UPDATE 1-U.S. appeals court revives patent claim against LogMeIn

Tue Jul 31, 2012 12:59pm EDT

* LogMeIn down sharply on decision, 01 Communique up

* Patent infringement case remanded to lower court

* Both companies make remote servicing software

WASHINGTON, July 31 (Reuters) - A U.S. appeals court on Tuesday revived patent infringement claims brought by 01 Communique Laboratory Inc against LogMeIn Inc, sending LogMeIn shares down 16 percent.

The U.S. Court of Appeals for the Federal Circuit overturned a lower court decision that LogMeIn did not infringe 01 Communique's patented technology.

01 Communique had accused LogMeIn of infringing patents for software used to allow one computer to access another remotely via the Internet. 01 Communique also provides remote access software.

LogMeIn shares were down $3.91 to $20.48 in afternoon trading. 01 Communique was up 35 Canadian cents to C$1.20.

The software in question is used to connect two computers and create communications sessions between them. The software allows technicians in one city to address problems in computers in another city, among other services.

The case will now return to the District Court for the Eastern District of Virginia.

"Despite the Court of Appeal's decision to reverse the lower court's summary judgment ruling, LogMeIn continues to believe that it has strong defenses to the claims made by 01 Communique and intends to vigorously defend against these claims," LogMeIn said in press release.

01 Communique CFO Brian Stringer, contacted by phone, said, "We feel pretty strong on the case. We're very comfortable on the merits of the case." He said the company had spent $25 million to $30 million developing the software.