Network-1 shares fall 33% after patent verdict

IP licensing company Network-1 Technologies, Inc. said a jury in the US District Court for the Eastern District of Texas, Tyler Division, determined that certain claims of Network-1’s Remote Power Patent are invalid and not infringed by Hewlett-Packard.

Shares of Network-1 Technologies fell about 33%.

“The jury verdict of invalidity and non-infringement, or a final judgment based on this verdict, may be determined to relieve some of Network-1’s licensees of its Remote Power Patent from their obligation to continue to pay royalties to Network-1,” said Network-1.

“Such a determination would have a material adverse effect on Network-1’s business and results of operations.”

Network-1 Technologies CEO Corey Horowitz said: “This is a very disappointing result.

“We have spent 14 years licensing the Remote Power Patent and currently have 27 of the industry’s largest PoE vendors as licensees to this important technology.

“In addition, the Remote Power Patent has generated over $116 million to Network-1 and its shareholders.

“Importantly, Network-1’s licensing activities have always been responsible and aimed at licensing the patent on reasonable and non-discriminatory terms.

“The Remote Power Patent has survived multiple challenges at the United States Patent Office, including two reexaminations and three Inter Partes Review proceedings which were affirmed by the United States Court of Appeals for the Federal Circuit.

“In light of the history of the Remote Power Patent, it is very difficult to understand the basis of the jury’s verdict and we will analyze all the alternatives available to Network-1, including a potential appeal of its findings.”