Zerify Inc (ZRFY)

[ZPaul]

$SFOR Read again the 8K for MSFT settlement carefully-License Agreement

TWO SEPARATE LAWSUITS

ITEM 8.01. OTHER EVENTS
SFOR sued Phonefactor and then $MSFT separately. (Two lawsuits instead of one). We have never discussed this before but just an FYI, there were TWO LAWSUITS, instead of ONE against $MSFT.

How many of knew that SFOR had two lawsuits against $MSFT? I bet no one. So we missed lot of key information. Windows 10, Azure all MSFT products are injected with SFOR patents/Products/much more.

https://azure.microsoft.com/en-us/services/multi-factor-authentication/
http://www.pcworld.com/article/2837612/windows-10-to-get-twofactor-authentication-builtin.html

For Phonefactor - $9.7m IMO & for $MSFT - Licensing deals.

Settlement with $MSFT is much bigger than we are thinking as deals are kept CONFIDENTIAL i.e.

The terms and conditions of the Release and License Agreement are confidential except under limited conditions.

https://www.sec.gov/Archives/edgar/data/1285543/000147793216008173/sfor_8k.htm

On March 28, 2013, the Company initiated patent litigation against PhoneFactor, Inc., a subsidiary of Microsoft Corporation, for alleged infringement of United States Patent No. 7,870,599 (the "'599 Patent").

The Company filed a separate action against Microsoft Corporation based on its alleged infringement of the '599 Patent and two additional patents for out-of-band user authentication (U.S. Patent Nos.: 8,484,698 & 8,713,701).

Both actions were filed in the U.S. District Court for the District of Delaware.

On January 15, 2016, the litigation was settled and the parties executed a settlement agreement in the form of a Release and License Agreement. The terms and conditions of the Release and License Agreement are confidential except under limited conditions.

As a consequence of the Release and License Agreement, the parties have moved to dismiss the action with prejudice, the Company has licensed the patents to Microsoft Corporation, and the Company will receive a non-disclosable one-time lump sum payment.

"$9.7m is a part of the settlement"