Media Statement Issued by 3Com: 3Com Indemnified by Palm in Lawsuit by Xerox Over ``Graffiti'' Technology.Business Editors/High-Tech Writers SANTA CLARA, Calif.--(BUSINESS WIRE)--March 13, 2002 The following is a media statement issued by 3Com Corporation (Nasdaq:COMS COMS 3Com Corporation (stock symbol) COMS Certified Orientation and Mobility Specialist COMS Continuous Opacity Monitoring Systems COMS City of Manchester Stadium (UK) ) regarding indemnification by Palm in lawsuit by Xerox over "Graffiti" technology: In response to media and investor inquiries, 3Com Corporation is issuing this statement as a reminder that as previously disclosed in 3Com's SEC filings and pursuant to an agreement executed in February 2000 by 3Com and Palm, Inc., 3Com is indemnified by Palm with respect to any potential liability from the current patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between Xerox Corporation and Palm. The patent litigation relates to alleged infringement of a handwriting recognition patent allegedly covering Palm's use of Graffiti in its handheld computers. The following is background about the history of these companies and this lawsuit: Xerox Corporation filed its patent infringement lawsuit against U.S. Robotics Corporation in April, 1997 -- before 3Com Corporation acquired USR and its subsidiary, Palm. In 2000, 3Com spun off Palm as an independent, publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . As part of Palm's separation from 3Com it agreed to indemnify and hold harmless 3Com against any damages or losses from the Xerox lawsuit. (More legal and historical details can be found in 3Com's 10-Q for Q2 FY02 which it filed with the SEC in January 2002: (On April 28, 1997, Xerox Corporation (Xerox) filed suit against U.S. Robotics Corporation and U.S. Robotics Access Corp. in the United States District Court for the Western District of New York The United States District Court for the Western District of New York is the Federal district court whose jurisdiction comprises the following counties: Allegany, Cattaraugus, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Schuyler, Seneca, . The case is now captioned Xerox Corporation v. 3Com Corporation, U.S. Robotics Corporation, U.S. Robotics Access Corp., Palm Computing, Inc., and Palm, Inc. (Civil Action Number 97-CV-6182T). Xerox alleged willful infringement of United States Patent Number 5,596,656, entitled "Unistrokes for Computerized Interpretation of Handwriting." Xerox sought damages and to permanently enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. the defendants from infringing the patent in the future. In 2000, the District Court dismissed the case, ruling that the patent is not infringed by the Graffiti handwriting recognition system used with Palm handheld computers. Xerox appealed the dismissal to the United States Court of Appeals for the Federal Circuit The United States Court of Appeals for the Federal Circuit is a United States court of appeals. The Federal Circuit was created by Congress with passage of the Federal Courts Improvement Act of 1982. The court is headquartered in Washington, D.C., and occupies the Howard T. (CAFC CAFC Court of Appeals for the Federal Circuit CAFC Canada Firearms Centre CAFC US Court of Appeals for the Federal Circuit CAFC Charlton Athletic Football Club (UK) CAFC Canadian Association of Fire Chiefs ). On October 5, 2001, the CAFC affirmed-in-part, reversed-in-part and remanded the case to the District Court for further proceedings. On December 20, 2001, the District Court granted Xerox's motion for summary judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers that the patent is valid, enforceable, and infringed. The defendants filed a Notice of Appeal on December 21, 2001. In connection with Palm, Inc.'s (Palm) separation from 3Com, pursuant to the terms of the Indemnification and Insurance Matters Agreement, dated February 26, 2000, between 3Com and Palm, Palm agreed to indemnify and hold 3Com harmless for any damages or losses which might arise out of the Xerox litigation.) |
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