Facebook Counters Mitel Network Patent Lawsuit With Two AOL Patents


Facebook Inc (NASDAQ:FB) countered the patent lawsuit of Mitel Networks Corporation (NASDAQ:MITL), a Canadian based communications and collaboration software company, with a patent infringement case, using  two AOL patents it acquired from Microsoft Corporation (NASDAQ:MSFT) for $550 million last April.

Facebook Counters Mitel Network Patent Lawsuit With Two AOL Patents

Facebook Inc (NASDAQ:FB) filed its patent complaint against Mitel Networks in the U.S. District Court of Northern California on Friday, August 10, 2012. The company cited the venue is appropriate and the court has personal jurisdiction in the case, because Mitel is conducting continuous business operations in the State of California.

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In addition, Facebook Inc (NASDAQ:FB) also filed a separate motion, asking the Delaware Court to dismiss the patent lawsuit filed by Mitel Networks. The social network giant argued the allegations of the Canadian software company has no merit and the venue is inappropriate, because its principal business is located in Arizona and its office is in California. On the other hand, Facebook’s main office, its documents, and witnesses related to the case is located in California.

In its lawsuit, Mitel Networks claimed that Facebook infringed two of its patents-Automatic web page generator with U.S. patent no.5940834 and the Pro-active features for telephony with patent no. 7292685. According to the company, Facebook did not respond to the letters sent by Mitel in July and September 2011, regarding the social network giant’s potential patent infringements. Mitel wants Facebook to pay a reasonable compensation to be determined by the court.

On the other side of the coin, Facebook alleged that Mitel infringed its  patents on User definable on-line-co-user lists with U.S. patent no 7454709 and Telephone status notification system with U.S. patent no. 7778396.

Based on Facebook’s complaint, Mitel’s Unified Communicator Advanced product infringed its 709 and 396 patents and will bring continues damage its business. The social network giant also claimed the Mitel 500 Communication Platform and the Mitel Communications Director also infringed the 396 patent.

Facebook Inc (NASDAQ:FB) is seeking adequate financial compensation from Mitel’s patent infringement, including pre-and post judgment interest and further relief determined by the court.

Meanwhile, Mitel announced last week that it will cut its global workforce by 10 percent or 200 jobs, after the company lowered its revenue expectations to land between $138 million to $139 million for the second quarter of 2012. The company’s previous revenue estimate was between $150 million to $155 million. Mitel will report its second quarter earnings on August 30.

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