Visto Files Legal Action Against Microsoft for Misuse of Visto's Proprietary Technology

Dec 15, 2005, 00:00 ET from Visto Corporation

    REDWOOD SHORES, Calif., Dec. 15 /PRNewswire/ -- Visto Corporation has
 filed a legal action against Microsoft (Nasdaq:   MSFT) for misappropriating
 Visto's intellectual property. The complaint asserts that Microsoft has
 infringed upon multiple patents Visto holds regarding proprietary technology
 that provides enterprises and consumers with mobile access to their email and
 other data. The company is seeking a permanent injunction that would prohibit
 Microsoft from misappropriating the technology that Visto and its cofounder
 helped develop nearly a decade ago.
     Brian A. Bogosian, Visto's Chairman, CEO and President, will hold a press
 teleconference this afternoon at 2:00 pm Eastern Time / 11:00 am Pacific Time
 to discuss the lawsuit and answer questions from members of the media. Members
 of the media may dial in at (877) 357-0594. The conference ID is 3370519.
     "Microsoft has a long and well-documented history of acquiring the
 technology of others, branding it as their own, and entering new markets,"
 said Mr. Bogosian. "In some cases, they buy that technology from its creator.
 In other cases, they wrongfully misappropriate the intellectual property that
 belongs to others, which has forced them to acknowledge and settle large IP
 cases with companies like Sun, AT&T and For their foray into mobile
 email and data access, Microsoft simply decided to misappropriate Visto's well
 known and documented patented technology."
     Visto has been at the forefront of developing mobile communications
 solutions for nearly ten years. Company co-founder Daniel Mendez and others
 developed the system to allow consumers to securely receive their email and
 other sensitive data via mobile phones or other mobile devices while
 traveling. Mendez and Visto went on to patent the system that drives email
 from personal or business servers to mobile devices like cell phones and
 allows users to access sensitive data and email stored behind highly secure
 corporate firewalls.
     "With the recent explosion in smart phone technology and demand for mobile
 email access, the market has caught up with Visto's original vision," said Mr.
 Mendez. "We worked many long nights over many years and invested heavily to
 develop and patent our technology at a time when many people thought we were
 working on future fantasies. Now, when the market potential is obvious to
 everyone, other companies want to misappropriate the technologies that we
 invented and to benefit, for free, from our hard work and innovation."
     "For more than a decade, small, innovative companies in Silicon Valley and
 elsewhere have lived in fear of the day Microsoft decides to enter their
 market," Bogosian said. "They are a big, powerful, wealthy company, but they
 have no real growth, even in their most profitable divisions. They want to
 show investors that they can sustain growth in a new, developing market, like
 mobile access to email and data, but they cannot be permitted to do that by
 misappropriating another company's intellectual property."
     "Innovative companies have been pummeled out of existence or into minor
 players after Microsoft decided to enter their markets," Bogosian added.
 "Netscape and RealNetworks are among the best known examples. Courts around
 the world have ruled time after time against Microsoft, saying that it has
 acted either inappropriately or in violation of the law, especially concerning
 how they have treated competing companies. We will not let that happen to
     Visto is a leading global provider of communications platforms. Individual
 and business subscribers get Visto Mobile service -- which is invisible to the
 user -- through their mobile phone carrier. Visto's clients include many of
 the world's largest mobile phone carriers like Cingular, Sprint-Nextel, the
 Vodafone Group, and Rogers Wireless.
     Headquartered in Redwood Shores, CA, Visto has over 300 employees spread
 across offices in ten countries. The company holds 25 patents, including those
 related to mobile access email and data systems, and has 57 patents pending.
     Concerning the suit filed in the U.S. District Court for the Eastern
 District of Texas, Visto asserts that Microsoft's Windows Mobile 5.0 is a
 blatant infringement on Visto's patented technology. Visto's concerns about
 this market are heightened by Microsoft's recent decision to bundle Windows
 Mobile 5.0 with their already market-dominating Exchange server software. This
 method of bundling software has led Microsoft to be prosecuted by competition
 authorities in the past, and in this case, potentially increases the rate and
 manner in which their infringement on Visto's patents occurs.
     Visto's lawsuit specifically alleges that Microsoft has infringed on three
 patents relating to its mobile access to email and data technology:
      * U.S. Patent No. 6,085,192 titled, "System And Method For Securely
        Synchronizing Multiple Copies Of A Workspace Element In A Network"
      * U.S. Patent No. 6,708,221 titled, "System And Method For Globally And
        Securely Accessing Unified Information In A Computer Network"
      * U.S. Patent No. 6,151,606 titled, "System And Method For Using A
        Workspace Data Manager To Access, Manipulate And Synchronize Network
     The complaint seeks a permanent injunction that would prohibit Microsoft
 from continuing to misappropriate Visto's intellectual property. The company
 also seeks monetary damages as compensation for Microsoft's illegal actions.
     "We are confident that our country's legal system will uphold the
 protections provided for in the law. The law protects innovators from
 corporate predators -- large or small -- including those with well documented
 histories of bad corporate behavior," said Mr. Bogosian.
                                  About Visto
     Visto delivers the leading global platform for mobile operators to provide
 wireless push email to the broadest set of mobile devices. Visto's open
 solution enables email for the mass market, targeting large enterprises, small
 businesses, mobile professionals and consumers. Visto's customized, brandable
 solutions are available through mobile operators worldwide including Cingular,
 Elisa, KPN, Rogers Wireless, SmarTone, SFR, Sprint-Nextel, TELUS Mobility and
 the Vodafone Group.
     Established in 1996, Visto is backed by Oak Investment Partners, Draper
 Fisher Jurvetson, DFJ ePlanet Ventures, VantagePoint Venture Partners,
 Meritech Capital Partners, Rustic Canyon Ventures, Allegis Capital and
 Blueprint Ventures. For more information, visit
     **NOTE: Visto Chairman, CEO and President Brian Bogosian will be available
 today for questions at 2:00 pm EDT/11:00 am PDT. Please dial-in at
 (877) 357-0594. The conference ID is 3370519.

SOURCE Visto Corporation