SALT LAKE CITY, Jan. 20, 2015 (GLOBE NEWSWIRE) -- Online shopping retailer, Overstock.com, Inc. (Nasdaq:OSTK) announced it would appeal the $4 million verdict rendered Friday, Jan. 16 in a patent infringement case in Marshall, Texas.
Without prior notice, the plaintiff, Droplets, filed its case in 2011, and at trial alleged damages of $12.2 million against Overstock.com for infringement of three related patents, the first of which was filed in 2000, and issued in 2004. Overstock denied infringement, contested the validity of the patents and the high damage figure Droplets demanded.
"We are disappointed. We believe we do not infringe the patents, and will appeal this verdict as soon as possible," said Mark Griffin, general counsel of Overstock.com. "We will continue this fight at the next level where we are confident of a different outcome."
At trial, Overstock.com showed that Droplets created a product intended to address an internet speed problem. But as the internet evolved, other technologies resolved the speed problem and Droplets then, in Overstock.com's view, turned from product production to litigation as a business model.
"The abstract technical nature of the patents was particularly difficult," said Griffin. "We also believe Droplets used a highly inflated and improper damage model, and relied upon license comparisons that were also improper. We will make these issues the center of our appeal."
Separately, co-defendants, Sears and Kmart were collectively assessed $11 million in the verdict.
Overstock.com, Inc. (Nasdaq:OSTK) is a discount online shopping retailer based in Salt Lake City, Utah that sells a broad range of products including furniture, rugs, bedding, electronics, clothing, and jewelry. Worldstock.com, a fair trade department dedicated to selling artisan-crafted products from around the world offers additional unique items. Main Street Revolution supports small businesses across the United States by providing them a national customer base. Forbes ranked Overstock in its list of the Top 100 Most Trustworthy Companies in 2014. The NRF Foundation/American Express 2011 Customer Choice Awards ranked Overstock #4 in customer service among all U.S. retailers. Overstock sells internationally under the name O.co. Overstock Shopping (http://www.overstock.com and http://www.o.co) regularly posts information about the company and other related matters under Investor Relations on its website.
Overstock.com®, O.co®, Worldstock Fair Trade® and Club O Rewards® are registered trademarks of Overstock.com, Inc. O.info™, Club O™, Club O Dollars™ and Your Savings Engine™ are trademarks of Overstock.com, Inc.
This press release 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. Such forward-looking statements include, but are not limited to, statements of trial or appeal strategies or outcomes, and statements other than statements of historical fact. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Form 10-Q for the quarter ended Sept. 30, 2014, which was filed with the SEC on Oct. 28, 2014, and any subsequent filings with the SEC.