Contact: Anthony P. de Bruyn, (512) 499-4363

Date: August 10, 2006

UT System News Release

Federal Appeals Court Rules in Favor of UT Regents' Patent Case

Earlier today the Federal Circuit Court of Appeals in Washington, D.C. released an opinion in favor of The Board of Regents of The University of Texas System.

The case — Tegic Communications Corporation v. The Board of Regents of The University of Texas System was an appeal by Tegic of The Board of Regents' successful efforts to dismiss a declaratory judgment suit brought by Tegic against The Board of Regents seeking to invalidate United States Patent 4,674,112 (the '112 patent).

The '112 patent is being enforced by The Board of Regents' in three separate lawsuits against approximately two dozen cellular telephone manufacturers in Austin Federal District Court. Tegic had attempted to claim in its case filed in Seattle, Washington that because its products were part of the accused devices and Tegic may be liable to indemnify the Defendants in the Austin litigation that Tegic could file a separate suit in a separate court. The district court in Seattle and the Federal Circuit both found Tegic's arguments at odds with the Eleventh Amendment's grant of immunity to states from suits in federal court and rejected them.

Barry Burgdorf, Vice Chancellor and General Counsel of The University of Texas System states, "The Board of Regents of The University of Texas System is very pleased with the Court's unanimous opinion that the Eleventh Amendment provides The Board of Regents with immunity from declaratory judgment actions unless those actions are filed as compulsory counterclaims in a patent infringement suit filed by The Board of Regents. Besides its important effect on the present case, this decision protects public university systems from aggressive declaratory judgment litigation by infringing entities during licensing negotiations."

According to Michael W. Shore, The Board of Regents' attorney who argued the case before the Federal Circuit, "The outcome was expected and is in line with well-established precedent from both the Federal Circuit and The United States Supreme Court."

UT Regents Receive Fifth Settlement in Patent Suit (2/13/06)

UT Regents Receive Additional Settlement in Patent Suit (10/12/05)

UT Regents Receive Settlement in Patent Suit (8/1/05)