| Legal Proceedings |
Note
K – Legal Proceedings
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[1] |
On
September 8, 2025, the Company’s wholly-owned subsidiary, HFT Solutions, LLC, commenced
patent litigation against Optiver US LLC and Optiver Trading US LLC in the United States
District Court for the Western District of Texas for infringement of certain patents within
the Company’s HFT Patent Portfolio. On November 21, 2025, the Optiver defendants filed
their answer and counterclaims of non-infringement and invalidity of the asserted patents.
A trial date has been scheduled for June 7, 2027. |
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[2] |
On
June 27, 2025, the Company commenced patent litigation against Samsung Electronics Co., LTD
and Samsung Electronics America, Inc. (collectively, “Samsung”) in the United
States District Court for the Eastern District of Texas, Marshall Division, for infringement
of certain patents within the Company’s M2M/IoT Patent Portfolio. The lawsuit alleges
that Samsung infringes the Company patents by supporting certain eSIM (embedded Subscriber
Identification Module) and certain 5G technologies in its mobile devices, including its Galaxy
smartphones, watches and tablets. The parties
have conducted discovery. A trial date has been scheduled for June 7, 2027. |
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[3] |
On
December 24, 2024, the Company’s wholly-owned subsidiary, HFT Solutions, LLC, initiated
patent litigations against Citadel Securities, LLC and Jump Trading, LLC in the United States
District Court for the Northern District of Illinois for infringement of certain patents
within our HFT Patent Portfolio. In the Citadel action, on April 7, 2025, the defendant Citadel
filed a motion to dismiss under 35 U.S.C. ? 101, asserting that the asserted patents are
directed to patent-ineligible subject matter. On December 1, 2025, the Court denied Citadel’s
motion to dismiss. On January 5, 2026, Citadel filed its answer asserting defenses of non-
infringement, patent validity and counterclaims for the same. In the Jump Trading action,
on April 7, 2025, defendant filed an answer and counterclaims of non-infringement and invalidity
of the asserted patents. |
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[4] |
On April 4, 2014 and
December 3, 2014, the Company initiated litigation against Google Inc. (“Google”) and YouTube, LLC
(“YouTube”) in the U.S. District Court for the Southern District of New York for infringement of several of its patents
within its Cox Patent Portfolio which relate to the identification of media content on the Internet. The lawsuit alleges that Google
and YouTube have infringed and continue to infringe certain of the Company’s patents by making, using, selling and offering to
sell unlicensed systems and related products and services, which include YouTube’s Content ID system. In April 2024,
following a motion for summary judgment by defendants, the U.S. District Court for the Southern District of New York issued a
judgment dismissing the Company’s patent infringement claims finding that the asserted claims of two of the patents are
invalid for indefiniteness and granting summary judgment that that the asserted claims of another patent are not infringed by
Google’s accused system. The Court’s ruling disposes of all of the Company’s claims in the case. On May 14, 2024,
the Company filed a notice of appeal to the U. S. Court of Appeals for the Federal Circuit and oral argument on the appeal took
place on March 9, 2026. A decision on the appeal is pending. |
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[5] |
On
February 21, 2025, the Company received an additional settlement payment of $150,000 from
a defendant in litigation involving the Company’s Remote Power Patent as a result of
satisfaction of certain conditions in the settlement agreement. |
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