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Court to Issue Injunction Against Emptoris in Ariba Patent Infringement Case


Published on 2008-12-17 14:00:45 - Market Wire
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SUNNYVALE, Calif.--([ BUSINESS WIRE ])--Ariba, Inc. (Nasdaq:ARBA), the leading spend management solutions provider, today announced that during a hearing yesterday in the U.S. District Court for the Eastern District of Texas, Judge Ron Clark announced that he will issue an injunction against Emptoris, Inc. The injunction will prohibit Emptoris from continuing to infringe the two patents (U.S. Nos. 6,499,018 and 6,216,114) (the ‘018 and ‘114 patents) that were the subject of their trial in October. The judge's written order defining the scope of the injunction is expected to be issued soon. The court also increased the damage award that had been assessed by the jury by an additional $1.4 million to a total of $6.4 million and ruled that Emptoris must pay Ariba pre-judgment interest on the jury's pre-enhancement damage award. The Court also ordered Emptoris to pay Ariba's costs incurred during the suit, which have not yet been calculated.

During the hearing, the court rejected all of Emptoris' motions to overturn the jury verdict, including Emptoris' request to reject the jury's finding of infringement on the ‘018 patent, as well as Emptoris' renewed request to find both the '018 patent and the ‘114 patent invalid. These patents cover, respectively, the use of individual bid ceilings and certain auction overtime rules in electronic auctions. Such functions are in demand and are important to the design and execution of successful online markets. The court also upheld the jury's finding that Emptoris willfully infringed the ‘114 patent.

"We are pleased that the trial judge has confirmed the jury's verdict as correct, rejected Emptoris' attempts to overturn their findings and found that an injunction in this case is important and warranted," said David Middler, Senior Vice President and General Counsel, Ariba. "This ruling and the judge's statements are further testament to the strength of Ariba's intellectual property and our ability to deliver innovations in electronic auctions and sourcing that no other vendor can provide. Ariba will continue to offer the functionality covered by these two patents as part of its sourcing solutions."

Emptoris has stated that it has issued a patch to work around the Ariba patents. However, whether this patch is sufficient to comply with the injunction that will be issued has not yet been tested or confirmed. "We expect that the court's injunction will make it plain that these infringing functions must be completely removed by Emptoris and cannot be included in any future offerings," Middler said. Emptoris may appeal the court's judgment and seek to stay the expected injunction and payment of damages pending such appeal.

About Ariba, Inc.

Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering software, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 500, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit [ www.ariba.com ].

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Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba's results of operations and financial condition; delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies, long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-K filed with the SEC on November 19, 2008.