Hot off the docket.......
3. Debtor and Phostech Lithium Inc. (“Phostech”) are parties to a court proceeding
in Case No. T-219-07, styled “Valence Technology, Inc. v. Phostech Lithium Inc.,” in the
Federal Court of Canada (the “Case”).
4. On January 31, 2007, Debtor filed a claim against Phostech in the Federal Court of Canada alleging infringement of Debtor’s Canadian Patent 2,395,115. On April 2, 2007,
Debtor filed an amended claim alleging additional infringement of Debtor’s Canadian Patents
2,483,918 and 2,466,366. On February 22, 2007, Phostech responded. After extensive
discovery, the trial began on September 1, 2010 and ended on October 1, 2010.
5. On February 17, 2011, the Canadian Court ruled in the Debtor’s favor. On March
11, 2011, Phostech filed a Notice of Appeal in Court Number A-121-11. On August 17, 2011,
the Federal Court of Appeal of Canada upheld the February 17, 2011 judgment, allowing the
matter to proceed to trial on the damages phase of the litigation.
6. Court-assisted mediation was held May 14, 2013, and Debtor and Phostech have
reached a settlement on the disputed amount of damages, subject to this Court’s approval. This
agreement was reflected in a Settlement Agreement (“Settlement Agreement”) executed by the
parties, a copy of which is attached as Exhibit “A” and incorporated herein. Briefly, the
Settlement Agreement provides for payment of $1,000,000 (Canadian dollars) (the “Funds”) to
be held in trust for the Debtor pending Court approval and certain other terms, as set forth in the
Settlement Agreement. The Funds are allocated as $969,106.65 in damages and $30,893.35 in
costs.
Debtor Valence is seeking to have the court approve the Settlement Agreement. I don't believe I've ever come across this Phostech case in my dd. An extra million is great, but I'm a little more excited about some of the patents having been tested successfully in court - that's huge.
AI
