IRIDEX
Corporation (Nasdaq/NMS: IRIX) announced today that the Court has ruled in
favor of IRIDEX regarding claim construction for thirteen of fourteen
patent terms involved in the patent infringement action it brought against
Synergetics USA, Inc. Claim construction is the process in which a judge,
during a "Markman" hearing, rules on the interpretation, definition and
scope of patent claims which are under dispute in a patent litigation.
The suit, Case Number 05-CV-1916 CDP, in the United States District
Court for the Eastern District of Missouri, filed on October 19, 2005,
alleges that Synergetics infringes IRIDEX's U.S. Patent No. 5,085,492
entitled "Optical Fiber With Electrical Encoding." This intellectual
property is embraced in the IRIDEX EndoProbe(R) products and other IRIDEX
laser delivery devices.
On July 7, 2006, the Hon. Judge Catherine Perry, United States District
Judge, issued her Claim Construction Ruling in which she agreed with IRIDEX
on the meaning of thirteen of the fourteen patent terms at issue. The
Court's ruling followed a "Markman" hearing, named after a 1995 ruling by
the United States Supreme Court which provides that judges, rather than
juries, are to determine the proper interpretation of patent claims.
This is significant because Synergetics tried to use the Markman
hearing to narrow IRIDEX's patent, but Synergetics' arguments were
rejected. In particular, the Court confirmed IRIDEX's position that its
patent may cover a two-piece probe connector, such as the one sold by
Synergetics. With respect to the fourteenth patent term, the Court's
decision split the difference between IRIDEX's and Synergetics' positions.
This portion of the Court's decision is not expected to have any negative
effect on IRIDEX's case.
"Over the years, IRIDEX has invested significantly in its intellectual
property and we are pleased that the Court recognized the breadth of the
IRIDEX invention," said Barry G. Caldwell, President and CEO of IRIDEX. "We
are gratified that our belief in the strength of our intellectual property
has been validated by the Court's ruling. Naturally, this is but one step
in the process, and there is always a risk associated with litigation.
Nonetheless, we believe that Synergetics clearly infringes our patent, and
this ruling brings us closer to an ultimate resolution."
About IRIDEX
IRIDEX Corporation is a leading worldwide provider of therapeutic based
laser systems, disposable laser probes and delivery devices to treat eye
diseases in ophthalmology and skin diseases in dermatology markets (also
referred to as aesthetics). IRIDEX products are sold in the United States
through a direct sales force and internationally through a network of 77
independent distributors into 107 countries. For further information, visit
the Company's website at iridexe.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Act of 1934, as amended, relating to the
potential outcome of the ongoing patent infringement action between IRIDEX
Corporation and Synergetics USA, Inc. Actual results could differ
materially and adversely from those projected in the forward-looking
statements based on, among other things, the court's final and interim
decisions relating to the action and the filings of and negotiations, if
any, between the Company and Synergetics USA, Inc. The Company is subject
to additional risks and uncertainties which include, but may not
necessarily be limited to, those risks and uncertainties described in our
Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the
fiscal year ended December 31, 2005 filed with the Securities and Exchange
Commission. Forward- looking statements contained in this announcement are
made as of this date and will not be updated.
IRIDEX Corporation
iridex/