XOS, a leader in X-ray optics, components, and analyzers, filed a lawsuit against Innov-X Systems, Inc., a Massachusetts company. The suit is for breach of contract and patent correction. Innov-X and XOS entered into agreements relating to certain projects. Innov-X did not uphold its commitments set forth in these agreements and improperly used XOS technology. XOS was not listed on patents subsequently obtained by Innov-X, and suffered other damages from unauthorized use of XOS technology in Innov-X products.

In April 2011, Innov-X filed a counterclaim seeking damages against XOS. In response to an immediate motion made by XOS to dismiss this counterclaim, the Court agreed with XOS and dismissed Innov-X’s counterclaim against XOS in its entirety. XOS is now moving forward with its main claims against Innov-X.

One of the most important assets of a technology company is its intellectual property (IP). A company has a responsibility to its employees, shareholders, customers, and local community to take steps to protect and defend its IP.

Forming good agreements, acquiring patents, and keeping trade secrets are the first steps in a successful IP protection strategy – but sometimes they are not enough. Companies must be prepared to enforce their IP rights when necessary. Government entities normally do not provide direct IP enforcement – this responsibility is left to the Company itself. Failure to properly enforce IP not only leaves the immediate issues unresolved, it can encourage others to further encroach on the Company’s rights.

Taking actions of various types is standard procedure for successful technology companies – i.e., part of our business. XOS is prepared to litigate when necessary; and has done so before with excellent results.

The Company will not comment further on any specifics of this pending litigation. Inquiries of a more general nature can be directed to the Company’s litigation counsel, Nick Mesiti of Heslin, Rothenberg, Farley and Mesiti (518) 452-5600.

About XOS

XOS is a leading manufacturer of X-ray optics, components, and analyzers serving equipment manufacturers and users in energy, consumer safety, and other industries. The Company was founded in 1990 and is headquartered in East Greenbush, N.Y., near Albany. www.xos.com