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Openwave Takes Legal Action Against Apple and RIM to Protect its Intellectual Property for Mobile Internet Access

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Today : Thursday 1 September 2011
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Openwave Systems Inc. (Nasdaq:OPWV) today said it filed complaints against Apple Inc. and Research In Motion Limited in order to protect its intellectual property on how mobile devices connect to the Internet.

The complaint, filed at the International Trade Commission (ITC) in Washington, DC, requests that the ITC bar the import of smartphones and tablet computers that infringe Openwave patents, including, but not limited to, Apple’s iPhone 3G, iPhone 3GS, iPhone 4, iPod Touch, iPad and iPad 2; and RIM’s Blackberry Curve 9330 and Blackberry PlayBook. Openwave also filed a similar complaint in federal district court in Delaware.

“Openwave invented technologies that became foundational to the mobile Internet. We believe that these large companies should pay us for the use of our technologies, particularly in light of the substantial revenue these companies have earned from devices that use our intellectual property,” said Ken Denman, Chief Executive Officer of Openwave. “Before filing these complaints, we approached both of these companies numerous times in an attempt to negotiate a license of our technology with them and did not receive a substantive response.”

For more than 15 years, Openwave has pioneered the development and patenting of mobile Internet technologies. Openwave was the first company in 1997 to enable operators to deploy mobile Internet browsing, and the first in 2001 with technology that enables photo messaging. The company owns approximately 200 patents that support its software business with telecommunications operators worldwide.

“In the end, litigation is the only way we can defend our rights against these large companies that have effectively refused to license the use of the technologies we invented, are using today, and are continuing to develop for our customers,” Mr. Denman said. “We are proud that our technology is helping deliver such a rich mobile internet experience to consumers around the world.”

The Openwave complaints specifically allege that Apple and RIM infringe upon five Openwave patents. These patents cover technology that gives consumers access to the Internet from their mobile devices:

Openwave’s 212 patent generally allows a user to use e-mail applications on a mobile device when the network is unavailable – such as when a user is on an airplane. For more information, please refer to the complaint, page 8.
Openwave’s 409 patent generally allows the mobile device to operate seamlessly, and securely, with a server over a wireless network. For more information, please refer to the complaint, page 10.
Openwave’s 037 patent generally allows access to updated versions of applications on mobile devices. For more information, please refer to the complaint, page 9.
Openwave’s 447 patent generally allows consumers to experience an improved user experience in navigating through various pages of information without delay. For more information, please refer to the complaint, page 12.
Openwave’s 608 patent generally relates to cloud computing. For example, the 608 patent enables data to be accessed or shared by different devices such as mobile handsets or computers. For more information, please refer to the complaint, page 6.

“As it became clear that these large companies would not substantively cooperate with us, the Company carefully evaluated its legal position and litigation prospects. We believe that our legal position is strong and our prospects of prevailing are very good,” said Mr. Denman. “In our analysis, this is our best option to unlock the substantial value of our intellectual property. The ITC process typically results in judgments within 15-18 months. We anticipate that a favorable judgment will lead the companies to negotiate licensing agreements with us.”

Openwave has posted a letter to its shareholders describing the litigation, as well as the complaint as it is filed and other related materials, on its website at www.openwave.com.

About Openwave

Openwave Systems Inc. (Nasdaq:OPWV) is a global software innovator delivering all-Internet Protocol (all-IP) mediation and messaging solutions that enable communication service providers to create and deliver smarter services.

Openwave helped pioneer the mobile Internet during the mid-1990s, and holds many foundational patents on how mobile devices connect to the Internet. Openwave’s software enabled many industry firsts for its operator customers, including Internet browsing via a cell phone, messaging of photos via a cell phone, and the world’s first Wireless Access Protocol (WAP) deployment.

Today, Openwave provides communication service providers with all-Internet Protocol (all-IP) mediation and messaging solutions. Its mediation software enables carriers to get more from their systems as they meet the rising demand that the mobile Internet is placing on their hardware. Its messaging software enables carriers to better manage and protect their messaging content and enables consumers to better share rich content.

Building on its mobile data heritage, Openwave mobilizes the Internet with data-driven solutions that comprehensively enhance IP traffic and increase the value of the mobile network. Openwave arms its customers with a 360-degree view of network activity plus the tools to help them proactively optimize network resources (Congestion Control), react to user behavior with smarter data plans and services (Price Plan Innovation), and deliver a contextually relevant messaging experience (Converged Messaging).

Openwave is a global company with a blue chip customer base spanning North America, Latin America, Australia and New Zealand, Asia, Africa, Europe, and the Middle East. Openwave is headquartered in Redwood City, California.

Cautionary Language Regarding Forward-Looking Statements

The statements in this press release with respect to the beliefs of Openwave regarding the prospects of the litigation it has launched, and the effects that a favorable outcome in the litigation will have, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1943 and Section 27A of the Securities Act of 1933. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Notwithstanding changes that may occur with respect to matters relating to these forward looking statements, Openwave assumes no obligation to update the forward-looking statements included in this press release except as required by law.

In particular, the following risks, among others, could cause actual results to differ materially from those projected: (a) intellectual property litigation is inherently uncertain, and no outcome can be guaranteed; (b) other entities may assert rights to Openwave’s intellectual property, which could weaken Openwave’s position in the litigation; (c) the cost of litigation is uncertain and could be very high, which could cause Openwave to settle the litigation for amounts less than amounts to which it believes it is entitled; (d) defendents in the litigation may assert counterclaims which may reduce the strength of Openwave’s claims; and (e) those risks discussed in Openwave’s filings with the U.S. Securities and Exchange Commission ("SEC"), including under the caption “Risk Factors” in the company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011. These documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave's website at www.openwave.com.