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. 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
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 email@example.com
David Elliott Chief Financial Officer 403-301-3441 firstname.lastname@example.org
SOURCE: Pason Systems Inc.
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-0- Dec/07/2012 03:21 GMT
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