NEW YORK, June 13, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- PeerStream, Inc. (“PeerStream,” the “Company,” “we,” “our” or “us”) (OTCQB: PEER), a communications software innovator developing enhanced security and privacy solutions for video, voice, and text applications and data transmission, today announced that yesterday the Company filed an appeal in Federal Circuit Court of the recent unfavorable ruling by the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office that rejected the validity of U.S. Patent Nos. 5,822,523 and 6,226,686. These two patents were cited in PeerStream’s infringement lawsuit against Riot Games, Inc. and Valve Corporation. The Company has engaged the law firm Armond Wilson LLP, an expert in patent litigation, to pursue the appeal.
“We are disappointed with the PTAB’s decision and continue to believe that the patents previously awarded to PeerStream are valid, and that previous rulings and licensing agreements accurately reflect the value of their contribution to technology innovation. The two patents in question, Nos. 5,822,523 and 6,226,686, were previously challenged and ultimately upheld, and we believe that on appeal they will continue to be upheld,” said Jason Katz, founder and Chairman of PeerStream.
These two patents have a history of successfully holding up to scrutiny and yielding licensing revenue. They were first challenged during litigation in 2010, when a reexamination proceeding was instituted against them. This action resulted in both patents being reaffirmed as valid patents and numerous additional claims were added to the patents as well. These patents were then licensed to Microsoft, Sony, and Activision.
The current litigation was initiated on December 16, 2016, when Paltalk Holdings, Inc. (“Paltalk”), a wholly owned subsidiary of the Company, filed a patent infringement lawsuit against Riot Games, Inc. and Valve Corporation for infringement of U.S. Patent Nos. 5,822,523 and 6,226,686 with respect to their online games League of Legends and Defense of the Ancients 2. On November 2, 2017, Riot Games, Inc. filed a total of four (two per patent held by Paltalk) petitions for inter partes review (“IPR”), which is a trial proceeding conducted by the PTAB, seeking to have the Paltalk patents declared invalid. On May 15, 2018, the IPR was instituted, and on February 13, 2019, the PTAB held a hearing on the matter. A determination was made by the Board as to the validity of the patents on May 14, 2019.
About PeerStream, Inc. (OTCQB: PEER)
PeerStream is a communications software innovator developing enhanced security and privacy solutions for video, voice, and text applications and data transmission. Our offerings target consumer, government and enterprise clients. Using multi-layered encryption, blockchain technology and other recent innovations, we are developing our proprietary PeerStream Protocol (“PSP”) to offer clients maximal data security and confidentiality over distributed or decentralized networks. We also recently launched our Backchannel product suite in private beta, which includes cross platform applications, middleware and software development kits designed to offer a highly secure end user communication experience when coupled with PSP. For 20 years, we have built and continue to operate innovative consumer applications, including Paltalk and Camfrog, two of the largest live video social communities. The Company has a long history of technology innovation and holds 26 patents.
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Forward-Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties related to our increasing focus on the use of new and novel technologies, such as blockchain, to enhance our applications, and our ability to timely complete development of applications using new technologies; our ability to effectively market and generate revenue from our new business solutions unit; development and acceptance of blockchain technologies and the continuing growth of the blockchain industry; legal and regulatory requirements related to the use of blockchain, us investing in cryptocurrencies and accepting cryptocurrencies as a method of payment for our services, the use of the internet and privacy and protection of user data; risks related to our holdings of XPX tokens, including risks related to the volatility of the trading price of the XPX tokens and our ability to convert XPX tokens into fiat currency; and our ability to manage our partnerships and strategic alliances, including the ability of our partners to satisfy their obligations under these arrangements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov.
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