Sokymat Final Appeal denied


July 17, 2003

Munich, Germany--
The Oberlandesgericht (Superior District Court) in Munich, Germany has ruled against Sokymat SA and Ake Gustafson, on July 17, 2003, with respect to the inventorship and ownership of European Patent No. 0588944 (case no. 6 U 2535/02). The ruling renders the claims of European Patent No. 0588944, which issued to Algernon Promotions Ltd. on 23.12.02, fully enforceable by its owners and licensees, Algernon Promotions Ltd., and Trovan, Ltd. Patent No. 0588944 lists claims relating to the direct bonding technology developed by Trovan engineers.

Sokymat was initially retained as a subcontractor to Trovan and learned about the Trovan technology under the terms of a Non-Disclosure Agreement between the parties. Unbeknownst to Trovan, Sokymat proceeded to develop manufacturing capability for products based on Trovan’s patented direct bonding technology and other confidential information revealed under the Non-Disclosure Agreement and to sell products on its own account.

Some of the primary applications Sokymat is supplying with product utilizing the direct-bonding technology are: automotive applications, specifically ignition immobilizers; anti-theft security applications, involving the chipping of items such as bicycles, motorcycles, boats, electronics etc.; access control applications as well as fisheries, livestock and companion animal applications.

There is a parallel, ongoing litigation by Algernon/Trovan against Sokymat SA in the United States concerning a patent covering the U.S. market only. “We are sorry for Sokymat customers who might have been using infringing products over the years. However, we will make an effort to reach accommodations with interested parties on an individual basis,” Mr. Salomon said, on behalf of Trovan, Ltd., upon publication of the final verdict.

The Algernon/Trovan European patent portfolio consists of a number of manufacturing and operational patents, with additional patents pending.

For additional information in the United States please contact:

Electronic Identification Devices, Ltd.
Barbara Masin