Route1 Announces Investment by Bench Walk Advisors in its Lawsuit Against AirWatch for Patent Infringement
19 June 2018 - 2:43AM
Route1 Inc. (OTCQB:ROIUF) (TSX-V:ROI) (the “Company” or
“Route1”), a leading technology solutions innovator dedicated to
delivering secure data protection technologies and mobility
solutions for government and the enterprise sector, today announced
that an affiliate of Bench Walk Advisors LLC (“Bench Walk”) has
made a US $1,000,000 non-recourse investment directly into Route1’s
lawsuit against AirWatch LLC (“AirWatch”) alleging that AirWatch is
infringing Route1’s U.S. Patent No 7,814,216 (the “’216 Patent”).
Key terms of Bench Walk’s investment are as
follows:
- The US$ 1,000,000 investment will
be paid by Bench Walk to Route1 as follows: (a) US $152,510 to be
paid within 10 business days after signing, representing 40% of the
patent litigation expenses incurred to date; and (b) thereafter 40%
of the amount of each invoice paid by Route1 in connection with
legal costs and out of pocket expenses incurred in bringing the
lawsuit.
- Bench Walk is entitled to a share
of any proceeds awarded to Route1 from the lawsuit equal to: (a)
the sum of all investments advanced by Bench Walk; plus (b)
the greater of (i) US $2,000,000 (US $3,000,000 if the lawsuit
proceeds to trial); and (ii) 10% of the award from the
lawsuit.
- Provided that Route1 is not in
breach of any of its obligations under the agreement, Bench Walk
will have no recourse to any other assets of Route1.
- If Route1 pursues any follow-on
lawsuit and does not seek to sell a portion or to engage in a
transaction having substantially similar economic effect, then
Route1 shall pay to Bench Walk 5% of the gross proceeds awarded to
Route1 from that follow-on lawsuit (subject to a maximum aggregate
payment to Bench Walk under this provision of US $1,500,000).
“We are very pleased to have a third party
invest alongside us in our patent infringement lawsuit against
AirWatch. We have strongly believed since the start of the
action that our ‘216 patent is valid, AirWatch has infringed on it
and that the damages are material”, said Tony Busseri, CEO of
Route1 Inc. “We were approached by multiple parties after the
March 2018 PTAB denial of AirWatch’s IPR motion and we ultimately
selected Bench Walk. Their track record of working with
companies like Route1 and realizing positive patent infringement
outcomes marries up well with our IP realization strategy.”
Busseri continued, “The next milestone in the
litigation process is the Markman hearing to be held on July 2,
2018 after which the court will determine the way in which the
claims in the ‘216 patent will be interpreted by a jury at
trial.”
The Lawsuit
Route1 filed a lawsuit against AirWatch in
federal court in Delaware on March 27, 2017, alleging that AirWatch
is infringing Route1’s U.S. Patent No 7,814,216 (the “’216
Patent”). The civil action number is 1:17-cv-00331-RGA and
was assigned to the Honorable Richard G. Andrews.
On September 22, 2017, AirWatch filed an IPR
petition with the Patent and Trial Appeal Board (“PTAB”) seeking a
determination that the claims of the ‘216 Patent are invalid.
Route1 filed its preliminary response to the IPR petition on
December 22, 2017. The PTAB issued its decision on March 20,
2018 determining that AirWatch had not demonstrated a reasonable
likelihood that it would prevail in establishing that any claims of
the ‘216 patent are invalid and, accordingly, denied the IPR
petition.
A calendar of events related to the lawsuit can
be found at: www.route1.com/investors/patent-litigation/. The
information provided approximates how the process for the patent
lawsuit has unfolded and may continue to unfold.
About Route1 Inc.Route1 Inc. is
a leading technology solutions innovator dedicated to enabling
mobility for government and focused enterprise vertical markets by
delivering secure data protection technologies and mobility
solutions. The Company’s suite of patented enterprise
security solutions, which includes MobiKEY, ActionPLAN, Powered by
MobiNET, MobiENCRYPT and DerivID, delivers best-in-class
authentication, data security, data analytics and secure remote
access, running on a proven, trusted infrastructure, which meets or
exceeds the highest security standards for government and
industry. Route1 has earned a Full Authority to Operate from
the U.S. Department of Defense, the U.S. Department of the Navy,
the U.S. Department of the Interior, and other government
agencies. The Company is proud to be a trusted solutions
partner in the banking, healthcare, legal, education, public
sector, manufacturing, logistics, field service and warehousing
industries.
Through Route1’s wholly owned subsidiary, Group
Mobile Int’l, LLC, the Company is a trendsetter in the enterprise
technology space by providing expertise in building mobility
solutions and deploying complete offerings into vertical markets
through specialized hardware, software and our expanding services
capabilities. Route1 is a pioneer in IIoT (Industrial
Internet of Things) through the delivery of our ActionPLAN, Powered
by MobiNET technology, which not only captures data from electrical
inputs including sensor data but takes it to the next level by
interpreting, analyzing, transforming the data to deliver
strategic business intelligence.
The diverse but complimentary technologies our
Company provides, along with the level of experience and expertise
of our team, uniquely positions us as the pre-emptive leader in
secure and complete mobile technology solutions. Route1
remains focused and dedicated to serving the needs of our business
partners; to positively influence their profitability, contribute
to their longevity and share in their success. With offices
and staff in Washington, D.C., Boca Raton, FL, Phoenix AZ,
Chattanooga TN and Toronto, Canada, Route1 provides leading-edge
solutions to public and private sector clients around the
world. Route1 is listed on the OTCQB in the United States
under the symbol ROIUF and in Canada on the TSX Venture Exchange
under the symbol ROI. For more information, visit:
www.route1.com.
For More Information Contact:
Tony BusseriCEO, Route1 Inc.+1 416
814-2635tony.busseri@route1.com
This news release, required by applicable
Canadian laws, does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
© 2018 Route1 Inc. All rights reserved. No part
of this document may be reproduced, transmitted or otherwise used
in whole or in part or by any means without prior written consent
of Route1 Inc. See https://www.route1.com/terms-of-use/ for
notice of Route1’s intellectual property.
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