ClearOne Granted Expanded Preliminary Injunction Order in Federal Trade Secret Misappropriation Case, Prohibiting Use, Sale or Marketing, of Wideband Solutions, Inc.s' Infringing Products

    SALT LAKE CITY, Feb. 5 /CNW/ -- ClearOne (Nasdaq:   CLRO). An order was
issued by the federal court yesterday, in favor of ClearOne Communications,
Inc. expanding the scope of a previously issued preliminary injunction order,
and prohibiting WideBand Solutions, Inc., its principals, and others acting in
concert with WideBand, from (among other things) the use, sale or marketing of
ClearOne's trade secrets and WideBand's infringing products found to use these
trade secrets.

    This order comes in the case which was presented to a jury in October and
November 2008.  The case is pending in federal court in Utah (the
"Intellectual Property Case") initiated by ClearOne against Biamp Systems
Corporation ("Biamp") and a group of defendants sometimes termed the "WideBand
Defendants," which group consists of WideBand Solutions, Inc. ("WideBand");
three of WideBand's principals - Dr. Jun Yang, who was a former ClearOne
employee, Andrew Chiang, who was previously affiliated with an entity that
sold certain assets to ClearOne, and Lonny Bowers; and Versatile DSP, Inc.  On
November 5, 2008, the jury returned a unanimous verdict in the Intellectual
Property Case in favor of ClearOne and against all of the Defendants, awarding
ClearOne approximately $3.5 million in compensatory damages and $7.0 million
in punitive damages, and finding that all of the Defendants willfully and
maliciously misappropriated ClearOne's trade secrets.

    On February 4, 2009, pursuant to ClearOne's request, the Court issued an
Order Expanding the Preliminary Injunction (the "Expanded Order").  The
Expanded Order provided, among other things, the following:

    --  that it applies to all of the WideBand Defendants, as well as their
        agents, officers, employees, and those acting under their direction or

    --  that WideBand's "Infringing Products" "illegally utilize" ClearOne's
        trade secrets, listing as the Infringing Products the following:

    (a) WideBand's Simphonix products, including the Si-40 and Si-400;

    (b) WideBand's WC301A product, sometimes known as the "Tandberg(TM)
    Phone Add;"

    (C) WideBand's WC301 product;

    (d) WideBand's FC101 product;

    (e) the AEC2W code licensed to Biamp Systems Corporation; and

    (f) the computer code licensed to Harman Music Group, Inc. that was
    the subject of the October 30, 2007 Preliminary Injunction Order.

    --  that all WideBand Defendants are prohibited from disclosing or using
        any way the computer code at issue in the case, the development
        documentation for that code, and WideBand's "Infringing Products,"
        identified above.

    The Expanded Order noted that "[t]here is also recent evidence that the
WideBand Defendants are still marketing one or more products that contain the
trade secret," and went on to preclude any "further marketing, selling,
manufacturing, development, modification, duplication, or transport or
delivery of technology containing [ClearOne's trade secrets]," including
"without limitation, a restriction upon any further marketing, selling,
delivery, and/or use of technology or products containing [ClearOne's trade
secrets] to service any past or existing customers."

    ClearOne intends to vigorously enforce the Expanded Order.

    At trial and throughout the Intellectual Property Case, ClearOne was
represented by the Utah law firm of Magleby & Greenwood, P.C.

    About ClearOne
    ClearOne is a communications solutions company that develops and sells
audio conferencing systems and other related products for audio, video, and
web conferencing applications.  The reliability, flexibility, and performance
of ClearOne's comprehensive solutions create a natural communications
environment, which saves organizations time and money by enabling more
effective and efficient communication.  For more information, visit ClearOne's
website at


    Contact: ClearOne Communications, Inc.
             (801) 303-3582


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For further information: ClearOne Communications, Inc., +1-801-303-3582,  Web Site:

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