SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 24, 2002
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(Date of Report)
CAPTARIS, INC.
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(Exact Name of Registrant as Specified in Charter)
Washington 0-25186 91-1190085
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(State or Other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation) Identification No.)
11410 NE 122nd Way, Kirkland, Washington 98034
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(Address of Principal Executive Offices, including Zip Code)
(425) 820-6000
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On April 10, 2002, Captaris, Inc. entered into a nonexclusive license
agreement with AudioFAX IP LLC, settling a patent infringement suit filed by
AudioFAX in November 30, 2001. As reported in Captaris' Annual Report on Form
10-K for the year ended December 31, 2001, the lawsuit was filed against
Captaris in the United States District Court for the Northern District of
Georgia claiming ownership of three United States patents and asserting that
Captaris was infringing these patents as a result of its sale of certain
enhanced facsimile products. The suit requested unspecified damages, treble
damages due to willful infringement, and preliminary and permanent injunctive
relief. On January 17, 2002, Captaris filed an answer denying liability, and a
counterclaim seeking a declaratory judgment that the patents are invalid and not
infringed.
Captaris paid a one-time fee to license the technology until the patents
expire in 2008 and 2011. In the first quarter of 2002, Captaris recorded a
charge of $875,000, reflecting the portion of the license fee that relates to
prior years. The balance of the license fee, the amount of which is
confidential, is being capitalized over the remaining life of the patents and is
not expected to be material to Captaris' results of operations beyond the first
quarter.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CAPTARIS, INC.
Dated: April 24, 2002 By: /s/ Jeffrey B. deCillia
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Jeffrey B. deCillia
Senior Vice President, Chief Financial
Officer and Secretary