September 9, 2010 / 12:07 PM / 8 years ago

UPDATE 3-01 Communique files patent suit against Dell, shares up

* LogMeIn also sued

* Seeks past and future damages

* Had won favorable ruling on same patent against Citrix

* Posts wider Q3 loss

* Shares up as much as 17 pct (Adds Q3 results, CEO comment, updates share movement)

Sept 9 (Reuters) - Canadian software maker 01 Communique Laboratory Inc ONE.TO on Thursday filed a lawsuit against Dell Inc DELL.O and LogMeIn Inc (LOGM.O) alleging infringement of a patent on which it won a ruling against Citrix Systems (CTXS.O) in July.

Shares of 01 Communique rose as much as 17 percent on Thursday but pared some of their gains to close up 2 Canadian cents at C$1.64 on the Toronto Stock Exchange.

The company’s shares have risen more than seven fold since the favorable ruling in the Citrix case.

01 Communique has identified a number of companies which have products that are making use of its patent, Chief Executive Andrew Cheung said in a statement.

“We will proceed accordingly as we endeavor to protect our intellectual property and build revenue,” he said without identifying the infringing companies.

Later on Thursday, the company also reported a wider third-quarter loss hurt by lower contract engineering fees.

In the May-July quarter, loss widened to C$348,047, from C$250,983 a year ago. Revenue for the quarter fell 30 percent to C$84,307.


The patent in question, which is used in 01 Communique’s “I’m In Touch” product, relates to a remote access software technology which allows computers and other devices to connect securely over the Internet.

As per the lawsuit filed in the United States District Court, Eastern District of Virginia, 01 Communique is seeking past and future damages, as well as a trebling of damages for willful infringement and injunctive relief from Dell and LogMeIn.

The Mississauga, Ontario-based company alleged that its software was used in remote access products like LogMeIn Free, LogMeIn Pro(2) and LogMeIn Ignition for LogMe In, and Dell Remote Access for Dell.

In July, the U.S. Patent and Trademark Office ruled 01 Communique’s patent was infringed upon by Citrix’s GoToMyPC, and GoToMeeting products. Citrix has filed its notice to appeal against that decision. [ID:nSGE6680HP] (Reporting by Arnika Thakur and Isheeta Sanghi in Bangalore; Editing by Vyas Mohan, Roshni Menon)

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