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GLT Technovations Files Additional Lawsuit Against Fownes Brothers & Co. and Company's President, Thomas Gluckman for Trade Defamation.

GLT's TouchTec[R] Business and Reputation Impacted by False and Defamatory Statements

SAN JOSE, Calif. -- GLT Technovations, LLC (GLT) announced today it has filed defamation counterclaims against Fownes Brothers & Co., Inc. (Fownes) and Thomas Gluckman, President of Fownes Brothers, in its ongoing litigation with Fownes. The defamation claims were filed on June 13, 2012, as part of a pending action in the United States District Court in Manhattan, which involves GLT's claims that Fownes misappropriated GLT's confidential information and violated a non-disclosure agreement regarding its TouchTec technology. In February of this year, GLT filed suit against Fownes, formerly a customer and still under a written Non-Disclosure Agreement with GLT, in connection with Fownes' subsequent efforts at making, using, selling or offering for sale touchscreen-enabled leather gloves in the US market using an offshore leather supplier, not TouchTec[R] leather. Fownes formerly purchased TouchTec leather from GLT's licensee, Broleco Worldwide, Inc., which produces TouchTec leather in the United States.

The defamation claims arise from false and defamatory statements disseminated by Gluckman in a letter to major US retailers and distributors after a hearing in February. The claims by Fownes alleged that GLT had disseminated false and misleading information regarding its intellectual property rights. At that hearing, the Court recognized that GLT had taken the necessary step to clear up any confusion in the market. Furthermore, it expressly held that GLT's statements were in fact, not false and the injunction sought by Fownes against GLT was DENIED as Moot. However, in purportedly summarizing this hearing, Gluckman/Fownes incorrectly stated that the Court found GLT's statements were false (the Court expressly found that they were not), that GLT was unethical (no such finding was made), and that GLT was "guilty" of wrongdoing (no such criminal allegations exist).

The Gluckman/Fownes letter also made inaccurate statements regarding GLT's US patent applications. As matter of public record, at the hearing a sworn declaration by the patent attorney handling GLTs IP was submitted as evidence as to the legitimacy of the pending patent and it was disclosed to Fownes counsel that GLT's pending US patent application was filed under a highly-accelerated examination program, referred to as a "Track 1" filing. The purpose of a Track 1 filing is to have the application process completed (e.g., through issuance of a patent) within 12 months. The Fownes letter fails to mention these facts in its letter, instead citing statistics that US patent applications typically take over two and a half years to issue, and further citing old reports stating all of GLT's claims were rejected by the United States Patent & Trademark Office (USPTO).

Indeed, "based on the velocity in which our Track 1 patent has been moving thus far, and the USPTO's indication of allowable subject matter in early May of this year, we have every reason to believe that GLT's pending patent may obtain issuance in the coming months. However hopeful we are, we do recognize the fact that the patents are still pending at this time and make no claims to the contrary," states Gerald (Jerry) Leto, founder and CTO of GLT. "That being said, when we do have patent rights to assert, it is fairly academic to understand, due to the current situation, we will not hesitate to assert those rights against any organizations we believe infringe such issued patents, both swiftly and aggressively," added Leto.

Fownes filed a motion to dismiss these defamation claims, arguing that their statements were "substantially accurate." GLT, however, believes they plainly are not, and they have improperly harmed GLT's reputation in the market and have caused a significant loss of business. At this time, all of GLT's claims against Fownes are in their early stages and have not yet been resolved.

GLT's pending patent applications are the subject of both US and International patent filings and are currently being handled by the law firm of Baker & McKenzie, a global law firm with 70 offices worldwide. GLT's counsel in the current litigation is Sobel & Feller LLP, a firm that specializes in patent and other intellectual property litigation.

GLT is a pioneer in the development of touchscreen compatible leather and textiles. GLT's TouchTec[R] leather, first introduced in September, 2009, enables even those with prosthetic hands to interface with capacitive touchscreen devices. TouchTec "enabled" gloves allow the wearer to interface with capacitive touchscreen mobile devices such as the Apple iPhone, iPad and Google Android powered mobile devices without need to remove the gloves. Well-known glove brands now offering TouchTec enabled gloves include The Grandoe Corporation and Outdoor Research. Gloves by GLT's partner brands are available at major retailers including Bloomingdales, Neiman Marcus , Nordstrom, and REI, as well as popular online outlets such as Altrec.com, Amazon.com, Hammacher Schlemmer, The MAC STORE, The Sharper Image, SkyMall and Zappos.com. Gloves made with TouchTec can also be purchased from other well-known brands and outlets including Audi USA, Backcountry.com, dogfunk.com, Gaspar Gloves, Harley Davidson, Icon, itouchgloves.com, Johnston & Murphy, Motorcycle SuperStore, Orvis, and Overland.

About GLT Technovations, LLC

GLT Technovations is a Silicon Valley based Innovation and Design Company. These innovations include the TouchTec[R] Mouth Stick, the TouchTec[R] Ball Point Pen and TouchTec[R] Leather. GLT was recently issued a US Patent for its TouchTec[R] Mouth Stick, which enables those who suffer from disabilities such as Quadriplegia, Cerebral Palsy and Amyotrophic Lateral Sclerosis (Lou Gehrig's disease) to interface with capacitive touchscreen devices. To learn more about TouchTec[R], please visit www.touchtec.net.
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Comment:GLT Technovations Files Additional Lawsuit Against Fownes Brothers & Co. and Company's President, Thomas Gluckman for Trade Defamation.
Publication:Business Wire
Geographic Code:1U9CA
Date:Jul 23, 2012
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