US AutoDriller Litigation Continues in Texas

CALGARY, Dec. 6, 2012 /CNW/ - Pason Systems Inc. ("Pason" or "the Company") 
(TSX: PSI) announced today that a new complaint has been filed in the ongoing 
patent dispute with the Company's primary competitor around the Company's 
automatic driller product (the "AutoDriller"). This recent complaint was 
filed in the Western District of Texas, Austin Division and is founded upon 
the same patent which has been the basis of extensive litigation between the 
Company and the plaintiff. The complaint relates only to the Company's 
rental of its AutoDriller in the US market from March 2009 and will extend to 
cover rentals only until April 19, 2013 when the patent expires. 
The plaintiff is not seeking any injunctive relief that would prevent Pason 
from continuing to market its AutoDriller. As a result, this recent 
complaint will have no impact on the Company's operations. 
Litigation between the Company and the plaintiff regarding the AutoDriller has 
been ongoing since 2003. Numerous proceedings have taken place in both 
Canada and the US, all centering around the AutoDriller's alleged infringement 
of a patent owned by the plaintiff (the "144 Patent"). The original suit was 
filed in Colorado and included a jury trial in 2008 and subsequent bench trial 
in 2011, with a resulting judgment entered on June 18, 2012. The Company has 
accrued US$19.4 million in its consolidated financial statements for that 
judgment, though it has appealed to the US Court of Appeals for the Federal 
Circuit, which appeal is pending but expected to be heard some time in the 
middle or later part of 2013. That case relates only to the technology used 
in Pason's AutoDriller prior to March 2009. After the jury trial in late 
2008, the Company modified the technology used in its AutoDriller to 
distinguish it from the 144 Patent. 
In 2005, the same plaintiff brought a parallel suit in the Federal Court of 
Canada based on the equivalent Canadian registration of the 144 Patent. That 
Canadian equivalent patent also expires on April 19, 2013. The Canadian case 
concluded in January 2012 though a judgment has not yet issued. The Canadian 
litigation took place after Pason implemented its new technology, and as a 
result, the judgment will include an assessment of both versions of the 
AutoDriller technology, both before and after the March 2009 modifications. 
This recent complaint the plaintiff filed in Texas alleges that the new 
AutoDriller technology infringes the 144 Patent. The new technology was not 
yet implemented at the time of the 2008 jury trial in Colorado, and as a 
result, it was not considered in the case, nor will it be considered in the 
upcoming appeal. Pason is confident that the modified technology in the 
AutoDriller does not infringe the 144 Patent and intends to vigorously defend 
that position in the Texas case. 
Pason expected that the Canadian judgment would include sufficient reasons 
that the new technology in the modified AutoDriller does not infringe the 144 
Patent, such that the plaintiff would not make this recent complaint. 
However, due to the Federal Court of Canada's delay in issuing its judgment, 
the plaintiff was able to file this suit before any judicial consideration of 
the AutoDriller's new technology. The Company remains optimistic that the 
Canadian judgment will include reasons why the new technology does not 
infringe the 144 Patent and those reasons will serve as a precedent to dismiss 
this recent complaint in Texas. 
Pason Systems 
Inc. 
Pason Systems Inc. is a leading provider of instrumentation systems to 
land-based and offshore drilling rigs worldwide. The Company's rental 
solutions, which include data acquisition, wellsite reporting, remote 
communications, and web-based information management, maximize rig uptime, 
improve work efficiency, and minimize operating costs. Pason's common shares 
trade on the Toronto Stock Exchange under the symbol PSI. 
Certain information regarding the Company contained herein may constitute 
forward-looking information under applicable securities law. The words 
"anticipate", "expect", "believe", "may", "should", "will", "estimate", 
"project", "outlook", "forecast" or other similar words are used to identify 
such forward-looking information and statements. Forward-looking statements 
in this document may include statements, express or implied, regarding the 
Company`s outlook as to the results of any appeals or post-judgment motions, 
and the result of this lawsuit on the Company`s operations. These 
forward-looking statements are based upon various underlying factors and 
assumptions, including those with regards to the current state of the law 
surrounding patents, the state of the economy and the oil and gas exploration 
and production business, in particular; the Company's business prospects and 
opportunities; and estimates of the financial and operational performance of 
Pason. 
Forward-looking information and statements are subject to known or unknown 
risks and uncertainties that may cause actual results to differ materially 
from those anticipated or implied in the forward-looking information and 
statements. Risk factors that could cause actual results or events to differ 
materially from current expectations include, among others, changes to the 
relevant patent case and statutory laws, the ability of Pason to successfully 
implement its strategic initiatives and whether such strategic initiatives 
will yield the expected benefits, the operating performance of Pason's assets 
and businesses, the price of energy commodities, competitive factors in the 
energy industry, changes in laws and regulations affecting Pason's businesses, 
technological developments, and general economic conditions. 
Readers are cautioned not to place undue reliance on forward-looking 
statements as there can be no assurance that the plans, intentions or 
expectations upon which they are placed will occur. Such forward looking 
statements, although considered reasonable by management as of the date 
hereof, may prove to be incorrect and actual results may differ materially 
from those anticipated. Forward-looking statements contained in this press 
release are expressly qualified by this cautionary statement. 
Additional information on risks and uncertainties and other factors that could 
affect Pason's operations or financial results are included in Pason's reports 
on file with the Canadian securities regulatory authorities and may be 
accessed through the SEDAR website (www.sedar.com or through Pason's website 
www.pason.com). Furthermore, the forward looking statements contained in 
this news release are made as of the date of this news release, and Pason does 
not undertake any obligation to update publicly or to revise any of the 
included forward-looking statements, whether as a result of new information, 
future events or otherwise, except as expressly required by securities law. 
For more information about Pason Systems Inc., visit the Company's  website 
atwww.pason.com or contact: 
Marcel Kessler President and CEO 403-301-3400 marcel.kessler@pason.com 
David Elliott Chief Financial Officer 403-301-3441 david.elliott@pason.com 
SOURCE: Pason Systems Inc. 
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CO: Pason Systems Inc.
ST: Alberta
NI: OIL  
-0- Dec/07/2012 03:21 GMT
 
 
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