PHOENIX and NEW YORK, June 16, 2009 (GLOBE NEWSWIRE) -- Modavox, Inc. (OTCBB:MDVX), Internet broadcasting pioneer and holder of several patented technologies, today provided the following shareholder update.
The Company's 2009 fiscal year was highlighted by progress in validating its technology through investment, patent enforcement, development and adoption by its valued customers within the marketplace. The Company has now successfully packaged its technology within products and services that enable Internet television (IPTV), Internet radio broadcasting and advertising with the added ability to target, control and monetize interactive content while delivering it direct to consumers on any Internet connected device.
Modavox has made tremendous progress through extensive investment and management focus on the market recognition and value extraction related to our Internet Technology patent portfolio, "Method and System for Adding Function to a Webpage." Notably in 2009, the company increased the quality of representation and expert personnel supporting an aggressive and comprehensive patent strategy, while at the same time reducing overall legal costs related to expanded legal effort compensated for example, by our legal team's acceptance of equity compensation in lieu of cash payment. Also during 2009, the company's patents were evaluated by several third party experts skilled in the art and both legal and technical opinions, and the results consistently indicated that infringement is widespread and infringement damages are present in the primary Internet markets of ecommerce and online advertising.
In addition to continued progress with the patent strategy, Modavox initiated a comprehensive business growth strategy in 2009. The Company identified and secured key personnel and launched business tactics aimed at maximizing the value of the enterprise market opportunity for products and services founded upon the patent portfolio. The Company's Internet software products, BoomBox(r) Radio and BoomBox(r) Video, were developed to provide Broadcasting as a Service (BaaS). Both have been engineered specifically to harness the power of the Company's patented core technology.
BoomBox(r) Radio has been used by Modavox this past year to sustain and grow the largest Internet-based Talk Radio network through our owned and operated VoiceAmerica(r) Network that has been broadcasting Internet Talk uninterrupted since 1997. VoiceAmerica(r) development this past year focused upon creating more scalable business models and on the productizing of the BoomBox(r) Radio platform. BoomBox(r) Radio was enhanced through the acquisition of Radio Pilot's assets, integrated this past year and further advanced by sales to key strategic customers who launched complete radio operations of their own leveraging our complete broadcasting Internet software infrastructure. Unity.fm, for instance, is a Global talk radio network that provided product development, consumer data, and proof of concept in the replication of the BoomBox(r) Radio model that Modavox operates at VoiceAmerica(r) and World Talk Radio.
BoomBox(r) Video, our Internet TV (IPTV) solution, is the natural progression of the BoomBox(r) Radio product line, and was also a key investment and development area throughout 2009. Advanced Equities Corporation purchased BoomBox(r) Video 2.0 to support private corporate video communications. The New York Times Knowledge Network produced and delivered multiple Internet Pay-Per-View and live Internet events powered by BoomBox(r) Box Office which combines e-commerce with the Company's patented BoomBox(r) Video 2.0.
The Modavox Interactive Division invested in product development throughout 2009, completing the establishment of BaaS in a complete product line analogous to private corporate satellite networks of the past and the present capabilities of cable TV and terrestrial radio networks with the ability to localize content to consumers. Powering NBC, CBS, ABC, and FOX affiliates, BoomBox(r) has been used to deliver Internet broadcasts of network feeds from satellite remotes, high school sports stadiums, extreme weather alerts, and field reports to website visitors, often during hours outside the normal television broadcasting schedule. The company has beta tested its new BoomBox(r) Video 3.0 system in these enterprise-broadcasting environments having seen increasing traffic and adoption within community newspaper presence. These foundational relationships continue to validate our software at top tier broadcasting operations. The company is focused on development providing for the complete branding, distribution and control of global Internet TV and Radio operations.
On January 16, 2009, Modavox and New Aug, LLC, a Delaware limited liability company doing business as Augme Mobile, entered into a Plan of Reorganization and Stock Purchase Agreement pursuant to which Modavox will acquire up to 100% of the assets of Augme Mobile. The Closing Date for the transaction is scheduled to be on or before June 30, 2009.
On April 20, 2009, in anticipation of the closing of the Augme Mobile Acquisition and in order to expedite the integration into Modavox of Augme Mobile's business operations and to begin leveraging the combined businesses, Augme Mobile's Chief Marketing Officer, Mark Severini, was appointed Chief Executive Officer of Modavox. In conjunction with the closing of the Augme Mobile business acquisition, additional members of the Augme Mobile management team are expected to become officers of Modavox on or before June 30, 2009. Mr. David Ide, former Chief Executive Officer, took on the essential role of Chief Strategy Officer in order to develop key roadmaps to leverage future technology advancements and Intellectual Property.
Augme Mobile's integrated mobile marketing platform is being deployed to fulfill advertisers needs to offer interactive and targeted mobile content, while simultaneously satisfying consumers' desire for easier, more robust and more relevant mobile connectedness. Through the incorporation of Augme Mobile assets into Modavox, as facilitated by the Modavox Patents, Modavox will have a unique advertising product in the evolving mobile-consumer advertising market. Importantly, Augme Mobile has already negotiated service agreements with a number of Fortune 500 companies. The strategy is to cross-pollinate the Modavox/Augme Mobile client bases and respective products and services.
