TORONTO, June 18, 2018 (GLOBE NEWSWIRE) -- 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 Busseri CEO, Route1 Inc. +1 416 814-2635 tony.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.
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