Optical Cable Corporation's Recently Acquired Subsidiary Prevails In Major Patent Infringement Lawsuit
23 Novembre 2009 - 6:29PM
PR Newswire (US)
Jury Finds that Applied Optical Systems' Fiber-Optic Connector
Designs Do Not Infringe on Patent ROANOKE, Va., Nov. 23
/PRNewswire-FirstCall/ -- Optical Cable Corporation (NASDAQ:OCCF)
("OCC") today announced that Applied Optical Systems, Inc. ("AOS"),
a wholly owned subsidiary of OCC, has prevailed in a major patent
infringement lawsuit brought in November 2006, by Amphenol Fiber
Systems International ("FSI"), a subsidiary of Amphenol Corporation
(NYSE:APH). OCC acquired AOS on October 31, 2009, as previously
announced. The jury in the U.S. District Court for the Eastern
District of Texas unanimously determined, that an AOS fiber-optic
connector design does not infringe on FSI's U.S. Patent 6,305,849.
The jury decision follows an earlier U.S. District Court ruling,
which similarly found that two other AOS fiber-optic connector
designs do not infringe on the patent as a matter of law. The
result marks a complete verdict in favor of AOS, the defendant in
the lawsuit. The fiber optic connectors at issue are predominately
used in military and other harsh environment applications, and
include a four-channel second generation tactical fiber optic cable
assembly (or TFOCA) connector design that has been a reliable
standard for the U.S. military and allied militaries for a number
of years. "OCC acquired AOS to enhance the integrated fiber optic
and copper datacom cabling and connectivity solutions we provide in
our targeted markets. The favorable resolution of this lawsuit
advances that strategy, permitting OCC to pair AOS' innovative and
unique fiber optic connectivity products with OCC's field-proven
fiber optic cabling products for military and other harsh
environment applications," stated Neil Wilkin, President and Chief
Executive Officer of Optical Cable Corporation. "We are pleased
with the decision of the jury, which is consistent with the Court's
earlier ruling and validates our long-held position that AOS'
product offerings are well outside the scope of the patent," stated
Tom Hazelton, President and General Manager of Applied Optical
Systems, Inc. The findings in the U.S. District Court clear the way
for AOS to continue to manufacture and distribute its two military
specification compliant four-channel TFOCA-style fiber optic
connectors (TFOCA/16 CCTA10B31 and TFOCA/16 CCAA10B31 which comply
with the U.S. Department of Defense's MIL-PRF-83526/16 and /17
specifications), as well as its EZ-MATE(TM) connectors, which is
designed for other harsh environment applications. Still pending
before the U.S. District Court for the Eastern District of Texas
are AOS' allegations against FSI for improper use of the litigation
and the patent in violation of U.S. anti-trust laws. Munck Carter,
LLP, a Texas-based patent litigation firm, represented AOS in the
patent infringement case in the U.S. District Court for the Eastern
District of Texas, Fiber Systems International Inc. v. Applied
Optical Systems Inc, (2:06-cv-00473). About Applied Optical
Systems, Inc. Applied Optical Systems, Inc. designs, develops and
manufactures a broad range of specialty fiber optic connectors and
connectivity solutions primarily for use in military and other
harsh environment applications. Founded in 2003, Applied Optical
Systems has offices and a MIL-STD-790F certified manufacturing
facility located in Plano, Texas, near Dallas. Applied Optical
Systems is a wholly owned subsidiary of Optical Cable Corporation
(NASDAQ: OCCF). Further information about AOS is available on the
Internet at http://www.appliedopticalsystems.com/. About Optical
Cable Corporation Optical Cable Corporation is a leading
manufacturer of a broad range of fiber optic and copper data
communications cabling and connectivity solutions primarily for the
enterprise market, offering an integrated suite of high quality,
warranted products which operate as a system solution or seamlessly
integrate with other providers' offerings. OCC's product offerings
include designs for uses ranging from commercial, enterprise
network, datacenter, residential and campus installations to
customized products for specialty applications and harsh
environments, including military, industrial, mining and broadcast
applications. OCC products include fiber optic and copper cabling,
fiber optic and copper connectors, specialty fiber optic and copper
connectors, fiber optic and copper patch cords, racks, cabinets,
datacom enclosures, patch panels, face plates, multi-media boxes,
and other cable and connectivity management accessories, and are
designed to meet the most demanding needs of end-users, delivering
a high degree of reliability and outstanding performance
characteristics. OCC is internationally recognized for pioneering
the design and production of fiber optic cables for the most
demanding military field applications, as well as of fiber optic
cables suitable for both indoor and outdoor use, and creating a
broad product offering built on the evolution of these fundamental
technologies. OCC also is internationally recognized for its role
in establishing copper connectivity data communications standards,
through its innovative and patented technologies. Founded in 1983,
OCC is headquartered in Roanoke, Virginia with offices and
manufacturing and warehouse facilities located both in Roanoke,
Virginia and near Asheville, North Carolina. OCC primarily
manufactures its high quality fiber optic cables at its ISO
9001:2008 registered and MIL-STD-790F certified facility located in
Roanoke, Virginia and its high quality commercial connectivity
products at its ISO 9001:2000 registered facility located near
Asheville, North Carolina. Further information about OCC is
available on the Internet at http://www.occfiber.com/. Optical
Cable Corporation, OCC, Superior Modular Products, SMP Data
