Ariba to Pay $37 Million To Settle ePlus Patent Suit
Jury Found "Willful Infringement" of Three ePlus Software Patents
HERNDON, VA - February 14, 2005 - ePlus inc. (Nasdaq NM: PLUS - news) today
announced that it has entered into a $37 million Settlement and License
Agreement with Ariba, Inc., after a Federal Court jury in Alexandria, VA found
that Ariba willfully infringed three ePlus software patents relating to
electronic procurement systems. The February 7th jury verdict found that all
ePlus patent claims tried in court, and associated elements, were valid and that
Ariba willfully infringed in every instance.
"This settlement is in the best interest of ePlus and our customers, as it
eliminates the uncertainty of the trial and inevitable appeals process which can
take several years," said Phillip G. Norton, ePlus' chairman, chief executive
officer and president, said. "We believe the settlement affirms the value of
ePlus' intellectual property, and will create better marketplace awareness of
our software and Enterprise Cost Management solutions."
The agreement calls for Ariba to pay ePlus $37 million in three cash
installments, all due by March 31, 2005. Any late payment by Ariba of the
settlement amount will result in an automatic revocation of Ariba's license
rights, without refund.
As part of the agreement, ePlus has also obtained a cross-license to all Ariba
patents, patent applications and foreign patent counterparts presently owned by
Ariba, and any acquired by Ariba for three years after the settlement date.
The settlement grew out of a patent infringement action filed by ePlus on May
26, 2004. The ePlus patents involve electronic procurement, and the inventions
allow end-users to perform a wide variety of functions, including, but not
limited to:
o perform electronic searches, selections and comparisons as well as
review items in multiple supplier catalogs;
o find equivalent items and suitable replacements;
o generate purchase orders from multiple vendors; and
o electronically check inventory
ePlus was represented by a legal team of the Washington DC and McLean, Virginia
offices of Hunton & Williams LLP, with lead attorneys Scott Robertson, Tom
Cawley, and Jennifer Albert.
"The United States patent laws have promoted the development of new and useful
technologies, like the ePlus patents, for over 200 years," said Scott Robertson,
counsel for ePlus. "This jury finding shows that firms like ePlus can continue
to innovate and invent with the assurance that their investment will be
preserved, especially against willful infringers. It was courageous of ePlus to
take on a competitor in the marketplace and stand up for what they believed was
right."
About ePlus inc.
A leading provider of Enterprise Cost Management, ePlus provides a comprehensive
solution to reduce the costs of purchasing, owning, and financing goods and
services. ePlus Enterprise Cost Management (eECM) packages business process
outsourcing, eProcurement, asset management, product and catalog content
management, supplier enablement, strategic sourcing, financial services and
document access and collaboration into a single integrated solution, all based
on ePlus' leading business application software. The company is headquartered in
Herndon, VA, and has more than 30 locations in the U.S and Canada. For more
information, visit www.eplus.com, call 888-482-1122 or email info@eplus.com.
ePlus, ePlus Enterprise Cost Management, eECM and/or other ePlus products
referenced herein are either registered trademarks or trademarks of ePlus inc.
in the U.S. and/or other countries. The names of actual companies and products
mentioned herein may be the trademarks of their respective owners
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release, which are not historical facts, may be
deemed to be "forward-looking statements". Actual and anticipated future results
may vary due to certain risks and uncertainties, including, without limitation,
the existence of demand for, and acceptance of, our services; our ability to
adapt our services to meet changes in market developments; the impact of
competition in our markets; the possibility of defects in our products or
catalog content data; our ability to hire and retain sufficient personnel; our
ability to protect our intellectual property; the creditworthiness of our
customers; our ability to raise capital and obtain non-recourse financing for
our transactions; our ability to realize our investment in leased equipment; our
ability to reserve adequately for credit losses; fluctuations in our operating
results; our reliance on our management team; and other risks or uncertainties
detailed in our Securities and Exchange Commission filings.
Contact: Kleyton Parkhurst, SVP
ePlus inc.
kparkhurst@eplus.com
703-984-8150