TEXARKANA, Texas--()--LecTec Corporation (OTCBB: LECT) announced today that the United States District Court for the Eastern District of Texas issued Orders on December 16, 2010, regarding the patent infringement litigation entitled LecTec Corporation v. Chattem, Inc. et al. Defendants Prince of Peace Enterprises, Inc. and Chattem, Inc. had previously filed joint motions for summary judgment: (1) of invalidity of U.S. Patent Nos. 5,536,263 and 5,741,510 based on the on-sale bar of 35 U.S.C. § 102(b); and (2) of invalidity of U.S. Patent No. 5,741,510 pursuant to 35 U.S.C. § 102 and/or § 103, and in view of the Aqua-Patch. LecTec had also filed motions for summary judgment: (1) on, and to preclude testimony related to, Defendants’ 35 U.S.C. § 102(b) invalidity defense based on the Aqua-Patch; and (2) on infringement of U.S. Patent Nos. 5,536,263 and 5,741,510 by the Defendants.
“These Orders resolve yet another set of motions, clearing the way for trial beginning January 4, 2011. We are in full trial preparation and look forward to having the opportunity to have a jury determine the resolution of this patent infringement dispute.”
The Court denied both of Defendants’ summary judgment motions on invalidity relating to the on-sale bar of 35 U.S.C. § 102(b) and the Aqua-Patch. The Court also denied LecTec’s summary judgment motions on infringement and to preclude Defendants’ Aqua-Patch invalidity defense.
Greg Freitag, LecTec’s CEO stated: “These Orders resolve yet another set of motions, clearing the way for trial beginning January 4, 2011. We are in full trial preparation and look forward to having the opportunity to have a jury determine the resolution of this patent infringement dispute.”
LecTec is an intellectual property (“IP”) licensing and holding company with approximately $9.3M in cash at September 30, 2010. LecTec holds multiple domestic and international patents based on its original hydrogel patch technology and has also filed for a provisional patent for its hand sanitizer patch. The LecTec hydrogel patch technology allows for a number of potential applications, including its previously marketed TheraPatch® products, while its anti-microbial hand sanitizer patch is intended to be dry, thereby rendering the patch harmless in the event that it is licked, chewed, or exposed to the eye. An initial prototype of the hand sanitizer patch has been developed and LecTec intends to engage a strategic partner to complete its hand sanitizer patch development. Pursuit of manufacturing and marketing/co-marketing partners for products from LecTec’s IP is also ongoing. LecTec has a licensing agreement (“Novartis Agreement”) with Novartis Consumer Health, Inc., which pays royalties to LecTec from time to time, within the terms of the Novartis Agreement, based upon a percentage of Novartis’ net sales of licensed products. LecTec takes legal action as necessary to protect its IP and is currently involved in two patent infringement actions. Finally, LecTec is pursuing a merger/acquisition strategy with the intent to leverage its cash asset and improve shareholder value and liquidity. The Company’s website is www.lectec.com.
This press release contains forward–looking statements concerning possible or anticipated future results of operations or business developments which are typically preceded by the words “believes,” “wants,” “expects,” “anticipates,” “intends,” “will,” “may,” “should,” or similar expressions. Such forward looking statements are subject to risks and uncertainties, which could cause results or developments to differ materially from those, indicated in the forward–looking statements. Such risks and uncertainties include, but are not limited to, the Company’s dependence on royalty payments from Novartis Consumer Health, Inc., which is selling an adult vapor patch licensed by the Company, the Company’s dependence on key personnel and Board of Director members, the Company’s pending patent infringement litigation against Chattem, Inc. and Prince of Peace Enterprises, Inc., the issuance of new accounting pronouncements, information disseminated on internet message boards from posters expressing opinions that may or may not be factual, the availability of opportunities for license, sale or strategic partner agreements related to patents that the Company holds, limitations on market expansion opportunities, and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, and particularly as described in the “Risk Factors” included in our Form 10–K for the year ended December 31, 2009.