Eicon Networks Corporation

Eicon Networks Corporation

July 29, 2005 13:50 ET

Eicon Networks Announces U.S. District Court Refusal of Brooktrout Requests

MONTREAL--(CCNMatthews - Jul 29, 2005) -

Eicon Networks Corporation ("Eicon"), a global leader in providing reliable communication products for networked business applications, announced today that the U.S. District Court for the Eastern District of Texas has refused the request of its competitor Brooktrout Inc. for an order that would have prevented Eicon from selling its Diva Server products through U.S. distribution channels. The Court also refused Brooktrout's request to order Eicon to modify the Diva Server to disable DID capability for fax calls.

Brooktrout sued Eicon in March 2003, asserting that the use of Eicon's Diva Server digital board products for routing inbound faxes using DID signals infringed Brooktrout's U.S. patents. It should be noted that the Brooktrout patents cover only the United States and have no foreign counterparts. In November 2004 following a two week trial in Marshall, Texas, a jury determined that Eicon and its subsidiary Eicon Networks Inc. had induced infringement of two U.S. Patents owned by Brooktrout in a few situations, but that its actions were not willful. The jury found only limited non-willful inducement of infringement, and awarded Brooktrout damages of $94,500, a nominal amount that represented less than 4% of the $2,405,274 initially sought by Brooktrout in the action.

In its Memorandum and Order dated July 25, 2005, the Court ruled that Brooktrout is not entitled to the sweeping injunctive relief that it was seeking, particularly in light of the limited liability finding by the jury. As the Court noted, "It must be remembered that the mere sale of the Diva Server in its current form, without any encouragement to infringe the patents, does not constitute unlawful conduct."

"We are pleased that the Court entered only a narrowly tailored order consistent with the few specific instances of non-willful inducement on which the jury's limited finding of infringement was based," said Barbara Moore, a principal at Edwards and Angell who was Eicon's lead counsel in the case. "As part of its efforts instituted in 2003 designed to avoid encouraging anyone to infringe Brooktrout's patents, Eicon had already voluntarily taken most of the steps required by the Court. Eicon is pleased that the Court rejected Brooktrout's requests. Eicon will continue to sell, service and support its Diva Server products worldwide."

About Eicon Networks Corporation

Eicon has been designing, manufacturing and marketing leading brands of communications products since 1984. The company's portfolio includes the Diva range of media processing products for voice, speech, conferencing, fax, and document handling applications, and the Eiconcard range of transaction processing products. Eicon distributes, markets and supports its products in more than 80 countries through a network of channel partners, telecommunication companies (telcos), internet service providers (ISPs), independent software vendors (ISVs) and original equipment manufacturers (OEMs). Information about Eicon Networks is available at www.eicon.com.

Eicon, Eicon Networks, Diva, and Diva Server are either registered trademarks or trademarks of Eicon Networks Corporation or its subsidiaries. The names of actual companies and products mentioned herein are the trademarks of their respective owners. Eicon encourages all users of its products to procure all necessary intellectual property licenses required to implement their concepts or applications, which licenses may vary from country to country.

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