Augme Technologies Provides Patent Litigation Update

Augme Licensing Program Moving Forward on All Fronts

Marketwired

NEW YORK, NY--(Marketwire -08/16/12)- Augme Technologies, Inc. (AUGT), ("Augme") or (the "Company") a technology and services leader in interactive media and mobile marketing, today released the following update on the Company's on-going patent enforcement activities, including its seven federal lawsuits involving four of the Company's issued United States patents.

Augme Technologies vs. Yahoo!

On August 9, 2012 Hon. Magistrate Judge Joseph Spero granted Yahoo!'s motion for summary judgment. The decision concludes the district court phase of this litigation and involves only United States Patent Nos. 6,594,691 and 7,269,636. The suit had accused specific Yahoo! targeted advertising systems of infringement. The Court found, given the evidence presented, that the accused Yahoo! systems could not be found to infringe under the Court's interpretation of Augme's claims. The Court did not rule on invalidity issues raised by Yahoo!

Augme's Chief Executive Officer, Paul Arena said, "We continue to believe Yahoo!'s activities and products infringe the patents asserted against it as well as other patents in our portfolio not yet asserted against them. The final chapter on Augme's dispute with Yahoo! has yet to be written."

Augme continues to maintain that Yahoo!'s targeted marketing systems use Augme's patented technology and constitutes an infringement of its patent portfolio that the Company will ultimately resolve through licensing or litigation. The Company is considering an appeal to the Court of Appeals for the Federal Circuit in Washington, DC, the highest patent court, of the summary judgment ruling by U.S. District Court. Augme also is exploring opportunities in conjunction with third party licensing partners to move its licensing program forward.

Augme vs. Tacoda & AOL

Augme intends to terminate its case against AOL and Tacoda which is directly related to the Tacoda system as acquired by AOL but only as used prior to AOL's integration of that system into its own operations. On May 31, 2012, the court in the Tacoda case had denied AOL and Tacoda's motion for summary judgment holding that Augme could prove infringement of certain limitations under the doctrine of equivalents. Later, on August 2, 2012, Judge Colleen McMahon ruled that this case was limited to Tacoda operations prior to their integration into AOL's operations. As a result of this ruling, the recovery available to Augme in this case was negligible compared to the expense involved and no prospective injunctive relief was available. Accordingly, in order not to waste the time of the court or the parties, Augme intends to terminate the case and allow for the expeditious pursuit of the other litigations against AOL.

A second and separate case filed against AOL in 2009 is now proceeding in the U.S. District Court of New York and also includes United States Patent No. 6,594,691, "Method and System for Adding Function to a Web Page," and United States Patent No. 7,269,636, "Method and Code Module for Adding Function to a Webpage" is being asserted against AOL, Time Warner and Platform-A. The complaint also includes a claim against AOL for trademark infringement, unfair competition and false designation of origin in connection with AOL's use of THE BOOMBOX designation located at their portal website www.theboombox.com, which is alleged to be confusingly similar to Augme's registered trademark BOOMBOX RADIO® and BOOMBOX®.

A third case against AOL, Inc. was originally filed in 2011 in the U.S. District Court for the Eastern District of Virginia, seeking damages relating to the alleged infringement of additional patents owned by Augme, U.S. Patent Nos. 7,783,721 ("Method and Code Module For Adding Function to a Web Page") and 7,831,690 ("Appliance Metaphor For Adding Media Function To A Web Page"). On July 26, 2011 the case was moved to the U.S. District Court for the Southern District of New York. This case remains pending.

In both these pending cases Augme is seeking injunctive relief and has unspecified damages stemming from the alleged infringing activities.

Augme vs. Pandora

Litigation was brought against Pandora for infringement of U.S. Patent No. 7,831,690, ("Appliance Metaphor for adding Media Function to a Webpage") on April 29, 2011. The discovery process in this case has been complete. A Markman Hearing has been held and the parties await the issuance of a Markman Order.

