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,

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

“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.

Forward-Looking Statements

Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements provide current
expectations of future events based on certain assumptions and include any
statement that does not directly relate to any historical or current fact.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important factors,
including: risks related to delays or reductions in information technology
spending; the effects of industry consolidation; the ability of the Company to
compete effectively; uncertainty and adverse results in litigation and related
settlements; the integration of acquisitions and the ability to market
successfully acquired technologies and products; the inability to adequately
protect Company intellectual property and the potential for infringement or
breach of license claims of or relating to third party intellectual property;
the ability to deliver and stimulate demand for new products and technological
innovations on a timely basis; risks related to data and information security
vulnerabilities; ineffective management of, and control over, the Company's
growth and international operations; fluctuations in exchange rates; and
changes in and a dependence on key personnel, as well as other factors
contained in our most recent Quarterly Report on Form 10-Q (copies of which
may be accessed through the Securities and Exchange Commission's website at
http://www.sec.gov), including those found therein under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations". In addition to these factors, actual future
performance, outcomes, and results may differ materially because of more
general factors including (without limitation) general industry and market
conditions and growth rates, economic and political conditions, governmental
and public policy changes and the impact of natural disasters such as
earthquakes and floods. The forward-looking statements included in this press
release represent the Company's views as of the date of this press release and
these views could change. However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These forward-looking
statements should not be relied upon as representing the Company's views as of
any date subsequent to the date of this press release.

Red Hat and JBoss are trademarks of Red Hat, Inc., registered in the U.S. and
 other countries. Linux® is the registered trademark of Linus Torvalds in the
                          U.S. and other countries.


Red Hat, Inc.
Stephanie Wonderlick, 571-421-8169
Press spacebar to pause and continue. Press esc to stop.