Communications, Applied Optical Systems, and all associated logos
are trademarks of Optical Cable Corporation. FORWARD-LOOKING
INFORMATION This news release by Optical Cable Corporation and its
subsidiaries (collectively, the "Company" or "OCC") may contain
certain forward-looking information within the meaning of the
federal securities laws. The forward-looking information may
include, among other information, (i) statements concerning the
Company's outlook for the future, (ii) statements of belief,
anticipation or expectation, (iii) future plans, strategies or
anticipated events, and (iv) similar information and statements
concerning matters that are not historical facts. Such
forwardlooking information is subject to variables, uncertainties,
contingencies and risks that may cause actual events to differ
materially from the Company's expectations. Additionally, such
variables, uncertainties, contingencies and risks may adversely
affect the Company and the Company's future results of operation
and future financial condition. Factors that could cause or
contribute to such differences from the Company's expectations or
could adversely affect the Company, include, but are not limited
to: the level of sales to key customers, including distributors;
timing of certain projects and purchases by key customers; the
economic conditions affecting network service providers; corporate
and/or government spending on information technology; actions by
competitors; fluctuations in the price of raw materials (including
optical fiber, copper, gold and other precious metals, and plastics
and other materials affected by petroleum product pricing);
fluctuations in transportation costs; the Company's dependence on
customized equipment for the manufacture of its products and a
limited number of production facilities; the Company's ability to
protect its proprietary manufacturing technology; the Company's
ability to replace royalty income as existing patented and licensed
products expire by developing and licensing new products; market
conditions influencing prices or pricing; the Company's dependence
on a limited number of suppliers; the loss of or conflict with one
or more key suppliers or customers; an adverse outcome in
litigation, claims and other actions, and potential litigation,
claims and other actions against the Company; an adverse outcome in
regulatory reviews and audits and potential regulatory reviews and
audits; adverse changes in state tax laws and/or positions taken by
state taxing authorities affecting the Company; technological
changes and introductions of new competing products; changes in
end-user preferences for competing technologies, relative to the
Company's product offering; economic conditions that affect the
telecommunications sector, certain technology sectors or the
economy as a whole; changes in demand of our products from certain
competitors for which we provide private label connectivity
products; terrorist attacks or acts of war, and any current or
potential future military conflicts; changes in the level of
military spending by the United States government; ability to
retain key personnel; inability to recruit needed personnel; poor
labor relations; the inability to successfully integrate the
operations of the Company's new subsidiaries; the impact of changes
in accounting policies, including those by the Securities and
Exchange Commission and the Public Company Accounting Oversight
Board; the Company's ability to continue to successfully comply
with, and the cost of compliance with, the provisions of Section
404 of the Sarbanes-Oxley Act of 2002 or any revisions to that act
which apply to the Company; the impact of changes and potential
changes in federal laws and regulations adversely affecting our
business and/or which result in increases in our direct and
indirect costs as we comply with such laws and regulations; impact
of future consolidation among competitors and/or among customers
adversely affecting the Company's position with its customers
and/or its market position; actions by customers adversely
affecting the Company in reaction to the expansion of its product
offering in any manner, including, but not limited to, by offering
products that compete with its customers, and/or by entering into
alliances with, making investments in or with, and/or acquiring
parties that compete with and/or have conflicts with customers of
the Company; impact of weather or natural disasters in the areas of
the world in which the Company operates and markets its products;
economic downturns and/or changes in market demand, exchange rates,
productivity, or market and economic conditions in the areas of the
world in which the Company operates and markets its products, and
the Company's success in managing the risks involved in the
foregoing. The Company cautions readers that the foregoing list of
important factors is not exclusive and the Company incorporates by
reference those factors included in current reports on Form 8K, in
the annual report on Form 10K for the fiscal year ended October 31,
2008, and/or in the Company's other filings. AT THE COMPANY:
--------------- Neil Wilkin Tracy Smith President & CEO Senior
Vice President & CFO (540) 265-0690 (540) 265-0690 Tom Hazelton
General Manager, Applied Optical Systems (540) 265-0690 AT JOELE
FRANK, WILKINSON BRIMMER KATCHER:
------------------------------------------ Andrew Siegel Aaron
Palash (212) 355-4449 ext. 127 (212) 355-4449 ext. 103 DATASOURCE:
Optical Cable Corporation CONTACT: Neil Wilkin, President &
CEO, ; or Tracy Smith, Senior Vice President & CFO, ; or Tom
Hazelton, General Manager, Applied Optical Systems, , all of
Optical Cable Corporation, +1-540-265-0690; or Andrew Siegel,
+1-212-355-4449 ext. 127, ; or Aaron Palash, +1-212-355-4449 ext.
103, , both of Joele Frank, Wilkinson Brimmer Katcher Web Site:
http://www.occfiber.com/
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