"After a significant amount of legal and patent expert review, we believe the GTL patent highlighted above is worthy of the formal process of patent invalidation," said Richard A. ("Rick") Smith, Chief Executive Officer of Securus Technologies.
The United States Patent and Trademark Office has put a new "invalidation process" in place that allows litigants in patent infringement cases to attempt to invalidate patents. GTL has used this process to their advantage in having some pieces (claims) of Securus patents invalidated and we have done the same to GTL. Based on recent IPR rulings, we expect the invalidation process to eliminate approximately 50% of Securus and GTL previously approved patents. If that occurs, GTL will likely spend approximately $120 million and Securus will likely spend approximately $40 million in outside legal fees, both over a number of years. BUT, GTL will also have the added burden of trying to invalidate an additional 20 to 30 new patents Securus is getting approved each year – or likely approximately $30 million to $45 million per year in additional legal costs to them. This is an interesting/high-cost strategy that will not allow GTL to reinvest in their business, and should advantage Securus in the long term.
"Invalidating GTL existing patents is part of a process that they initiated two (2) years ago instead of negotiating a reasonable license agreement with Securus – a route that every other significant carrier in our sector has taken. We have negotiated 19 license agreements with carriers – 2 of those with GTL," said Smith. "The carriers that have negotiated license agreements all have received significant value – and I believe they have recognized that. Overall, our patent related metrics are superior to those of GTL so we should eventually prevail," concluded Smith.
ABOUT SECURUS TECHNOLOGIES
Headquartered in Dallas, Texas, and serving more than 3,450 public safety, law enforcement and corrections agencies and over 1,200,000 inmates across North America, Securus Technologies is committed to serve and connect by providing emergency response, incident management, public information, investigation, biometric analysis, communication, information management, inmate self-service, and monitoring products and services in order to make our world a safer place to live. Securus Technologies focuses on connecting what matters®. To learn more about our full suite of civil and criminal justice technology solutions, please visit SecurusTechnologies.com.
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SOURCE Securus Technologies, Inc.