LOS ANGELES, Calif. – December 10, 2021 – On December 8, 2021, a jury determined that GuestTek breached its License Agreement with Nomadix by failing to pay Nomadix royalties it owed for licensing Nomadix’s patented technology. The jury awarded Nomadix $6.5 million in damages. The jury’s verdict resolves a breach-of-contract lawsuit Nomadix filed in 2016 in federal court. The parties’ License Agreement dates back to 2010 and was part of the parties’ settlement of a 2009 patent-infringement lawsuit Nomadix brought against GuestTek. In the trial on Nomadix’s breach claim, GuestTek sought to invalidate Nomadix’s patents, but that effort failed when the jury also determined that GuestTek’s validity challenges constituted yet another breach of the License Agreement.
“The highlight from the trial for me was when Nomadix founder and internet pioneer, Dr. Leonard Kleinrock, took the stand and told the story of the company’s founding and the early innovation created by the Nomadix team,” said Mark Khandjian, chief financial officer at Nomadix. “We are pleased with the jury’s verdict recognizing that GuestTek failed to uphold its end of the bargain under the License Agreement and making GuestTek accountable for its breaches.”
This is the second time GuestTek has been held to have breached the License Agreement. In September of this year, the United States Court of Appeals for the Ninth Circuit affirmed an April 2020 judgment that GuestTek had breached the License Agreement by challenging Nomadix’s patents before the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office. Before the Ninth Circuit’s affirmance, GuestTek had initiated seven separate proceedings at the PTAB to challenge Nomadix’s patents; none of Nomadix’s patents were invalidated.
With more than 25 years of experience, Nomadix enables over 5 million daily internet connections in over 150 countries. With a global reputation for unparalleled reliability and ease of management, its patented gateways are the industry standard in hospitality, used by tens of thousands of properties and supporting millions of rooms worldwide. The company provides hotel and property owners, brands, property management groups and managed service providers (MSPs) with a suite of solutions that will enhance the guest and tenant experience, today and into the future. From in-room entertainment with TV casting, to secure Wi-Fi, to in-room voice assistants, to a PBX phone service – travelers can feel at home wherever they go. For more information, visit nomadix.com.
Director of Marketing