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.

About Nomadix

Nomadix brings connected experiences to life. For over 25 years, Nomadix has been a trusted vendor to the world's largest brands, delivering powerful and personalized connectivity and digital engagement solutions designed with real people in mind. Providing the backbone of visitor-based networks and managed Wi-Fi to properties and venues of any size in over 150 countries, Nomadix enables companies to connect, manage and engage in ways that redefine their digital customer experiences, help them make better business decisions and increase customer lifetime value. For more information, visit nomadix.com.

Aubrey Coggins
Director of Marketing