Destiny Wins Early Ruling, Case Proceeding Towards Summary Judgment Dismissal Based on Extraterritoriality Defense

VANCOUVER, British Columbia, Dec. 3 /PRNewswire-FirstCall/ -- Destiny Media Technologies (OTC Bulletin Board: DSNY) is pleased to provide an update on US patent litigation launched against Destiny last May by Yangaroo (YOO-TSX, Pink Sheets: YOOIF).

Comments company CEO Steve Vestergaard, "We consider this case a nuisance suit and have responded with five strong defenses. We are taking advantage of the local court's 'fast track summary judgment' procedure with one of those defenses called extraterritoriality. Yangaroo's patent contains a single method claim and U.S. Federal court precedent holds that if any steps of the patented method occur outside the United States, there is no infringement of that method claim. We believe that this precedent applies in this case because all of Destiny's servers reside outside the United States. As a result, the Court ruled in Destiny's favor on October 13, 2009 that all discovery in the litigation would be stayed except that relevant to the extraterritoriality defense. In order to expedite this legal process, we are providing Yangaroo's counsel a copy of the Player and Encoder software subject to certain strict conditions they have agreed to in a stipulation filed with the court on December 2, 2009. The court's scheduling order requires fact discovery to be completed by December 22, 2009 and that Destiny's summary judgment motion for dismissal be filed by February 15, 2010."

According to Mr. Vestergaard, Yangaroo knew that Destiny's servers were in Vancouver, Canada, based on discovery in the Canadian case. "If we win our summary judgment against Yangaroo, we will be seeking our legal fees and other damages because they launched this case knowing that our servers were located outside the United States. If our motion for summary judgment is unsuccessful, then Yangaroo will still have to complete the remaining fact discovery, prove infringement, survive challenges to the patent's validity and withstand other legal defenses in order to prevail in this case."

About Destiny Media

Destiny Media (http://www.dsny.com) is the developer of the Play MPE® system (http://www.plaympe.com) which the recording industry uses to securely distribute new pre-release music through the internet to trusted recipients such as radio, media and VIP's. Real time usage statistics are available at http://www.plaympe.com/v4/company/plaympestats.php

Destiny Media Contact:
Steve Vestergaard
CEO Destiny Media Technologies, Inc.
604 609 7736 x222
steve@dsny.com

Safe Harbor Statement:

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

SOURCE Destiny Media Technologies

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