Network-1 Receives Ruling in Markman Hearing in Patent Infringement Action Against D-Link Corporation
NEW YORK, November 27, 2006 -- Network-1 Security Solutions, Inc. (OTC Bulletin Board: NSSI - News) today announced that the United States District Court for the Eastern District of Texas issued a ruling in the ongoing patent infringement action between Network-1 and D-Link Systems, Inc. and D-Link Corporation ("D-Link") relating to U.S. Patent No. 6,218,930 ("Remote Power Patent"). The ruling arises from a special proceeding under U.S. patent law called a "Markman hearing," where both sides present their arguments to the court as to how they believe certain claim terms from the patent at issue in the lawsuit should be interpreted.
In the ruling, the Court's
constructions on 5 of the 6 claim terms at issue were consistent
with the constructions sought by Network-1 in its proposed
constructions. With respect to the 6th claim term, the Court's
construction was consistent with agreed upon portions of the
constructions submitted by Network-1 and D-Link but was also
modified by the Judge in a manner that Network-1 believes is
consistent with Network-1's overall position on the claim term.
Corey M. Horowitz, Chairman and CEO, of Network-1 stated, "We are very pleased with the Markman ruling and remain confident in our position concerning the infringement of the Remote Power Patent. We believe that the ruling represents a significant step in Network-1's efforts to license the Remote Power Patent to manufacturers and suppliers of Power over Ethernet equipment."
On August 11, 2005, the Company announced that it had filed a complaint against D-Link in the Eastern District of Texas, for infringement of the Remote Power Patent. The '930 Patent, entitled "Apparatus and Method for Remotely Powering Access Equipment Over a 10/100 Switched Ethernet Network," relates to several key technologies underlying the delivery or receipt of power over data communications networks, including products compliant with the IEEE 802.3af Power over Ethernet standard that was approved in June 2003 by the Institute of Electrical and Electronic Engineers. Power over Ethernet governs the delivery of power over Ethernet cables in order to remotely power network connected devices including wireless access points, RFID card readers, VoIP telephones and network cameras. The '930 Patent was granted by the United States Patent and Trademark Office on April 17, 2001 and expires on March 7, 2020.
Network-1 seeks an award of damages in the form of monetary damages based upon reasonable royalties as well as a trebling of damages for D-Link's continued willful infringement of the '930 Patent. Network-1 further requests that the Court permanently enjoin D-Link from importation and sale of D-Link's Power over Ethernet products into the United States. The outcome of the Markman hearing and the upcoming trial is an important part of the Network-1's strategy for pursuing its patent infringement claims relating to the Remote Power Patent. Network-1's ability to realize licensing revenue from the Remote Power Patent will be severely impaired if the litigation is not successful.
ABOUT NETWORK-1 SECURITY SOLUTIONS, INC.
Network-1 Security Solutions, Inc. is engaged in the acquisition, development, licensing and protection of its intellectual property and proprietary technologies. As part of its business strategy it is offering licenses to third parties who Network-1 believes could benefit from the technologies covered by its patents. In February 2004, the Company initiated its licensing efforts relating to its patent (U.S. Patent No. 6,218,930) covering the remote delivery of Power over Ethernet cables.
This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements address future events and conditions concerning
the Company's business plans. Such statements are subject to a number of
risk factors and uncertainties as disclosed in the Company's Quarterly
Report on Form 10-QSB for the three months ended September 30, 2006
including, among others, the ability of Network-1 to obtain license
agreements from third parties for its patent portfolio, uncertainty of
patent litigation, the Company's ability to achieve revenues and profits
from its patent portfolio, the Company's ability to raise capital when
needed, future economic conditions and technology changes and legislative,
regulatory and competitive developments. Except as otherwise required to
be disclosed in periodic reports, the Company expressly disclaims any
future obligation or undertaking to update or revise any forward-looking
statement contained herein.