Business and Intellectual Property Update of Crossroads

Crossroads Systems, Inc. intends to appeal four adverse inter partes review (IPR) decisions from the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office which were issued on Friday, January 29, 2016.

The decisions relate to two of company’ patents (U.S. Patent Nos. 6,425,035 and 7,051,147) which cover technology firm considers fundamental to secure and efficient access to network storage systems. The company believes there were errors of both fact and law in the rulings, and that the PTAB came to erroneous conclusions on all of the adverse IPR decisions.

The company announced additional actions to increase shareholder value. These actions are subject to obtaining necessary approvals and firm can provide no assurance that any transaction will be consummated.

In the coming weeks, the company will work with its partner, Fortress Investment Group LLC, to explore near-term alternatives to monetize the 135 patents and pending patents that comprise the ‘non-972’ patent portfolio.

Company’s board of directors has also authorized management to explore strategic alternatives related to firm’ product business, including the possibility of partnerships or an outright sale of that business.

Richard K. Coleman, Jr., president and CEO, Crossroads, stated: “Crossroads’ intellectual property represents nearly two decades of work by our skilled and dedicated employees, and our shareholders deserve to be compensated for the use of our technology. We remain committed to making that happen and resolute in our belief that we will prevail.“