Sequence Design Files Patent Infringement Complaints

Electronic News, August 20, 2001

FOLLOWING A FILING AGAINST AVANT! CORP., PRIVATELY HELD

Sequence Design Inc. has filed a similar legal complaint against Simplex Solutions Inc. alleging patent infringement against its extraction technology. The complaint, filed in the San Jose Division of the U.S. District Court for the Northern District of California, alleges that Sunnyvale, Calif.-based Simplex (nasdaq: SPLX) infringes on one or more of the claims in Santa Clara, Calif.-based Sequence's U.S. Patent No. 5,901,063. Sequence said its patented technology is incorporated into its ExtractionStage suite of EDA tools. Sequence said its complaint asks that Simplex be permanently enjoined from infringing on the '063 patent and requests that the court award damages. Sequence alleges Simplex has infringed on one or more claims in the patent by "making, using, offering to sell or selling products which embody the patented invention and which use the methods of the '063 Patent."

Simplex said Sequence first gave written notice of the alleged infringement in November. A complaint being filed therefore came as no surprise, a company spokeswoman said. "This has been in our risk factors, in our S-1 filings and our 10-Q filings," Simplex's spokeswoman said. "They did send us two letters so we've had ample time to look at the IP (intellectual property) involved and do our due diligence. We're convinced that we don't infringe."

Sequence was keen to point out IP licensing is just one aspect of its business model. A spokesman said the company continues to focus on developing innovative technologies. "We're not moving toward a sole IP licensing approach for our business," the spokesman said. "We're an enabler, and it will be a component, but it's not the sole focus."