Augme vs. Velti

Augme brought litigation against Velti, a global provider of mobile marketing and advertising technology on March 9, 2012 in the District of Delaware for infringement of U.S. Patent Nos. 6,594,691; 7,269,636 and 7,783,721. The parties recently submitted a schedule and a trial date is expected to be set soon.

Augme vs. Millennial Media

On April 5, 2012, Augme brought a case against Millennial Media, a provider of mobile marketing and advertising services for infringement of U.S. Patent Nos. 6,594,691; 7,269,636 and 7,783,721. The parties recently submitted a proposed schedule and a trial date is expected to be set shortly.

On August 9, 2012, Millennial Media reported revenue from existing customers up 118% year over year and that brand advertising made up 60% of its revenue. While only 12% of revenue was from international sales. Sales & Marketing spend increased 67% year over year due to a 70% increase in the size of the sales team. A raised forecast is due from better than expected response in Asia-Pac market and North America. We believe Augme's potential damages are increasing and that Millennial's need of license of the Augme technology is now paramount to Millennial's forward operations.

Mr. Arena continued, "We have every confidence that our opportunity to win damages in the Yahoo! case is not lost, but merely delayed while our position to take the matter to court is vindicated through the appeal process. Regarding the AOL matters, the court has taken us down a path that is not worth pursuing against Tacoda. Rather, we have every confidence that there is a potential for a higher monetary recovery from the other AOL cases involving Time Warner and Gannett."

Augme's industry-leading patent portfolio includes 13 issued patents, one notice of allowance, and over 80 pending patents in the U.S. and internationally, with over 2,000 claims covering technology, media and telecommunications ('TMT') space.

About Augme Technologies, Inc.

Augme® Technologies, Inc. (AUGT) provides strategic services and mobile marketing technology to leading consumer and healthcare brands. Selling its products and services under the Hipcricket brand, Augme's platform has provided measurable successes across an industry-leading 200,000+ campaigns for its clients, which include many of America's brand-name leaders (e.g., Macy's, MillerCoors, Nestle, Clear Channel) in a variety of industries, along with their agencies.

Augme's offerings allow marketers, brands, and agencies to plan, create, test, deploy, and track mobile marketing programs across every mobile channel, including SMS, MMS, 2D/QR codes, mobile websites, advertising networks, social media and branded apps. Augme's AD LIFE® platform facilitates consumer brand interaction and the ability to track and analyze campaign results. Using its own patented device-detection and proprietary mobile content adaptation software, AD LIFE® solves the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering. Augme also provides business-to-consumer solutions, including national mobile couponing campaigns, strategic mobile healthcare tools, custom mobile application development, and consumer data tracking and analytics. In addition to AD LIFE®, Augme in 2011 acquired the assets of Hipcricket, Inc. and JAGTAG, Inc. and licenses the digital broadcast platform BOOMBOX®. The Company's industry-leading patent portfolio includes 13 issued patents and over 80 pending patents in the U.S. and internationally with over 2,000 claims in the Technology, Media and Telecommunications ('TMT') space. Augme is headquartered in New York City, with operations in Seattle, Atlanta, Dallas, Los Angeles, San Francisco, Chicago, Miami and Tucson. For more information visit www.augme.com or www.hipcricket.com.

Augme Technologies™, Hipcricket®, Augme®, AD LIFE®, BOOMBOX®, AD SERVE® and the Augme logo are trademarks of Augme Technologies, Inc. All rights reserved. 2009-12.

Forward-Looking Statements

This release includes forward-looking statements. All statements regarding our expected future financial position, including management's revenue guidance, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in Augme's Form 10-K for the year ended February 29, 2012 and more recent reports and registration statements filed with the SEC. Augme Technologies, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter such forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Investor Relations
Stephanie Prince / Jody Burfening
Lippert/Heilshorn & Associates, Inc.
(212) 838-3777
sprince@lhai.com or ir@augme.com
IP Communications
Bruce Berman
Brody Berman Associates
(212) 683-8125
bberman@brodyberman.com

View Comments