HOUSTON, July 17, 2018 /PRNewswire/ -- ION Geophysical Corporation (NYSE: IO) today announced that the Federal Circuit Court denied WesternGeco's petition for a rehearing on the Patent Trial and Appeal Board's decision to cancel their patent claims. ION engaged in parallel proceedings against WesternGeco arising from a procedure known as "Inter Partes Review," an administrative proceeding at the U.S. Patent and Trademark Office that allows any party to challenge the validity of a patent.
The Patent and Trademark Office ruled in 2015 that four of the six patent claims that WesternGeco prevailed on in their case against us in the District Court never should have been granted. WesternGeco appealed this ruling to the Court of Appeals, and, in May, the Court of Appeals affirmed the invalidation of these four WesternGeco streamer system patents.
"While the District Court didn't assign particular values to any of the six claims, we believe that the bulk of any damages assessed against us are attributable to cancelled patent claims," stated Brian Hanson, ION's President and Chief Executive Officer. "After the Supreme Court heard arguments in our case in April, the Federal Circuit affirmed a finding by the Patent and Trademark Appeals Board that four of the six patent claims that supported the damages to WesternGeco were based on patents that never should have issued. We will seek a new trial as to damages and will forcefully argue in any new trial that the two remaining claims cannot support lost profits. In the event that we do not prevail in the Court of Appeals on our direct competitor claim, we intend to forcefully challenge the award of lost profits on the basis that the bulk of WesternGeco's damages are attributable to patents that never should have been issued."
ION develops and leverages innovative technologies, creating value through data capture, analysis and optimization to enhance critical decision-making, enabling superior returns. For more information, visit iongeo.com.
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Steve Bate, +1 281.552.3011
EVP, General Counsel & Corporate Secretary
Matthew Powers, +1 713.366.7226
The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include risks associated with the WesternGeco litigation and other related proceedings. We cannot predict the final outcome or timing of this litigation or the related proceedings. For additional information regarding the WesternGeco litigation, see our Form 10-K for the year ended December 31, 2017, filed on February 8, 2018. Additional risk factors, which could affect actual results, are disclosed by the Company in its fillings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.
SOURCE ION Geophysical Corporation