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Route1 Files Complaint in Canada against VMware, Inc. and AirWatch LLC for Patent Infringement

Route1 Inc. announced that the Company filed a complaint, Court File No. T-2149-18, against VMware, Inc. and its wholly owned subsidiary AirWatch LLC in the Federal Court of Canada for infringement of Route1's Canadian Patent No. 2,578,053, seeking financial compensation for infringement, legal fees, and an injunction. The compensation the Company will be seeking are material when compared to Route1's market capitalization.

Patent Litigation

A patent lawsuit in Canada typically takes at least three years to resolve. Route1 anticipates that its current cash resources and future cash generated from operating performance will be sufficient to fund Route1's estimated cash costs of the litigation through trial. Compensation for infringing activity may be awarded from six years prior to the filing of the lawsuit, and may be calculated on the basis of a royalty on infringing revenues, or profits wrongfully gained from infringing revenues.

VMWare/AirWatch LLC

VMware, by itself and through its wholly owned subsidiary AirWatch, is a provider of Enterprise Mobility Management (EMM) software and standalone management systems for content, applications and email.  AirWatch's EMM solutions emphasize secure communications with its employees' mobile devices and enterprise resources.  AirWatch is a wholly-owned subsidiary company of VMware, Inc., whose majority shareholder is EMC Dell.  It is likely that AirWatch benefits from access to VMware's large client base and extensive distribution channels.

Canadian Patent No. 2,578,053

Route1's Canadian Patent No. 2,578,053 (the "053 Patent"), "System And Method For Accessing Host Computer Via Remote Computer", was issued by the Canadian Intellectual Property Office on March 20, 2012, and will expire on September 6, 2025.  Canadian Patent No. 2,578,053 is generally directed to using a controller to enable secure communication between a remote device, such as a smartphone or a portable computer, and a host computer. 

Route1 is the owner of the entire right, title and interest in the 053 Patent, including the sole and undivided right to sue for infringement.

Route1's Infringement Complaint against AirWatch

In the Company's Statement of Claim, Route1 contends that AirWatch, VMware, and its subsidiary VMware Canada Inc. infringe on Canadian Patent No. 2,578,053 through their sales and provision of services relating to the AirWatch EMM System, which is both offered individually and as a part of VMware's digital workspace platform, VMware Workspace ONE.

Published Friday, December 21, 2018 7:03 PM by David Marshall
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