12.23.2009
Niro Firm's Client, TeleCommunication Systems, Inc., Reaches Favorable Settlement with Sybase
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), and Sybase, Inc. (Sybase) (NYSE: SY) announced on December 23, 2009 that they had agreed to settle two patent infringement lawsuits. Both lawsuits were filed by the Chicago intellectual property law firm Niro, Scavone, Haller & Niro in the United States District Court for the Eastern District of Virginia, Richmond Division on behalf of TCS. The first lawsuit was brought in July 2006 against Mobile 365, Inc. alleging infringement of TCS's United States Patent No. 6,985,748, entitled "Inter-Carrier Messaging Service Providing Phone Number Only Experience." Sybase subsequent acquired Mobile 365 during the lawsuit and renamed it Sybase 365, Inc. The later filed suit was brought in July 2009 against Sybase 365, Inc. alleging infringement of TCS's United States Patent No. 7,430,425, entitled "Inter-Carrier Digital Message with User Data Payload Service Providing Phone Number Only Experience" and related to the '748 patent.
In the first lawsuit, the jury found that Sybase 365 (formerly known as Mobile 365) infringed TCS's '748 patent and awarded $12.1 million in damages, which represents a 12% royalty. The jury also found Sybase 365's infringement willful and upheld the validity of the patent.
Raymond P. Niro, TCS's lead trial counsel, said that the '748 patent relates to the transmission of text messages between cell phones by using a telephone number only. "Today we take for granted that text messages can be sent in the United States by using only a telephone number. Before the inventor of the patent, Chris Knotts, conceived of this idea, that couldn't be accomplished. This truly is a pioneering patent that made possible cell phone messaging as we know it in the United States," said Niro. Niro also added, "before the invention, there were 12 million text messages sent per month in the United States in 2000. By 2006, that number had grown to 20 billion messages per month. Now, that number exceeds 130 billion messages per month.
As part of the settlement, Sybase will make a one-time payment of $23 million to TCS in exchange for a license under TCS's inter-carrier messaging patents, including the '748 and '425 patents. Other terms of the settlement are confidential.
TCS was represented at trial in the first case by Raymond P. Niro, Christopher J. Lee and John C. Janka, all of the Niro firm. Paul K. Vickrey, Dean Niro, Richard Megley and David Mahalek, also of the Niro firm, also represented TCS in the cases.
Headquartered in Annapolis, Maryland, TCS is a leading provider of mission-critical wireless data solutions to carriers, enterprise and government customers.
Niro, Scavone, Haller & Niro concentrates its practice in the trial of intellectual property matters, including patent, trademark and copyright infringement, trade secret misappropriation, unfair competition and related business torts.
The cases are TeleCommunication Systems, Inc. v. Mobile 365, Inc., 3:06-CV-485 (E.D.Va. 2006) and TeleCommunication Systems, Inc. v. Sybase 365, Inc. f/k/a Mobile 365, Inc., 3:09-CV-487 (E.D. Va. 2009).
