As previously reported on a previous Current Report on Form 8-K (filed June 29, 2011) on June 28, 2011, the United States District Court for the District of Colorado (the "Court") issued an Opinion and Order Regarding Claim Construction (the "Order") following a January 28, 2011 Markman hearing (a proceeding under U.S. patent law where both sides present to the Court their arguments on how they believe patent terms should be construed). The Opinion construed a claim term in United States Patent 5,491,774, one of the Company's Flash-R patents, more narrowly than proposed by the Company.

On July 28, 2011 the parties to the litigation filed a Joint Statement in Response to June 28, 2011 Order Regarding Claim Construction (the "Statement") as required by the Order. The Statement proposes a plan to take future discovery to clarify infringement-related issues arising from the Court's claim construction as outlined in the Order. The Statement also requests that the Court construe a claim term from a second Flash-R patent in the litigation.

The foregoing summary of the Statement does not purport to be complete and is qualified in its entirety by reference to the Statement filed as an exhibit to this Current Report on Form 8-K and incorporated herein by this reference.

While the Company continues to evaluate future licensing and enforcement actions, the Order, the Statement and requested clarifications could negatively affect future licensing prospects.