Crossroads Systems Announces Patent Litigation Update Including Results of Markman Hearing

AUSTIN, Texas, June 17, 2015 /PRNewswire/ -- Crossroads Systems, Inc. (NASDAQ: CRDS), a global provider of data storage solutions, today announced an update to its patent infringement litigation against defendants Oracle, NetApp, Cisco, Quantum, Dot Hill, and Huawei. Crossroads is seeking monetary damages for infringement of U.S. patents 6,425,035, 7,051,147, 7,934,041, and 7,987,311.

Yesterday, the Federal Court in the Western District of Texas entered an order in which the Court determined the meaning of 17 disputed claim terms in the patents-in-suit. The order was consistent with the Special Master's recommendation issued on February 23, 2015 and overruled the defendants' objections on almost all disputed claims terms. The Markman order also closely parallels the claim constructions in previous litigation. A Markman order is significant to a patent case because it provides clarity to a number of patent infringement and validity arguments and must be followed by a jury in deliberations.

This was the fourth time the Court has reviewed the meaning of the patent claims relating to Crossroads' '972 patent portfolio. Various patents in Crossroads' '972 access controls patent portfolio have been licensed to 51 companies over 14 years. Crossroads has received over $61 million in license fees and awards over that period.

In conjunction with the Markman Order, the Court also granted a motion to stay the cases until the Patent Trial and Appeal Board issues a final decision in the instituted inter partes reviews. The first decision is expected in January 2016.

"This is an extremely important and positive step in our litigation," said Richard K. Coleman, Jr., President and Chief Executive Officer at Crossroads Systems. "The judge's Markman ruling confirms our belief that the defendants are infringing our intellectual property and strengthens our resolve to recover the hundreds of millions of dollars we believe could be due our shareholders."

About Crossroads Systems 
Crossroads Systems, Inc. (NASDAQ: CRDS) is a global provider of data storage solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings. Founded in 1996 and headquartered in Austin, TX, Crossroads has been awarded more than 100 patents and has been honored with numerous industry awards for data archiving, storage and protection. Visit www.crossroads.com.

Important Cautions Regarding Forward-Looking Statements 
This press release includes forward-looking statements that relate to the business and expected future events or future performance of Crossroads Systems, Inc. and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about Crossroads Systems' ability to implement its business strategy, including the transition from a hardware storage company to a software solutions and services provider, its ability to expand its distribution channels, its ability to maintain or broaden relationships with existing distribution channels and strategic alliances and develop new industry relationships, the performance of third parties in its distribution channels and of its strategic alliances, the potential market for our data storage products, changes in the fair value of its derivative instruments and its ability to achieve or maintain profitability. The future performance of Crossroads Systems may be adversely affected by the following risks and uncertainties: uncertainties relating to product development and commercialization, uncertain market acceptance of Crossroads Systems products, including StrongBox, intense competition in the data protection and storage markets, variations in quarterly results and a consequence of unpredictable sales cycles and other factors, the ability to obtain, maintain or protect patent and other proprietary intellectual property rights, developments in litigation to which we may be a party, technological change in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion of these factors and risks, investors should review Crossroads Systems' reports on Form 10-K,  Form 10-Q,Form 8-K and other reports filed with the Securities and Exchange Commission, which can be accessed through the SEC's website or by clicking "SEC Filings" on the company's Investor Relations website at http://investors.crossroads.com. Forward-looking statements in this press release are based on management's beliefs and opinions at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement, and Crossroads Systems undertakes no duty to update this information to reflect future events, information or circumstances.

©2015 Crossroads Systems, Inc., Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All trademarks are the property of their respective owners. All specifications are subject to change without notice.                                                          

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SOURCE Crossroads Systems

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http://www.crossroads.com

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