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Xerox Wins Legal Action Involving Service Company, Patent Infringement

Press release from the issuing company

STAMFORD, Conn.-- Aug. 31, 2001--After a legal battle that made its way to the U.S. Supreme Court, Xerox Corporation and Copier Services Unlimited, LLC have reached a settlement that resolves Xerox's remaining claims against CSU. Copier Services Unlimited, located in Overland Park, Kan., is an independent company offering service on Xerox copiers. Under the terms of the July 30 settlement, CSU has agreed to pay Xerox both a damages award for copyright infringement and additional compensation for patent infringement and attorney fees. The precise terms of the settlement agreement remain undisclosed. "Xerox's intellectual property is a prized and protected asset,'' said Christina Clayton, Xerox general counsel. "That's why Xerox will always take every step and make every effort to vigorously pursue patent infringement through trial and all levels of appeal.'' In 1994, Copier Services Unlimited filed a lawsuit claiming that Xerox's refusal to sell parts and manuals and license diagnostic software violated antitrust laws. Xerox filed counterclaims alleging that CSU had infringed Xerox's copyrights in diagnostic software and that CSU had infringed Xerox's patents in diagnostic software and certain Xerox parts. A federal district court ruled in favor of Xerox, rejecting CSU's antitrust claims and finding that CSU had infringed Xerox's patents and copyrights. The court also ruled that Xerox was not obligated to supply its patented and copyrighted parts, manuals, and software to its competitors. The U.S. Court of Appeals for the Federal Circuit affirmed the district court's decision in its entirety, and in January, the U.S. Supreme Court declined to hear CSU's appeal. The district court had awarded Xerox more than $1 million on the copyright infringement claim and allowed Xerox to pursue additional damages for patent infringement and the costs of bringing its copyright claims. The July 30 settlement brings the action to a close.

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