Greenshift Corporation (GERS)

[Slashnuts]

The Sobering Reality of Patent Infringement/Empty Promises

ICM is bleeding cash. Their business is down and they're laying off workers left and right. It's the perfect storm that may leave ethanol producers holding the bag, stuck, and on the hook for infringing GERS' portfolio of patents.

As an example, infringer Cardinal Ethanol is growing concerned about ICM's Promise.

Here's a quarterly report from Cardinal Ethanol, a defendent in the patent infringement litigation. Not only are they extracting 70% less oil (.56 pounds) than GERS' highest known customer, (.95 pounds), they sound very concerned about ICM's "promise". Cardinal goes on to describe a sobering reality of how the court's may force them to shut down their oil extraction system and that Cardinal may be liable to GERS if ICM defaults on it's "promise".

"8. COMMITMENTS AND CONTINGENCIES


Contingencies


In February 2010, a lawsuit against the Company was filed by another unrelated party claiming the Company's operation of the oil separation system in a patent infringement. In connection with the lawsuit, in February 2010, the agreement for the construction and installation of the tricanter oil separation system was amended. In this amendment the manufacturer and installer of the tricanter oil separation system indemnifies the Company against all claims of infringement of patents, copyrights or other intellectual property rights from the Company's purchase and use of the tricanter oil system and agrees to defend the Company in the lawsuit filed at no expense to the Company. The Company is not currently able to predict the outcome of this litigation with any degree of certainty. The manufacturer has, and the Company expects it will continue, to vigorously defend itself and the Company in these lawsuits. The Company estimates that damages sought in this litigation if awarded would be based on a reasonable royalty to, or lost profits of, the plaintiff. If the court deems the case exceptional, attorney's fees may be awarded and are likely to be $1,000,000 or more. The manufacturer has also agreed to indemnify the Company for these fees. However, in the event that damages are awarded, if the manufacturer is unable to fully indemnify the Company for any reason, the Company could be liable. In addition, the Company may need to cease use of its current oil separation process and seek out a replacement or cease oil production altogether."

http://www.sec.gov/Archives/edgar/data/1352081/000135208112000031/cardinal10-qfqe6x30x12.htm

Good Luck To All!$!$!$!$!$!