COURT RULES PATENT CLAIMS COVER HYBRID FIBER-COAX NETWORKS IN PATENT INFRINGEMENT SUIT AGAINST TCI

New York, April 6, 1998 — A Federal Court Judge’s ruling last week in a patent infringement lawsuit between Intellectual Property Development, Inc. (IPD) and Tele-Communications, Inc.(TCI) confirmed that IPD’s U.S. Patent covers hybrid fiber-coax cable networks of the type employed throughout the cable industry. The lawsuit is pending in the Federal District Court for the Southern District of New York (Civil Action No. 94CIV62960). IPD is represented by the law firm Baker and McKenzie.

Hybrid fiber-coax architecture is one in which optical fiber brings a strong clear signal from a central source to a distribution point relatively near a group of subscribers. A coaxial network is then used to take the signal from the distribution point to the subscribers.

The hybrid fiber-coax architecture covered by U.S. Patent No. 4,135,202 was invented in the laboratories of Rediffusion, Inc., the largest British cable company, which later became a subsidiary of Maxwell Communications, Ltd., formally run by the late-British communications magnate, Robert Maxwell.

The Court made its ruling that the patent claims cover hybrid fiber-coax cable networks after a 5-day "Markman Hearing," in which both IPD and TCI presented evidence and witnesses. In its ruling, the Court stated hybrid fiber-coax is "... the system architecture most commonly used in the delivery of cable television today."

Hybrid Fiber-Coax

IPD owns the exclusive rights to commercialize the hybrid fiber-coax patent and a group of other communications-related patents under an agreement with Arthur Andersen & Co., S.C., the liquidators of Maxwell Communications, Ltd.

"IPD is pleased that the interpretation of the hybrid fiber-coax patent claims is now confirmed by the Court. IPD has always been and remains willing to license the hybrid fiber-coax patent to TCI on reasonable terms. We have also notified all major U.S. and Canadian cable operators of the patent and are willing to similarly offer reasonable licenses to any cable operator," said Howard Krass, President of IPD.

Intellectual Property Development Inc., based in Miami, is in the technology transfer business, concentrating on the commercializing and licensing of technology worldwide.