During 2009, Stream Syndicate, the Company's stand alone advertising platform, was enhanced through further adoption within client accounts such as Gannett, Village Voice, West Virginia Media, South Dakota News Network, and ABC Disney's Toledo affiliate. It was also utilized by KFC in a national targeted advertising campaign for our customer Lion New Media. The Company made strategic updates to the underlying targeting technologies and have achieved and sustained unique visits in excess of 15 million to Stream Syndicate powered advertising destinations. The Company's effort in 2009 was to prove out its targeting and reporting, while creating Stream Syndicate core technology blueprints for future product development. Geographic targeting is one area where the Company has a 2010 strategic plan to complete an upgrade and commercialization and automation of the Stream Syndicate's publishing system. The Stream Syndicate's integration into its VoiceAmerica(r) and World Talk Radio Networks within its BoomBox(r) Radio platform has supported and promoted several Internet Talk Radio shows and allowed the Company to cross-pollinate Interactive pay-per-view projects in a targeted fashion.
The Company is continuing to rigorously pursue infringement violations of its patents. In 2007, Modavox filed an infringement lawsuit against behavioral targeting ad company Tacoda, which was purchased by AOL in August 2007 for $275 million. During the current fiscal year, Modavox also filed actions against AOL, Time Warner and Platform A. In the Tacoda case, the initial Markman ruling was viewed very favorably by the company and only a final ruling on the word "Functionality" remains. Our legal team and experts are in the process of completing the final analysis of Tacoda's systems and software and completion of Modavox's infringement contentions. In conjunction with this effort, our organization has focused on assessment of additional infringers within established markets of Internet Ecommerce and Advertising. In addition, the company has developed criteria and process around the identification of Internet operations that are symptomatic of infringement within emerging Internet technology systems including mobile, Internet gaming and other geographic targeting operations.
On April 28th of 2009, the Company sent a Cease and Desist letter to Yahoo's Chief Executive Officer, Carol Bartz, related to their subsidiary company Blue Lithium and its Behavioral Targeting Solution. On May 5, 2009, Modavox's counsel was contacted by house counsel for Yahoo, who requested the opportunity to respond to the letter and discuss this matter with Modavox's counsel after her return from prior scheduled litigation and calendared commitments away from the office. Based on that conversation and a subsequent one, Modavox's counsel granted an extension to Yahoo until the end of the first week of July 2009. Modavox's counsel expects from the conversation and extension request to have substantive discussions with Yahoo's counsel upon her return.
A more detailed analysis of the status of these actions is described in the legal proceedings section of the company's 10-K filed with the Securities and Exchange Commission.
Mark Severini, Modavox Chief Executive Officer, stated, "Looking forward to our 2010 fiscal year, we are diligently focused on bringing our technology to top consumer product companies and broadcasting operations. We are also for the first time looking to provide broadcasting as a service to our customers. Events of all types, whether training & learning, corporate, marketing, and direct to consumer communications are becoming more sustainable, profitable, and literally extended with greater targeted reach enabled by our mobile and Internet technologies.
"We have now successfully validated our technology, increased market awareness and furthered software product development which we expect to support a more robust revenue model for 2010, one that is more scalable with both Internet and mobile revenue centers now in-house. Thankful for our team's efforts in 2009, we are building upon a strong foundation with a company wide focus on larger enterprise products with higher yields and the expansion of Modavox revenue categories and market scale. Complimented by a new management team and an enhanced board, we remain dedicated to the further creation of shareholder value through a carefully and thoroughly executed patent strategy along with an aggressive business growth strategy that fully leverages the practical application and value of our patent portfolio."
Nathaniel Bradley, Modavox Chief Technology and Product Officer, stated, "We are progressing our complete patent portfolio monetization strategy through an infusion of new experienced and talented personnel. Our comprehensive planning and subsequent and continual execution is expanding our patent enforcement efforts in step with our collective resources. Currently, we are completing the assessment of the size and scope of the enterprise market opportunity created by our patented technology holdings. Clearly mobile applications that we've begun to integrate into Modavox systems, with recent collaboration with Augme Mobile, and newly emerging Internet communities using consumer targeting such as Internet gaming, will merit a further focused effort and assessment in addition to the infringement analysis we've developed in targeted advertising delivery, and ecommerce market segments."
About Modavox
Modavox, Inc., the customized communications company, is a pioneer in Internet broadcasting, producing and syndicating online audio and video, offering innovative, effective, and comprehensive online tools for reaching targeted niche communities worldwide. Through patented Modavox technology, Modavox delivers content straight to desktops and Internet-enabled devices. Modavox provides managed access for live and on-demand Internet radio broadcasting, e-learning and rich media advertising. For more information, please visit www.modavox.com.
Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties that could cause Modavox's actual results to differ materially from those currently anticipated, including the risk factors identified in Modavox's most recent 10-K filing and subsequent 10-Q filings as well as other filings with the Securities and Exchange Commission.