/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES. NOTHING CONTAINED HEREIN CONSTITUTES
AN OFFERING OF SECURITIES OF THE CORPORATION IN THE UNITED STATES./
MONTREAL, April 17 /CNW Telbec/ - Kangaroo Media Inc. ("Kangaroo")
announced today that it has entered into a formal agreement with Front Row
Technologies, LLC ("Front Row"), further to the patent settlement it
previously announced on February 6, 2009, to end the complaint filed in the
United States District Court for the Eastern District of Texas, Tyler Division
on September 29, 2008 by Front Row against Kangaroo and other defendants (the
"Complaint"). Under this agreement, Kangaroo and Front Row will each transfer
and aggregate their respective patent portfolios relative to the field of
handheld/mobile entertainment video and/or data distribution and display
systems into a newly-formed company ("FRIP") of which Front Row and its
associates will be the sole shareholders. Kangaroo will have the right to
appoint one of the three directors of FRIP.
FRIP will be responsible for the maintenance of existing patents, funding
and filing of new patent applications and enforcement of the aggregated patent
portfolio for the benefit of Front Row and Kangaroo. Kangaroo is granted a
worldwide, royalty-free, non-exclusive, assignable licence for the entire
aggregated patent portfolio in the field of handheld/mobile entertainment
video and/or data distribution and display systems. For a four-year period
that began on February 14, 2009, Front Row and its associates shall, subject
to certain conditions, defend Kangaroo at no cost except for out-of-pocket
expenses from any lawsuits filed against it based on intellectual property
infringement. In addition, the aggregated patent portfolio will immediately
provide Kangaroo with increased intellectual property protection, which will
facilitate injunctive remedies and damages in situations where a competitor
would infringe its protected intellectual property.
Subject to regulatory approval, under the formal agreement, FRIP will be
granted an option to purchase 19.9% of the issued and outstanding common
shares of Kangaroo for US$400,000 exercisable on December 31, 2012.
Further to the formal agreement, Front Row has dismissed without
prejudice its Complaint against Kangaroo and all other defendants. The formal
agreement is subject to regulatory approval and possibly shareholder approval.
If any such required approval is not obtained by July 15, 2009, the agreement
will terminate and Front Row will be entitled to pursue any legal option
against Kangaroo. The agreement is also subject to normal and customary
commercial terms and conditions including reasonable guarantees, performance,
breach and termination provisions.
"Our agreement with Front Row is a strategic move for several reasons: it
preserves and enhances the value of our intellectual property and protects our
customers and partners. Just as importantly, with our IP now well protected,
Kangaroo becomes a much stronger player in the field of handheld and mobile
entertainment systems," said Robert Mimeault, President and CEO of Kangaroo
About Kangaroo Media Inc.
Kangaroo Media Inc. develops and commercializes hand-held wireless
audiovisual multi-functional entertainment systems that allow users to enhance
their on-site viewing experience of sporting events. Kangaroo Media's unique
technology delivers real-time video, audio and data content to each fan's
hand-held Kangaroo TV device. It gives fans the ability to create their own
live-action sporting event on-site. Kangaroo Media, headquartered near
Montreal, Canada, is listed on the TSX Venture Exchange under the symbol
"KTV". For more information, visit www.kangaroo.tv.
This news release may contain forward-looking information. These
statements may relate to future events or future performance and reflect
management's current expectations and assumptions. Such forward-looking
statements reflect management's current beliefs and are based on information
currently available to management of Kangaroo. A number of factors such as the
benefit of the Agreement, the leveraging of the intellectual property it
creates and the increased intellectual property protection it provides could
cause actual events, performance or results to differ materially from the
events, performance and results discussed in the forward-looking statements.
These forward-looking statements are made as of the date hereof and unless
required by law Kangaroo does not assume any obligation to update or revise
them to reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Rick Clements, Chief Financial Officer, (450)