Datalogic Scanning Brings Another Lawsuit Against Metrologic - Datalogic Alleges Trade Secret Misappropriation

Datalogic Scanning, Inc. announces that in August 2008 it commenced a lawsuit against Metrologic Instruments, Inc., a subsidiary of Honeywell International, in the United States District Court for the District of Oregon located in Eugene, Oregon, in which Datalogic alleges that Metrologic misappropriated trade secrets belonging to Datalogic. Datalogic’s lawsuit follows a patent infringement suit filed against Metrologic in the U.S. just over two years ago, and a related patent infringement suit filed in Germany.
FOR IMMEDIATE RELEASE Datalogic Scanning Brings Another Lawsuit against Metrologic Datalogic Alleges Trade Secret Misappropriation Eugene, OR, November 6, 2008 – Datalogic Scanning, Inc. announces that in August 2008 it commenced a lawsuit against Metrologic Instruments, Inc., a subsidiary of Honeywell International, in the United States District Court for the District of Oregon located in Eugene, Oregon, in which Datalogic alleges that Metrologic misappropriated trade secrets belonging to Datalogic. Datalogic’s lawsuit follows a patent infringement suit filed against Metrologic in the U.S. just over two years ago, and a related patent infringement suit filed in Germany. The U.S. suit, also pending in Eugene, Oregon, is directed to Metrologic’s infringement of two of Datalogic's patents, U.S. 6,974,084 and U.S. 6,991,169, as a result of Metrologic’s manufacture and sale of its Stratos® bi-optic scanners. Proceedings in the patent suit had been stayed by the U.S. District Court pending the outcome of a binding patent reexamination proceeding initiated by Metrologic in the U.S. Patent and Trademark Office, but the Court has now given Datalogic leave to file a motion for a preliminary injunction enjoining Metrologic’s continuing infringement while the reexamination is pending. Datalogic’s affiliate, Datalogic Scanning GmbH, also filed a parallel German patent infringement suit against the Metrologic German affiliate, alleging infringement of Datalogic’s related German patent rights. That case has been stayed pending the outcome of a patent validity challenge by Metrologic in Germany. Datalogic’s trade secret lawsuit alleges that Metrologic wrongfully and knowingly possessed and used confidential information, belonging to Datalogic, relating to costs, and margins, as well as competitive positioning and sensitive information respecting customers for bioptic, single plane, and other classes of scanners sold by Datalogic. Datalogic alleges that having access to this valuable information, obtained through an individual formerly employed within Datalogic's corporate family and then subsequently Metrologic's, gave Metrologic an unfair advantage in developing, pricing, and positioning its competitive products. The lawsuit seeks the full relief allowed under the Oregon Trade Secret Statute, including an injunction prohibiting the further use of Datalogic’s confidential information, the return of all Datalogic confidential information in Metrologic’s possession, damages sufficient to compensate Datalogic for harm suffered, punitive damages, and attorneys fees. Metrologic was acquired effective July 2, 2008 by Honeywell International, a $38 billion diversified technology and manufacturing entity and is now part of Honeywell’s Imaging and Mobility business unit. Bill Parnell, CEO for Datalogic Scanning, commented: “Going against Metrologic now that it is part of Honeywell makes Datalogic Scanning feel like David against Goliath. Nonetheless, Datalogic has a strong IP portfolio based on 35 years of history in developing core technology related to barcode scanning and protecting our Intellectual Property is key to maintaining our market position. We must rely on the U.S. federal court system to uphold our legal rights and provide justice." About Datalogic Scanning Datalogic Scanning, a division of the Datalogic Group, offers a broad array of bar code scanning technology, products, and services for the retail automation and automated data-capture markets. Datalogic Scanning serves the retail supply chain and distribution channel as well as the healthcare, manufacturing, transportation, logistics, government, banking and finance sectors. Headquartered in Eugene, Oregon, USA, Datalogic Scanning has a presence in over 120 countries through its extensive channel partner network, with sales and service offices located throughout the Americas, Europe, and the Asia-Pacific region. For more information, please visit www.scanning.datalogic.com, send an email to scanning@datalogic.com or call toll-free +1-800-695-5700 (in the US) or +1-541-683-5700. Datalogic is a registered trademark of Datalogic S.p.A. in many countries and the Datalogic logo is a trademark of Datalogic S.p.A. All other brand and product names may be trademarks of their respective companies. Contact: Marcy Edwards, Sr. Intellectual Property Counsel marcy.edwards@datalogic.com (541) 302-1123 ###