PADCOM AUGMENTS SUIT AGAINST NETMOTION

With business opportunities in the red-hot inter-modal wireless roaming sector at stake, roaming software developer Padcom has amended its six-month-old lawsuit against fellow software provider NetMotion Wireless with new allegations, as the lawsuit inches closer to a potential trial date in the U.S. District Court for the District of Delaware.

Padcom augmented its original complaint with “a number of additional causes of action,” including unfair and deceptive trade practices, trademark infringement and tortious interference, said Richard Reed, general counsel at Padcom. Among the new accusations, Padom alleges NetMotion used Padcom's name in a way that allowed anyone conducting a Google search for “Padcom” to see NetMotion's Web site as a sponsored link among the results.

The Bethlehem, Penn., company originally filed its lawsuit against Seattle-based NetMotion Wireless on Oct. 27, 2003, and at that time accused NetMotion of infringing on two of its patents related to wireless roaming technology, as well as interference in ongoing business negotiations between Padcom and AT&T Wireless. The lawsuit also targeted Database Solutions, a NetMotion reseller that allegedly had been selling products based on the patents in question.

NetMotion, which ended up winning a contract from AT&T Wireless, followed that lawsuit with its own suit accusing Padcom of tortious interference. Padcom's newly amended complaint further seeks a declaratory judgment that Padcom has not interfered with NetMotion's business dealings. In a separate filing, Padcom also filed a notice of dismissal, voluntarily dismissing Database Solutions from the action, without prejudice, because Padcom said it found the reseller actually had not licensed or sold any of the accused products on behalf of NetMotion.

NetMotion wouldn't comment on Padcom's latest actions, though Aaron Burnett, senior director of marketing at NetMotion Wireless said, “It's part of a continuing effort by Padcom to disrupt our continuing customer wins. We have over 400 customer wins, and we won't let this lawsuit disrupt our progress.”

Padcom's patents and technology so far have been used for products serving primarily the public safety and utility industries, but Charles Cleary, president and CEO of Padcom, acknowledged that the potential market is broadening rapidly as wireless network operators more aggressively pursue roaming strategies.

“We have seen more activity in this area,” he said. “We have spent a number of years educating the market about wireless roaming, and now we are seeing a light go on.” Padcom also has gained a partnership with Motorola that will help it to market its software.

Cleary also said the increased market activity has boosted the likelihood that other companies are infringing on Padcom's patents. “We've started looking for other instances [of infringement], though it depends on what they mean by ‘roaming,” he said. “Do they mean logging off and into different networks, or seamless roaming between dissimilar networks?”

Padcom received the two patents in question in 2001 and 2002. The first is described as “Apparatus and Method for Transparent Wireless Communication Between a Remote Device and a Host System,” and the second is detailed as “Apparatus and Method for Intelligent Routing of Data Between a Remote Device and a Host System.” NetMotion has its own patent, titled, “Method and Apparatus for Providing Mobile and Other Intermittent Connectivity in a Computing Environment.”