* LogMeIn down sharply on decision, 01 Communique up
* Patent infringement case remanded to lower court
* Both companies make remote servicing software
WASHINGTON, July 31 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
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.