent lawsuit against Citrix in February, 2006 in the Northern District of Ohio. On March 12, 2008 the judge in the case issued a memorandum and order staying the case pending completion of an inter partes re-examination of the claims underlying the Patent in the case, which was requested by Citrix. In July, 2010 the United States Patent and Trademark Office ("USPTO") issued a Right of Appeal Notice ("RAN") finding that all of the claims in the inter partes re-examination are patentable. Citrix appealed the decision to the USPTO's Board of Patent Appeals and Inferences ("BPAI"). That appeal is still in process. With the RAN issued we have requested that the Judge in the case, Judge Lioi, lift the stay and proceed to trial. We are waiting for the Court's decision on the matter.

The Company is seeking past damages, which go back to the patent issue date in August 2005 as well as a permanent injunction against both Citrix and LogMeIn prohibiting infringement of the 479 Patent. In addition, the Company alleges Citrix and LogMeIn are willfully infringing the patent. While the Company is confident in the merits of its case, there can be no assurance that the Company will be successful in any of its litigation.

In addition, we have a two part plan designed to build revenue from our products and services as well as our intellectual property as explained below.

  1. Building revenue from the channel. We recently launched our Channel Partner Program aimed at companies with a customer base that would be attracted to our suite of Software as a Service ("SaaS") offerings. There are three levels of participation and depending on the level preferred, a range of support and expertise is available to each Partner, from pre-sales to field support. Whether a Partner is interested in just referring a potential customer, integrating our products and services into their offerings, or private-label solutions, we offer a Partner package to suit their needs and help them attract new and maintain existing customers.

  2. Protecting our Intellectual Property. The remote access, remote support and online meeting markets are large and growing. Our intellectual property covers all three markets. Our goal is to participate in the growth of these markets and to do so we will continue to defend our intellectual property rights. To this end we have identified companies, in addition to Citrix and LogMeIn, that we believe infringe even under the presently narrow application of the 479 Patent from the LogMeIn case. We will continue to monitor these companies as we determine, in conjunction with our legal advisors, the appropriate course of action.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

About 01 Communique
Established in 1992, 01 Communique (TSX: ONE) offers a suite of remote access services designed for small-medium sized business, mobile professionals and IT service providers. 01's software as a service ("SaaS") offerings are deployed on-demand and include functionality enabling on-line meetings, remote computing and IT support. 01's suite of products includes its remote access offering I'm InTouch (www.imintouch.com) , its online meeting offering I'm InTouch Meeting (www.imintouchmeeting.com), and its remote support offering I'm OnCall (www.imoncall.com) products are protected in the U.S.A. by its patents #6928479 / #6938076. For more information, visit www.01com.com or call (905) 795-2888 or (800) 668-2185 (North America only).

Cautionary Note Regarding Forward-looking Statements.
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release.  Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the Company's Annual Information Form filed on SEDAR, which include the risks associated with its litigation against Citrix and LogMeIn. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

SOURCE 01 Communique Laboratory Inc.

For further information:

INVESTOR CONTACT:
Brian Stringer
Chief Financial Officer
01 Communique
(905) 795-2888 x204
brian.stringer@01com.com


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