Omni-ID Sues Xerafy and RFID TagSource

Tracy Gay, Omni-ID's marketing VP, declines to discuss the specifics of the suit, but says, "We're a company that's heavily invested in opening doors to bring technology to the next generation of RFID technology providers. However, we also have to be aggressive in defending our intellectual property."

In response to requests for comment, Xerafy e-mailed RFID Journal an official response from the company's founder and CEO, Dennis Khoo. "Xerafy respects the intellectual property of all companies, including its competitors...," Khoo said. "Xerafy has very broad patent protection itself, and therefore we take any allegations of infringement very seriously." He added, "Patent disputes are common in growth technology markets. We are not surprised by Omni-ID's actions, but we are disappointed. There have been aggressive patent litigation and licensing programs in the automated data collection industry before, and they have rarely if ever been beneficial for customers. Success in the market won’t come from the courtroom, but will come from focusing on meeting the needs of customers."

The company declined to provide further information regarding the specifics of the suit and what it might mean for its products, or its customers using those products, however, the company indicated, "On the advice of our attorneys, Xerafy will not comment on the merits of the suit at this time."

In a statement published in a Xerafy newsletter, Khoo said, "Omni-ID’s announcement came after we refused to join the technology licensing program discussed in their press release."

Typically, such lawsuit filings result in a negotiation of settlement, according to Sean O'Connor, a professor and the faculty director of law, business and entrepreneurship at the University of Washington School of Law. "The vast majority of these cases don't go all the way to litigation," he explains.

In a statement published in a Xerafy newsletter, however, Khoo said, "Omni-ID’s announcement came after we refused to join the technology licensing program discussed in their press release."

RFID TagSource says it no longer is selling Xerafy RFID tags. Its Web site, however, does sell on-metal tags made by Marubeni Chemix , Confidex and TROI.

LeclairRyan, the business law firm that filed the lawsuit on Omni-ID's behalf, did not immediately respond to a request for comment.