CALGARY, July 5, 2013 /CNW/ - Pason Systems Inc. (TSX: PSI) ("Pason" or
the "Company") announced today that a judgment against Pason has been
issued from the Federal Court of Canada, Trial Division in the ongoing
patent dispute with the Company's primary competitor around Pason's
automatic driller product (the "AutoDriller").
The plaintiff was awarded damages in the amount of $52.9 million, plus
interest and court costs. The amounts of interest and court costs will
be determined upon further submissions to the Court.
The Company is reviewing the lengthy and complex judgment and is
considering its legal options including post-judgment motions and
appeals to the Federal Court of Appeal. The Company believes this
judgment will have no material adverse impact on its day-to-day
business operations in light of the April 19, 2013 expiration of the
patent at issue.
Litigation between the Company and the plaintiff regarding the
AutoDriller has been ongoing since 2003. The plaintiff has alleged
that the Company's AutoDriller infringes on a patent owned by the
plaintiff (the "142 Patent") which also expired on April 19, 2013. The
original suit was filed in Colorado and included a jury trial in 2008
and subsequent bench trial in 2011, with a resulting judgment entered
on June 18, 2012. That judgment from the Colorado court is on appeal
to the US Court of Appeals for the Federal Circuit where a decision is
pending. That Colorado case relates only to the technology used in
Pason's AutoDriller in the US prior to March 2009. The plaintiff is
also challenging Pason's use in the US of its modified technology
implemented in March 2009 in a case commenced in Texas in 2012.
Pleadings have been exchanged in that Texas case and pre-trial hearings
have been tentatively schedule for the fall of 2013.
The Canadian case, that is the subject of the judgment identified in
this press release, has been ongoing since 2005. It represents the
plaintiff's parallel suit based on the equivalent Canadian registration
of the 142 Patent.
As at March 31, 2013, the Company had reserved $53.1 million in its
consolidated financial statements for the three AutoDriller cases
described above.
Pason Systems Inc.
Pason Systems Inc. is a leading provider of instrumentation systems to
land-based and offshore drilling rigs worldwide. The company's rental
solutions, which include data acquisition, wellsite reporting, remote
communications, and web-based information management, maximize rig
uptime, improve work efficiency, and minimize operating costs. Pason's
common shares trade on the Toronto Stock Exchange under the symbol PSI.
Certain information regarding the Company contained herein may
constitute forward-looking information under applicable securities
law. The words "anticipate", "expect", "believe", "may", "should",
"will", "estimate", "project", "outlook", "forecast" or other similar
words are used to identify such forward-looking information and
statements. Forward-looking statements in this document may include
statements, express or implied, regarding the financial position of the
Company and the impact of the subject matter of the press release and
expected impact of future commitments. These forward-looking
statements are based upon various underlying factors and assumptions,
including those with regards to the Company's assets, liabilities,
business prospects and opportunities; and estimates of the financial
and operational performance of Pason.
Certain information regarding the Company contained herein may
constitute forward-looking information under applicable securities
law. The words "anticipate", "expect", "believe", "may", "should",
"will", "estimate", "project", "outlook", "forecast" or other similar
words are used to identify such forward-looking information and
statements. Forward-looking statements in this document may include
statements, express or implied regarding the anticipated business
prospects and financial performance of Pason; anticipated results of
litigation; expectations or projections about future strategies,
including litigation strategies; expected and future cash flows and
revenues; and expected impact of future commitments or contingencies.
These forward-looking statements are based upon various underlying
factors and assumptions, including the Company's assets, liabilities,
business prospects and opportunities; and estimates of the financial
and operational performance of Pason.
Forward-looking information and statements are subject to known or
unknown risks and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
information and statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the ability of Pason to successfully implement
its strategic initiatives (including litigation strategy) and whether
such strategic initiatives will yield the expected benefits, the
operating performance of Pason's assets and businesses, the price of
energy commodities, competitive factors in the energy industry, changes
in laws and regulations affecting Pason's businesses, the actions of
litigants and other claimants, technological developments, and general
economic conditions.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such forward
looking statements, although considered reasonable by management as of
the date hereof, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement.
Additional information on risks and uncertainties and other factors that
could affect Pason's operations or financial results are included in
Pason's reports on file with the Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com or through Pason's website www.pason.com). Furthermore, any forward looking statements contained in this news
release are made as of the date of this news release, and Pason does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required
by securities law.
SOURCE: Pason Systems Inc.
