Federal Circuit Court's Ruling

The Federal Circuit Court of Appeal ("the Appellate Court") accepted briefing and held oral argument on the Company's appeal. Today, the Appellate Court in a written opinion, found that the lower court's holding to apply collateral estoppel as to the Company's '108 patent was in error and should be reversed. This means that the Company is not bound to the construction of certain terms in the '108 patent that were construed by the Colorado action as to the '774 patent. This opens the door for the Company to argue at a new claim construction hearing the meaning of those terms unencumbered by the 2010 Colorado construction. The Appellate Court, however, did uphold the lower court's application of collateral estoppel to the '774 patent, which is now expired.