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Contingencies
9 Months Ended
Sep. 30, 2012
Contingencies [Abstract]  
Contingencies

(10) Contingencies

 

The Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of  business, including proceedings relating to product liability, intellectual property, safety and health, employment and other matters. Such matters are subject to many uncertainties and outcomes are not predictable. The Company does not believe however, that at the current time any of these matters constitute material pending legal proceedings that will have a material adverse effect on the financial position or future results of operations of the Company.

 

On June 25, 2012,  American Vehicular Sciences LLC (“AVS”) filed 4 patent infringement complaints in the United States District Court in the Eastern District of Texas, which names the Company and one of two of its customers as co-defendants.   In two of the complaints (#6:12-cv-00413 and #6:12-cv-00406), AVS alleges that the Company’s SmartBeam product infringes one patent owned by AVS.  In the other two complaints (#6:12-cv-00410 and #6:12-cv-00415), AVS alleges that the Company’s monitoring system products infringe two other patents owned by AVS.    The Company was served with the four complaints on July 27, 2012.  On October 5, 2012, the Company submitted its answers to all four complaints.  In its answers the Company denies infringement and contributing to and/or including others to infringe, and further denies that AVS is entitled to any relief.  In addition, the Company has provided affirmative defenses, including but not limited to non-infringement and invalidity, of the claims underlying the AVS allegations.  The Company is uncertain of what impact, if any, the above claims may potentially have on its business.