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TeleCommunication Systems, Inc.: U.S. District Court Grants Request by TeleCommunication Systems in Short Code Patent Litigatio

^{Published on 2009-06-29 10:58:02, Last Modified on 2009-06-29 10:58:58 - Market Wire}
 

ANNAPOLIS, MD--(Marketwire - June 29, 2009) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: [ TSYS ]), a leading provider of wireless communications technology today announced that the United States District Court for the Northern District of California issued an Order on June 23, 2009 in Newegg, Inc. v. TeleCommunication Systems, Inc. (Case No. C 09-0982 JL). The litigation involves TCS's United States Patent Numbers 6,891,811 ("Short Messaging Service Center Mobile-Originated to HTTP Internet Communications") and 7,355,990 ("Mobile-Originated to HTTP Internet Communications"). In the Order, the Court granted TCS's motion to transfer the case to the District of Maryland.

Instead of responding directly to TCS's licensing offers, Newegg filed the litigation on March 6, 2009 seeking a declaratory judgment of noninfringement and invalidity of the Mobile-Originated (MO) to HTTP patents. TCS counterclaimed for infringement, seeking damages and an injunction. At the same time, TCS filed a motion seeking transfer to the District of Maryland for the convenience of the witnesses and the parties, and in the interest of justice. On June 23, 2009, the court granted TCS's motion, sending the case to Maryland. After noting that the "case involves technological issues involving what are known as 'short codes,'" the court rejected Newegg's attempts to create litigation in a forum (San Francisco, California) having no pertinent TCS or third party witnesses, and involving no operative facts.

The MO to HTTP patents enable a wireless user to send a short message to an external application using Internet Protocols (IP) such as HTTP and to receive a return message back. A current application of this technology is in the use of Common Short Codes (CSCs) in text-message based mobile marketing, advertising, entertainment, and commerce.

"We are gratified the Court respected our motion to place the venue close to the parties who will need to interact with the courts to resolve this case," said Drew Morin, Chief Technology Officer of TCS. "We are dedicated to finding ways to encourage companies to take advantage of our patented technologies, but we will protect our proprietary rights in appropriate venues and in appropriate cases."

TCS is represented in the litigation by Flachsbart & Greenspoon, LLC and Dergosits and Noah, LLP.

About TeleCommunication Systems, Inc.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: [ TSYS ]) engineers and delivers highly reliable wireless communications technology. TCS is a leader in wireless text messaging and location-based technology, including E9-1-1 services and commercial applications like navigation that use the precise location of a wireless device, and secure satellite-based communications systems and services. Customers include leading wireless and VoIP carriers around the world, cable MSOs, automotive telematics vendors, and agencies of the U.S. Departments of Defense, State, and Homeland Security. TCS is one of six primary vendors on a $5 billion Army Worldwide Satellite Systems Contract vehicle. For more information, visit [ www.telecomsys.com ].

Except for the historical information contained herein, this news release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties and are based upon TCS's current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include without limitation those detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2008, and the quarter ended March 31, 2009.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.