Spherix Initiates Lawsuit Under Cordless Handset Patents Against VTech Communications in the Northern District of Texas

Posted: September 3, 2013 in Uncategorized

Spherix Incorporated (NASDAQ: SPEX) (“Spherix” or the “Company”) — an intellectual property development company — announced today that it has filed suit against VTech Communications, Inc. (“VTech”), for patent infringement in the Northern District of Texas. The patents at issue in the litigation were recently acquired from Rockstar Consortium US LP, the successor to many important Nortel Networks (“Nortel”) patent assets and technology.

The patents included in the suit cover many cordless telephones, including patents dating to 1993. VTech claims to be the world’s largest cordless telephone producer, including the production of phones for AT&T. VTech is reported to have over $2.6 billion of revenues during the claimed infringement period. VTech cordless phones are sold at Wal-Mart, Best Buy, Circuit City, Costco, Office Depot, Staples, Target and other locations.

The patents at issue were invented by former Nortel employees working in the U.S. and Canada. VTech claims an 80% US market share and has moved virtually all of its manufacturing to China.

“This lawsuit represents the continuing evolution of Spherix as a technology company focused on protecting intellectual property rights.” said Harvey Kesner, Interim Chief Executive Officer of Spherix. “As referenced in the complaint, VTech’s overall revenue for North America has risen 20% since Nortel’s bankruptcy filing in 2009. According to our engineers and the prior Nortel engineers that we relied on to review the products, many of VTech’s own patents cite our technology yet VTech has failed to recognize the important patents on which its core products rely by seeking a license. Instead, VTech has elected to disregard these patents entirely. We intend to seek recompense for the significant investment made by Nortel in developing these important inventions and intend to try these cases to conclusion.”

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