SOURCE: Channell Commercial Corporation

Channell Commercial Corporation

November 17, 2015 19:30 ET

Channell Commercial Corporation Resolves Patent Infringement Litigation Against PenCell Plastics, Inc., Hubbell Incorporated, and Hubbell Power Systems, Inc. for Upfront Payment and Ongoing Royalties

LOS ANGELES, CA--(Marketwired - November 17, 2015) - Channell Commercial Corporation ("Channell" or the "Company") of Temecula, California, announced that it has resolved its patent infringement lawsuit against PenCell Plastics, Inc. of Rocky Mount, North Carolina, Hubbell Incorporated of Shelton, Connecticut, and Hubbell Power Systems, Inc. of Columbia, South Carolina. The lawsuit generally related to Channell's patented grade level vaults and pits for underground closure connections and fiber storage.

Channell sued PenCell and Hubbell on March 11, 2014 in the United States District Court for the Central District of California (Case No. EDCV 14-00474 TJH (SPx)), seeking a multimillion dollar damages award for patent infringement. Channell asserted infringement of its U.S. Patent No. 7,381,888, entitled "Grade Level Enclosures for Underground Utility Connections," and its U.S. Patent No. 7,385,137, entitled "Enclosure System for Underground Utility Connection," by certain PenCell-branded products. The '888 patent relates to Channell's sidewall structural design for protecting underground closures and cable storage; the '137 patent relates to Channell's split cover with pedestal housing for converting below-ground closure installations to above-ground pedestal or street pillar installations.

Channell's lawsuit also asserted a claim for intentional interference with Channell's prospective economic advantage, contending that defendants worked together to sell patent infringing closures to Channell's customers, with the intention of disrupting Channell's future commercial relationships with those customers.

Although terms of the settlement are confidential, Hubbell and Hubbell Power Systems, which acquired PenCell Plastics in 2014, executed a settlement agreement with Channell that includes an upfront payment to Channell plus ongoing royalties for the life of Channell's '888 and '137 patents.

Channell's CEO, William Channell, Jr., stated: "Channell is committed to ensuring that it receives fair compensation from those who would infringe its valuable intellectual property rights or copy its forward-thinking designs surrounding our protected SGLB and BULK bodies. This is the second patent infringement lawsuit that we have successfully settled, giving strength to our patent portfolio that covers our underground closures and related products. We are pleased the lawsuit has been settled to both parties' satisfaction."

Channell is represented by Quinn Emanuel Urquhart & Sullivan, LLP and Christie, Parker & Hale, LLP.

About Channell

Channell is a leading manufacturer of outside plant (OSP) underground closures, vaults and pits for the broadband, telecommunications, power, signal and lighting, gas and other low voltage, copper coax and fiber cabling networks. Channell's versatile utility vaults and pits are designed for below-ground level usage such as greenbelts, sidewalks, driveways, and roadways. These universal chambers provide various security options, while withstanding exposure to different environmental conditions and heavy vehicle loads.

Channell also manufactures a comprehensive line of thermoplastic and metal fabricated closures, and advanced copper connectivity and fiber solution products. The Company is headquartered in Temecula, California with international operations in Australia, Canada, Mexico and the United Kingdom. The Company's website is www.channell.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking information concerning the Company's plans to pursue litigation. The statements address future events and conditions and are subject to risks, uncertainties, and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, results could differ from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ from those indicated in the forward-looking statements include, but are not limited to, the risk that litigation is an inherently complex and uncertain process so it cannot be predicted with accuracy, whether the Company will ultimately prevail on its claims, or the amount of time and resources that will be necessary to resolve the claims. Forward-looking statements are made as of the date of this press release. Except as required by law, the Company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

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