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GreenShift Provides Litigation Update; Infringement Not Denied by Cardinal and ICM
Friday, April 23, 2010
New York, NY -- GreenShift Corporation (OTC Bulletin Board: GERS) today provided the following update regarding infringement of GreenShift’s patented technologies for recovering corn oil and improving the energy efficiency and profitability of corn ethanol plants:
Infringement Was Not Denied
In its most recent pleading, prepared and filed by ICM on Cardinal Ethanol’s behalf, Cardinal doesn’t deny that its ICM-designed corn oil extraction system is infringing GreenShift’s patent claims.
ICM’s Claims Were Rejected
Cardinal and ICM appear to rely solely on the hope that the court will invalidate GreenShift’s patents based entirely on information considered and rejected by the U.S. Patent and Trademark Office (the “PTO”) prior to the issuance of GreenShift’s patents. GreenShift believes that this argument is especially weak and that it must fail. Cardinal and ICM argue that GreenShift’s inventions were obvious and unpatentable. That is simply not the case. ICM previously raised the information that it believed invalidated GreenShift’s invention and failed – the PTO considered and rejected the materials raised by ICM prior to the issuance of GreenShift’s first two patents in October 2009. Any producer that relies upon ICM’s continued claims of invalidity does so at its own peril.
Royalties Are Accruing
GreenShift has a statutory right to reasonable royalties for every pound of corn oil extracted with GreenShift’s technologies beginning as early as February 23, 2006, the publication date of GreenShift’s first patent.
Do Your Due Diligence
Beware of offers of indemnification for infringing use of GreenShift’s technologies in connection with the sale of equipment for corn oil extraction. Any judgment that GreenShift obtains for infringement will be enforceable against the ethanol producer violating GreenShift’s patents. Ethanol producers are cautioned to fully investigate the facts and applicable patent laws as they relate to the viability of any indemnity, particularly under circumstances where the indemnitor’s exposure is multiplied by the number of indemnified producers and the ongoing infringement of each.
“We are disappointed that litigation is necessary, particularly given the strength of our patents, but we must and will take action to defend against all infringing use of our technologies,” said David Winsness, GreenShift’s Chief Technology Officer. “There can be no disputing the fact that corn oil extraction technology adds tremendous value to the industry – much more so than any other added technology in the history of the industry. And, there can be no argument that GreenShift invented and brought corn oil extraction technology to the industry. Just as an ethanol producer or farmer invests many millions and years of hard work into a facility or farm, we have invested many millions and years of hard work into our patents; and, just as an ethanol producer expects payment for its ethanol or a farmer expects payment for his or her corn, we expect reasonable payment for all use of our technologies.”
Winsness concluded: “We would rather exclusively commit our focus and resources to facilitating additional value creation for the industry by supporting new use of our technologies and by providing existing producers with win-win technical and yield enhancement services. EBITDA is in short supply and risks are high. By enhancing profitability, our patented technologies can provide ethanol producers with a safe harbor in stormy commodity weather and a significant cost advantage. We intend to continue to build on our hard work, ingenuity and invested capital to deliver these advantages to as many producers as possible, as quickly as possible.”
GreenShift’s and Cardinal’s briefs and arguments are available online at www.greenshift.com.
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GERS) develops and commercializes clean technologies designed to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing the generation of wastes and emissions.
GreenShift’s mission is to build shareholder value by using its technologies to catalyze disruptive environmental gain. GreenShift believes that the first, best and most cost-effective way to achieve this is to develop technology-driven economic incentives that motivate large populations of people and companies to make incremental environmental contributions that are collectively very significant. With adoption by most of the U.S. ethanol industry, GreenShift’s commercially available technologies can give way to disruptive gains by enabling sustainably increased production of globally-meaningful quantities of renewable fuels for distribution through existing supply chains.
GreenShift also maintains its strong commitment to continued innovation and has many additional patents pending for its Backend Fractionation™ portfolio of strategically compatible cleantech designed to continue driving the corn ethanol industry into increased sustainability and global competitiveness.
Additional information on GreenShift and its technologies is available online at www.greenshift.com.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
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