Aerocrine provides IP update

SOLNA, Sweden – 5 May 2010 – Aerocrine AB today announced that it has received a written decision from the District Court of Mannheim that Aerocrine infringes the German counterpart of a U.S. patent that Apieron Inc. purchased in 2004. Since Apieron has filed for bankruptcy and is in liquidation, the decision has no current impact on Aerocrine’s operations.

In Germany, unlike most other countries, disputes regarding patent infringement and patent validity are decided in separate proceedings by different courts. Therefore, the validity of Apieron’s German patent, which is contested by Aerocrine in a nullity proceeding in the Munich Patent Court set for hearing in December 2010, has not been decided by the Mannheim court. Although Apieron is in bankruptcy, the Mannheim Court rendered its decision because the case was fully briefed before Apieron filed its bankruptcy petition. “Aerocrine will appeal the decision from the Mannheim Court and our German operations continue as normal. The present decision will not impact Aerocrine’s business unless the decision is enforced by the posting of a bond as security for Aerocrine’s future damages if the patent is invalidated or the decision is otherwise reversed on appeal,” said Paul de Potocki, CEO of Aerocrine AB. “And even if a bond is posted, Aerocrine would not be obliged to recall products from its German customers according to the present decision”. Apieron filed a Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Northern District of California on 30 March. A trustee has been appointed by the Court to administer the bankruptcy estate with the task of liquidating Apieron’s assets. Aerocrine originally filed complaints against Apieron in the U.S. in 2008 for infringing three U.S. patents. In a counterclaim, Apieron asserts two U.S. patents against Aerocrine that Apieron purchased in 2004. Aerocrine, however, reached a global settlement for those same patents with their previous owners in a 2003 License and Settlement Agreement that is governed by U.S. law. Aerocrine’s patent infringement claims against Apieron in the U.S. are stayed as a result of Apieron’s bankruptcy proceedings.