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Standard Innovation Addresses Lelo Patent Dispute With Open Letter

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Apr 18, 2013 7:30 AM PDT    Text size: 

OTTOWA, Ontario — Standard Innovation has issued an open letter to its partners regarding the patent dispute with Lelo. It reads in its entirety:

“Standard Innovation highly values the relationships that we’ve built with our global partners in this industry. We act and communicate with integrity,
fairness and honesty and have done so since day one. These values are built into the DNA of this company. So it deeply disturbs me to learn that Lelo Inc.
has drawn you — our valued partners — into its lawsuit against us.

This is what we know: Lelo alleges that a component of the We-Vibe® 3 charging mechanism infringes a Lelo-owned U.S. patent. Lelo did not invent the charging
mechanism technology, nor does it use it in its current product line — it recently purchased a patent, allegedly covering the technology, from a third
party. We believe that this is a clear case of patent trolling, wherein a company purchases someone else’s patent and then looks for companies that
potentially infringe and threatens them with legal action. It is disappointing when companies choose this path. We see this lawsuit as a retaliatory act by
Lelo for suits we have filed against it to protect our We-Vibe® products.

I won’t let the strong We-Vibe® brand be tarnished by these allegations. This is a distraction created by Lelo on the heels of the initial determination made
by Judge Thomas Pender for the United States International Trade Commission finding that certain Lelo products, including the Tiani, Tiani 2 and Mahana,
infringe more than 60 claims of Standard Innovation’s U.S. patent. The ITC is currently scheduled to deliver its final determination on June 7, 2013. I am
confident that the ITC will uphold Judge Pender’s initial determination that the We-Vibe® patent is valid and infringed by Lelo.

What can we do? We ask you to continue with your business as usual while we work with our legal experts. If you have received a threatening letter but have
not contacted us, we ask that you do so immediately at legal@standardinnovation.com.

It is not enough to say that we are deeply concerned that some of you have received letters threatening legal action by Lelo. This dispute is between Lelo
and Standard Innovation Corporation. We stand behind our innovative We-Vibe® products and we stand with you, our dedicated and loyal partners. Standard
Innovation will continue to do what it does best — invent and innovate in the sexual health and wellness industry.”

Sincerely,

Danny Osadca

Chairman and CEO

Standard Innovation® Corporation

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