Ongoing litigation between ContextVision and Sapheneia Commercial Products - first instance decision.

Stockholm, June 13th 2012.

In the ongoing litigation between ContextVision AB and Sapheneia Commercial Products AB et al. the district court in Linkoeping has ruled in favour of Sapheneia. However, the court also stated that it had no possibility to form an opinion of whether Sapheneia’s software infringes ContextVision’s software GOPView. The district court ruled that ContextVision is to reimburse Sapheneia for its legal and procedural cost in amount of TSEK 3,855.

ContextVision's board of directors and management are baffled about this outcome and the company plans to appeal the decision. Mr. Per Josefson, counsel of ContextVision, comments the judgment as follows: “In particular considering that the judgment in material respects lacks a coherent analysis, we recommend ContextVision to appeal this first instance decision”.  

It is worth noting that yesterday's court ruling will not have any impact on the company's operations going forward. Neither will the established cash reserve of MSEK 3.9 have any material negative impact on the company's financial position, with a current cash position exceeding MSEK 20 and a cash flow from operations that is expected to continue to be positive.

The company will provide updates on further developments with regard to this litigation whenever such updates are warranted.

Background

• In 2006 five employees left ContextVision. Together with two Americans who had been engaged as consultants to ContextVision, they set up a new company, Sapheneia Commercial Products AB (SCP). Immediately after having left ContextVision, SCP started its business that directly competes with ContextVision.
• In 2007 SCP and its American parent company as well as the American consultants and one company belonging to one of the consultants initiated legal proceedings before Linköping District Court requesting a declaratory judgment to the effect that they have not infringed ContextVision’s copyrights and that they are not liable in damages to ContextVision as a consequence of any use or disclosure of trade secrets. In return, ContextVision has requested a declaratory judgment to the effect that SCP is liable in damages due to its use and disclosure of trade secrets.
• The main hearing in these cases was held in April 2012 and the judgment was rendered by the District Court on June 12.
• In 2008 ContextVision initiated legal proceedings against SCP at the Stockholm City Court requesting a declaratory judgment to the effect that ContextVision is the owner of a patent application submitted by SCP and which states two of ContextVision’s former employees as inventors. The main hearing in this case is scheduled for October 2012.  

For any further questions and enquiries, please, contact

Anita Tollstadius
CEO
Phone: +46 (0) 8 7503550