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Modavox, Inc. (MDVX.OB) Announces Filing of Patent Infringement Lawsuit Against Yahoo! Inc. (YHOO)

Modavox, Inc., an Internet broadcasting pioneer and holder of several patented technologies, yesterday filed a Complaint in the United States District Court for the Northern District of California, asserting two Causes of Action against Yahoo! for Patent Infringement related to Modavox-owned 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 Web Page”). Modavox’s Complaint specifically asserts that Yahoo! has operated a business for profit that uses Modavox’s technology claimed and described in the ‘691 and ‘636 Patents without having sought or received Modavox’s authorization to use its patented technology.

Nathaniel T. Bradley, Chief Technology & Product Officer at Modavox, commented, “Our patented technology is foundational to a specific targeted Internet advertising delivery method utilized by the Yahoo! Advertising business and used previously by the targeted advertising delivery operation of Blue Lithium, purchased by Yahoo! in September, 2007. Third party expert analysis of Yahoo!’s systems, as well as our own internal studies, provide a substantial basis for our infringement contentions.”

David Shaub of Shaub and Williams LLP, Modavox’s lead counsel in the case, added, “The action has been filed after an extended investigation of the claims.”

Modavox’s Complaint claims that the company has suffered irreversible harm as a result of the alleged infringement and therefore seeks preliminary and permanent injunctions against Yahoo! to prevent the internet company from making, using, selling and offering for sale any products or services which infringe the ‘691 or ‘636 Patents, or otherwise inducing or contributing to the alleged infringement.

According to the press release, Modavox also seeks monetary damages in an amount to be determined at trial to compensate Modavox for Yahoo!’s alleged infringement, as well as a finding that Yahoo!’s infringement was willful and deliberate, which could entitle Modavox to as much as three-times actual damages. The company also seeks attorneys’ fees and Court costs, as well as any other remedies that the Court deems equitable and just.

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