Absolute Software Reaches Favorable Settlement Agreement in Precedent Setting Anti-Theft Patent Infringement Case
Following the Ruling by the United States Court of Appeals for the Federal Circuit in Favor of Absolute Software, Stealth Signal Consents to Final Settlement
Vancouver, Canada: May 8, 2012– Absolute® Software Corporation(“Absolute” or the “Company”) (TSX: ABT), the leading provider of firmware-embedded endpoint security and management solutions, today announced it has reached a settlement with Stealth Signal (now known as XTool Mobile Security, Inc.) by way of a stipulated judgment. The agreed damages were $5.17m USD and Stealth Signal satisfied the judgment by granting Absolute a 30 day option to acquire all of the assets of Stealth Signal at no additional cost. Stealth Signal also agreed to begin the steps to dissolve the company within 60 days. The monetary damages in the final judgment have not been recorded as an asset as Absolute believes Stealth Signal has no material assets. Accompanying the monetary damages will be an injunction permanently restraining and enjoining Stealth Signal from making, using, offering to sell, selling or importing into the United States products infringing Absolute Patents.
In October 2011, the US Court of Appeals reversed the District Court’s summary judgment ruling that Stealth Signal did not infringe Absolute Patents (U.S. Patent Nos. 6,244,758, 6,300,863, and 6,507,914) and remanded the issue of whether Stealth Signal is infringing Absolute Patents to trial. The Court of Appeals also affirmed the District Court’s summary judgment that Absolute did not infringe Stealth Signal Patent (U.S. Patent No. 5,406,269), as Stealth Signal had claimed.
“We are glad to have reached a settlement in this case following the US Court of Appeals decision on this matter as it validates our growing patent portfolio and innovative Computrace technology platform,” stated John Livingston, Chairman and Chief Executive Officer at Absolute Software. “The decision by the Court and subsequent settlement reinforces our position that Absolute is indeed the true inventor and market leader that pioneered the development of the remote location tracking and anti-theft category for electronic devices. We will continue to offer patent licenses to those who wish to deliver similar functionality in the marketplace. Equally, we will continue to vigorously defend our patents as required.”
Absolute empowers more than 12,000 customers worldwide to protect devices, data, applications, and users against theft or attack — both on and off the corporate network. With the industry’s only tamper-proof endpoint visibility and control solution, Absolute allows IT organizations to enforce asset management, security hygiene, and data compliance for today’s remote digital workforces. Absolute’s patented Persistence®technology is embedded in the firmware of Dell, HP, Lenovo, and 22 other leading manufacturers’ devices for vendor-agnostic coverage, tamper-proof resilience, and ease of deployment. See how it works atwww.absolute.comand follow us at@absolutecorp.
This press release contains forward-looking statements and financial outlook that involve risks and uncertainties. These forward-looking statements and financial outlook relate to, among other things, the expected performance, functionality and availability of the Company’s services and products, and other expectations, intentions and plans contained in this press release that are not historical facts. When used in this press release, the words “plan,” “expect,” “believe” and similar expressions generally identify forward-looking statements. These statements reflect the Company’s current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and general market conditions. In light of the many risks and uncertainties, readers of the press release should understand that Absolute cannot assure them that the forward-looking statements and financial outlook contained in this press release will be realized. Furthermore, the forward-looking statements and financial outlook contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements and financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.