Pason Systems Inc. - Judgment Issued in US Auto-Driller Lawsuit
June 18 2012 - 3:34AM
PR Newswire (Canada)
CALGARY, June 19, 2012 /CNW/ - Pason Systems Inc. ("Pason" or "the
Company") announced today that a judgment has been issued in the US
patent infringement lawsuit regarding the Company's automatic
driller, which has been ongoing since 2003. The Company's
inequitable conduct claims were dismissed and a prior jury award
entered in 2008 was upheld. The plaintiff was awarded
post-verdict damages resulting in a total award of US$19.4 million.
The plaintiff`s claim for treble damages and injunctive relief was
denied. Following the jury verdict in 2008, the Company
accrued US$14.3 million and will increase this accrual by US$ 5.1
million to reflect the updated amount. This amount will be recorded
in the Company's second quarter results. Pason contends that the
automatic driller does not to infringe the patent at issue and
intends to renew its appeal of the judgment shortly.
The Company's automatic driller no longer utilizes the same
technology as its predecessor that was under scrutiny in this
case. The results of this decision will have no impact on the
Company`s operations. Pason Systems
Inc.
Pason Systems Inc. is a leading provider of instrumentation systems
to land-based and offshore drilling rigs worldwide. The company's
rental solutions, which include data acquisition, wellsite
reporting, remote communications, and web-based information
management, maximize rig uptime, improve work efficiency, and
minimize operating costs. Pason's common shares trade on the
Toronto Stock Exchange under the symbol PSI. Certain information
regarding the Company contained herein may constitute
forward-looking information under applicable securities law.
The words "anticipate", "expect", "believe", "may", "should",
"will", "estimate", "project", "outlook", "forecast" or other
similar words are used to identify such forward-looking information
and statements. Forward-looking statements in this document
may include statements, express or implied, regarding the Company`s
outlook as to the results of any appeals or post-judgment motions,
and the result of this lawsuit on the Company`s operations.
These forward-looking statements are based upon various underlying
factors and assumptions, including those with regards to the
current state of the law surrounding patents, the state of the
economy and the oil and gas exploration and production business, in
particular; the Company's business prospects and opportunities; and
estimates of the financial and operational performance of Pason.
Forward-looking information and statements are subject to known or
unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the
forward-looking information and statements. Risk factors that
could cause actual results or events to differ materially from
current expectations include, among others, changes to the relevant
patent case and statutory laws, the ability of Pason to
successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the
operating performance of Pason's assets and businesses, the price
of energy commodities, competitive factors in the energy industry,
changes in laws and regulations affecting Pason's businesses,
technological developments, and general economic conditions.
Readers are cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such forward looking statements, although considered
reasonable by management as of the date hereof, may prove to be
incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this
press release are expressly qualified by this cautionary statement.
Additional information on risks and uncertainties and other factors
that could affect Pason's operations or financial results are
included in Pason's reports on file with the Canadian securities
regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com or through Pason's website
www.pason.com). Furthermore, the forward looking statements
contained in this news release are made as of the date of this news
release, and Pason does not undertake any obligation to update
publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by securities law. Pason
Systems Inc. CONTACT: For more information about Pason Systems
Inc., visit thecompany'swebsite at www.pason.com or contact:Marcel
Kessler President and CEO403-301-3400marcel.kessler@pason.comDavid
ElliottChief Financial Officer403-301-3441david.elliott@pason.com
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