Decision from Canadian Court in AutoDriller Litigation

CALGARY, July 5, 2013 /CNW/ - Pason Systems Inc. (TSX: PSI) ("Pason" or the 
"Company") announced today that a judgment against Pason has been issued from 
the Federal Court of Canada, Trial Division in the ongoing patent dispute with 
the Company's primary competitor around Pason's automatic driller product (the 
"AutoDriller"). 
The plaintiff was awarded damages in the amount of $52.9 million, plus 
interest and court costs. The amounts of interest and court costs will be 
determined upon further submissions to the Court. 
The Company is reviewing the lengthy and complex judgment and is considering 
its legal options including post-judgment motions and appeals to the Federal 
Court of Appeal. The Company believes this judgment will have no material 
adverse impact on its day-to-day business operations in light of the April 19, 
2013 expiration of the patent at issue. 
Litigation between the Company and the plaintiff regarding the AutoDriller has 
been ongoing since 2003. The plaintiff has alleged that the Company's 
AutoDriller infringes on a patent owned by the plaintiff (the "142 Patent") 
which also expired on April 19, 2013. 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. That judgment from the 
Colorado court is on appeal to the US Court of Appeals for the Federal Circuit 
where a decision is pending. That Colorado case relates only to the 
technology used in Pason's AutoDriller in the US prior to March 2009. The 
plaintiff is also challenging Pason's use in the US of its modified technology 
implemented in March 2009 in a case commenced in Texas in 2012. Pleadings 
have been exchanged in that Texas case and pre-trial hearings have been 
tentatively schedule for the fall of 2013. 
The Canadian case, that is the subject of the judgment identified in this 
press release, has been ongoing since 2005. It represents the plaintiff's 
parallel suit based on the equivalent Canadian registration of the 142 Patent. 
As at March 31, 2013, the Company had reserved $53.1 million in its 
consolidated financial statements for the three AutoDriller cases described 
above. 
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 
financial position of the Company and the impact of the subject matter of the 
press release and expected impact of future commitments. These 
forward-looking statements are based upon various underlying factors and 
assumptions, including those with regards to the Company's assets, 
liabilities, business prospects and opportunities; and estimates of the 
financial and operational performance of Pason. 
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 
anticipated business prospects and financial performance of Pason; anticipated 
results of litigation; expectations or projections about future strategies, 
including litigation strategies; expected and future cash flows and revenues; 
and expected impact of future commitments or contingencies. These 
forward-looking statements are based upon various underlying factors and 
assumptions, including the Company's assets, liabilities, 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, the ability of 
Pason to successfully implement its strategic initiatives (including 
litigation strategy) 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, the actions of 
litigants and other claimants, 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, any 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. 
To view this news release in HTML formatting, please use the following URL: 
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CO: Pason Systems Inc.
ST: Alberta
NI: OIL LAW VERDICTS LAWVIEWS  
-0- Jul/05/2013 20:16 GMT