Rackspace, Red Hat Win Decisive Patent Victory

  Rackspace, Red Hat Win Decisive Patent Victory

   Eastern District of Texas grants early motion to dismiss and invalidates
                     patent claim alleged to cover Linux

Business Wire

RALEIGH, N.C. -- March 28, 2013

Red Hat, Inc. (NYSE: RHT) and Rackspace Hosting, Inc. (NYSE: RAX) announced
today that they have won a federal court decision granting early dismissal of
all claims in a lawsuit brought by the patent assertion entity Uniloc USA,
Inc.

Plaintiff Uniloc USA, Inc. is a frequent litigator, having brought patent
lawsuits against many high-tech companies including Adobe, Microsoft, Sony and
Symantec. Rackspace provides its customers with managed servers running the
Linux operating system. Red Hat, which supplies Linux to Rackspace, provided
Rackspace’s defense as part of Red Hat’s commitment to standing behind
customers through Red Hat’s Open Source Assurance program.

Uniloc USA, Inc. filed the complaint against Rackspace in June 2012 in federal
court in the Eastern District of Texas. The complaint alleged that the
processing of floating point numbers by the Linux operating system violated
U.S. Patent 5,892,697. Rackspace and Red Hat immediately moved to dismiss the
case prior to filing an answer. In dismissing the case, Chief Judge Leonard
Davis found that Uniloc’s claim was unpatentable under Supreme Court case law
that prohibits the patenting of mathematical algorithms. This is the first
reported instance in which the Eastern District of Texas has granted an early
motion to dismiss finding a patent invalid because it claimed unpatentable
subject matter. In the ruling released today, Judge Davis wrote that the
asserted claim “is a mathematical formula that is unpatentable under Section
101.”

“The early dismissal of this case delivers a clear message that patent
assertion entities can’t expect quick settlements on weak claims, a tactic
many patent assertion entities use to monetize questionable patents,” said
Alan Schoenbaum, Rackspace General Counsel. “We salute Red Hat for its
outstanding defense and for standing firm with its customers in defeating this
patent troll. We hope that many more of these spurious software patent
lawsuits will be dismissed on similar grounds."

“This is a major victory for open source software,” said Michael Cunningham,
Executive Vice President and General Counsel, Red Hat. “We are gratified to
have beaten another patent for open source and for our customer. We also
believe that the thoughtful dismissal by Chief Judge Davis on a 12(b)(6)
motion will encourage earlier decisions by other courts on invalid software
patents, reducing vexatious litigation by non-producing entities and their
corrosive effect on innovation.”

About Red Hat

Red Hat is the world's leading provider of open source software solutions,
using a community-powered approach to reliable and high-performing cloud,
Linux, middleware, storage and virtualization technologies. Red Hat also
offers award-winning support, training, and consulting services. As the
connective hub in a global network of enterprises, partners, and open source
communities, Red Hat helps create relevant, innovative technologies that
liberate resources for growth and prepare customers for the future of IT.
Learn more at http://www.redhat.com.

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Litigation Reform Act of 1995. Forward-looking statements provide current
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vulnerabilities; ineffective management of, and control over, the Company's
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changes in and a dependence on key personnel, as well as other factors
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Contact:

Red Hat, Inc.
Stephanie Wonderlick, 571-421-8169
swonderl@redhat.com
 
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