Orrick Prevails for Charles Schwab & Company in Marshall, Texas Patent Suit



    NEW YORK, August 22 /CNW/ - Orrick, Herrington & Sutcliffe patent
litigators and trial lawyers Robert Cote and Rodger Sadler were victorious for
defendant Charles Schwab & Company in a patent suit pending for the past two
years in the Eastern District of Texas. U.S. District Court Judge David
Folsom, who was reassigned the case from Judge T. John Ward late last year,
issued an order on August 2, 2007 denying the plaintiffs' motion for
reconsideration of a May 22, 2007 order dismissing the case against Charles
Schwab.

    The plaintiffs (William Reid and a patent holding company called Net P&L,
Inc.) alleged infringement in the suit by enterprise software systems using
web services oriented architecture, metadirectory, and LDAP directory
solutions for identity management and access control of servers, routers, and
other network resources of a corporate intranet.

    It was learned during discovery that the inventor, William Reid, who
described himself in the press as a "former IBM scientist," assigned all
"innovations" conceived of during his employment to a now-defunct former
employer, Plancom, if the innovations "reasonably related" to Plancom's
business. Plancom was in the business of building a network of wireless LAN
access points or hotspots across the country, providing subscribers with
"connectivity" from airports, hotels, and retail stores to the Internet or
their corporate networks. The Court, in ruling the patent-in-suit (U.S. Patent
No. 6,131,120) was "reasonably related" to Plancom's business, found that the
patented invention and Plancom's business both related to network security and
that Reid had conceived of the subject matter of the patent during his
employment at Plancom.

    The case was followed by financial services and technology companies
because the plaintiffs, with self-professed "visions of wealth beyond
avarice," had hinted in the press that the patent would eventually be asserted
against the entirety of corporate America, since according to plaintiffs
"virtually all corporations" use the patented system to manage employee and/or
customer identity and access to corporate networks.

    The plaintiffs were represented by the Nix Patterson & Roach LLP firm,
which is also currently handling a patent licensing and enforcement program
for the DataTreasury Corporation.

    About Orrick

    Orrick, Herrington & Sutcliffe LLP is a global law firm with
approximately 980 lawyers in North America, Europe and Asia. The firm focuses
on litigation, complex and novel finance and innovative corporate
transactions. Orrick clients include Fortune 100 companies, major industrial
and financial corporations, commercial and investment banks, high-growth
companies, governmental entities, start-ups and individuals. The firm's 18
offices are located in Beijing, Hong Kong, London, Los Angeles, Milan, Moscow,
New York, Orange County, Pacific Northwest, Paris, Rome, Sacramento, San
Francisco, Shanghai, Silicon Valley, Taipei, Tokyo and Washington, D.C.




For further information:

For further information: Orrick, Herrington & Sutcliffe LLP Adi Weisman,
212-506-5122 Senior Communications Coordinator

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