There are some survivors of the dot-com era: One is 01 Communique Laboratory Inc., which defines itself as "an innovative force in the development and delivery of remote access services and integrated communications software."
Its main product is I'm InTouch, which allows users to "run programs, transfer and manage files, work with wireless email, contact management and online calendar events; virtually anything they can do while sitting at their computer."
The company, which traded at a high of $14.50 in March, 2000, and a low of 6.5¢ in April, 2003, has a U.S. patent on that technology. That patent was awarded in August, 2005.
And 01 Communique, which has a market cap of $43-million, is doing all it can to defend its interests and protections afforded by U.S. patent No. 6,928,479. In February, 2006, it filed a complaint alleging patent infringement against Florida-based Citrix Systems Inc., a Nasdaqlisted company with a market cap of US$7.6-billion.
"Plaintiff 01 has been irreparably harmed and monetarily damaged by Defendant's infringement of the '479 patent," said the statement, in which 01 seeks cash from, and a permanent injunction against, Citrix.
Since 01 filed the suit, the market has taken a more positive view of the company. Back then, the stock traded around 30¢. Since then, it has moved up steadily and hit a 52-week high of 92¢ two weeks ago. There have been two spikes, in March and late September. It has about $3.3-million in cash -- good for at least two years of expenditures at the current rate.
What explains the recent jump? A couple of factors may be at work: - The chance that there may be a settlement. A few weeks ago, Citrix and 01 Communique had their first mediation discussions. Brian Stringer, 01 Communique's chief financial officer, said, "We were happy with the progress that was made. We got our point across and they got theirs. More sessions will be required before we would come to a settlement. But quite frankly, we gave a good case. This is a case of infringement and we would like to see them stop infringing," said Stringer, who feels the market is looking at "our intellectual property and how it reaches out far beyond Citrix." - Citrix may launch a takeover bid. One observer says this may be the outcome but it will occur only if the premium is high enough. Stringer said, "The shareholders call the shots. They have said 'we support you, go for it.' "
In the suit, today is the last day for testimony from expert witnesses. Next month, summary-judgement motions will be heard. The jury trial starts next March.
The good thing about the lawsuit: It isn't costing 01 Communique any cash. It hired Baker Hostetler, whose Washington and Cleveland offices are on the case. The law firm took the assignment only after it did its own due diligence -- a four-month process. Baker Hostetler then decided to take the case on a contingency basis.