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Orem Company Battles Canadian Firm in Court

Posted on: Friday, 9 December 2005, 12:00 CST

By Robert Mimms, The Salt Lake Tribune

Dec. 9--A Canadian software company is contending U.S. markets have been opened by a federal judge's dismissal of a Utah competitor's lawsuit alleging patent and copyright infringement.

U.S. District Judge J. Thomas Greene's ruling will allow Symbility Solutions to ramp up "our efforts to market [property estimation products] to U.S.-based property insurance providers, adjusters, contractors and other stakeholders," said James Swayze, CEO of the software firm's parent company, Automated Benefits Corp.

But Brad Jackman, executive vice president of Orem-based Xactware Inc., disputed the impact of Greene's decision, saying it was based on jurisdictional issues, not the merits of Xactware's claims that Symbility violated its patents on an industry-leading property estimation software package. Xactware will take its patent, copyright and unfair competition complaint to Detroit, where its Canadian foes earlier filed a countersuit.

"We are pleased that we will finally begin to reach the merits of our claims against Symbility," Jackman said. "We have very clear goals in mind. . . [to] protect our intellectual property and protect the clients who trust us with their business." Reached in Toronto, Swayze insisted the Utah dismissal was an important victory, although it appears protracted litigation remains.

"Yes, it was thrown out on jurisdictional grounds, but having any claim against us go away is a positive," he said. In concluding his Dec. 1 dismissal order, Greene specifically ruled "without prejudice" -- which allows the plaintiff to refile on the same claim. He also wrote that the matter should go next to the Eastern District federal court in Michigan. That is where Symbility filed an amended complaint Thursday, seeking to have the Utah company's patents declared invalid.

The suit also alleged Xactware is guilty of malicious prosecution, abuse of process and violation of antitrust law. Different venue, same battle, according to Xactware.

"We have patented technologies in our software to provide our clients with superior technology and service, so when we believe our intellectual property rights are being violated . . . we must take appropriate action," Jackman said. Greene's ruling, Xactware maintained, is a minor setback that did not address allegations surrounding two patents covering aspects of its "Xactimate" software.

The Utah company claims Symbility's "Mobile Claims" programs incorporate protected features, images and trade symbols. Symbility has categorically denied violating either Xactware patent, also arguing the patents were improperly obtained and thus unenforceable.

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Source: The Salt Lake Tribune

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