LecTec Corporation Announces Orders Provided by United States District Court
Sep. 29, 2010 (Business Wire) -- LecTec Corporation (OTCBB: LECT) announced today that the United States District Court for the Eastern District of Texas issued an Order on September 28, 2010, in regard to the patent infringement litigation entitled LecTec Corporation v Chattem, Inc. et al. Defendants Prince of Peace Enterprises, Inc., and Chattem, Inc. had requested permission to file motions for summary judgment: (1) of invalidity due to the on-sale bar of 35 U.S.C. § 102(b); and (2) regarding Defendants’ defenses of equitable estoppels and laches. Lectec had requested permission to file motions for summary judgment: (1) on, and to preclude testimony related to, Defendants’ 35 U.S.C. § 102(b) defense based on the Aqua-Patch; and (2) on infringement by Defendants.
The Order granted Defendants’ the right to file a summary judgment motion regarding on-sale bar, but denied them the opportunity regarding the equitable defenses of estoppel and laches. With regard to the equitable issues, the Court stated that the custom in patent cases is to hold a separate bench proceeding after the jury trial on such issues. The Order granted LecTec the right to file summary judgment motions on infringement and to preclude Defendants Aqua-Patch defense. LecTec will oppose Defendants’ expected Motion.
Greg Freitag, LecTec’s CEO stated: “This completes another round of actions in our litigation as the Court has expressed a willingness to consider and evaluate each parties’ position on summary judgment before trial. We are preparing our motions which are due by November 4, 2010 and will oppose Defendants’ Motion. We continue to be confident in our arguments against Defendants’ claims and our ability to prevail in these matters.”
About LecTec
LecTec is an intellectual property (“IP”) licensing and holding company with approximately $9.6M in cash at June 30, 2010. LecTec holds multiple domestic and international patents based on its original hydrogel patch technology and has also filed for a provisional patent for its hand sanitizer patch. The LecTec hydrogel patch technology allows for a number of potential applications, including its previously marketed TheraPatch® products, while its anti-microbial hand sanitizer patch is intended to be dry, thereby rendering the patch harmless in the event that it is licked, chewed, or exposed to the eye. An initial prototype of the hand sanitizer patch has been developed and LecTec intends to engage a strategic partner to complete its hand sanitizer patch development and bring it to market. LecTec also has a licensing agreement (“Novartis Agreement”) with Novartis Consumer Health, Inc., which pays royalties to LecTec from time to time, within the terms of the Novartis Agreement, based upon a percentage of Novartis’ net sales of licensed products. LecTec takes legal action as necessary to protect its IP and is currently involved in two patent infringement actions. Finally, LecTec is pursuing a merger/acquisition strategy with the intent to leverage its cash asset and improve shareholder value and liquidity. The Company’s website is www.lectec.com.
Cautionary Statements
This press release contains forward–looking statements concerning possible or anticipated future results of operations or business developments which are typically preceded by the words “believes,” “wants,” “expects,” “anticipates,” “intends,” “will,” “may,” “should,” or similar expressions. Such forward looking statements are subject to risks and uncertainties, which could cause results or developments to differ materially from those, indicated in the forward–looking statements. Such risks and uncertainties include, but are not limited to, the Company’s dependence on royalty payments from Novartis Consumer Health, Inc., which is selling an adult vapor patch licensed by the Company, the Company’s dependence on key personnel and Board of Director members, the Company’s pending patent infringement litigation against Chattem, Inc. and Prince of Peace Enterprises, Inc., the issuance of new accounting pronouncements, information disseminated on internet message boards from posters expressing opinions that may or may not be factual, the availability of opportunities for license, sale or strategic partner agreements related to patents that the Company holds, limitations on market expansion opportunities, and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, and particularly as described in the “Risk Factors” included in our Form 10–K for the year ended December 31, 2009.
LecTec Corporation
Greg Freitag, CEO/CFO
903-832-0993
Source: Business Wire (September 29, 2010 - 7:01 PM EDT)
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