Depobook Court Reporters & Stenographers

Livenote answers a few questions from court reporters and attorneys alike when they posted the following with regard to the Engate patents:

Q. Why did LiveNote acquire Engate?
A. LiveNote, a business within The Thomson Corporation, saw an opportunity to improve the use of realtime transcription software for court reporters and law firms. By adding hundreds of Engate patent claims to LiveNote’s portfolio, the acquisition of this valuable asset strengthens LiveNote’s position as the legal market’s leading provider of transcript and evidence management software, and enhances the company’s freedom to operate in serving the needs of this market.

Q. How will this acquisition affect the legal industry?
A. LiveNote can now make the realtime technologies represented by the Engate patent portfolio accessible to more law firms and court reporters without legal uncertainty or administrative inconvenience. Specifically, this acquisition enables users to convert from the token system employed today to a simple, flat-rate subscription model. It also underscores LiveNote’s commitment to developing the most innovative tools, as well as increasing efficiency and accuracy in the courtroom through advances in realtime
technology.

Q. Is this acquisition connected to the new Court of Appeals ruling on the Engate
patents?
A. No, this acquisition was strategically linked to the September 2006 acquisition of LiveNote by Thomson West, and was completed several weeks before the Court of Appeals handed down its decision.

Q. How will the latest Court of Appeals ruling on Engate patents affect LiveNote?
A. The December 26, 2006, Court of Appeals decision only clears up longstanding
inconveniences for customers — it does not change current business relationships. The decision merely affirms a lower court’s 2005 ruling invalidating a limited number of patent claims. There are hundreds of remaining claims in the existing Engate patents, along with a significant number of pending patent applications. These patents will enable LiveNote to continue its innovations in realtime technology and sustain the quality that court reporters and law firms demand and deserve.

Q. Does this ruling mean that the longstanding Engate v. Esquire/Atkinson-Baker
litigation is over?
A. Thomson West does not intend to continue the litigation that Engate had commenced against Esquire and Atkinson-Baker.

Q. Will there be more lawsuits against court reporting agencies that use the
technology?
A. LiveNote and Thomson West have no plans at this time to commence further lawsuits against court reporting companies or independent court reporters.

Q. How does this affect users of LiveNote realtime software?
A. The realtime license is now built into new standard software subscriptions, much like any other core feature. LiveNote subscribers may make unlimited use of our realtime software without concerns of Engate compliance or tokens. This subscription also includes the LiveNote Stream service, which provides transcript streaming over the Internet with secure instant messaging, at no extra charge (previously this service cost $85 per user connection). Existing clients may switch to this subscription plan and abandon their use of tokens at any time. To take advantage of this, please give us your name and we will have your account representative call you in the next 24 hours.

Law Firm Specific FAQs:

Q. My law firm currently uses tokens. What does this mean for us?
A. Under your current software license, you will have a continued need for token use. As an alternative, law firm clients will be eligible for enterprise-level realtime access — without the need for individual tokens. This new plan covers all LiveNote realtime connections — serial or Internet — so that your firm’s attorneys may receive live text, audio and video from the court reporter or videographer and not worry about tokens or patent compliance. The new option will simplify your firms’ litigation support and billing practices, as well as ease the administrative and technical requirements of every deposition, trial or arbitration involving realtime.

Q. What about tokens that we have already purchased? Do they expire? Can we get a
refund/credit?
A. Tokens never expire. They can be redistributed any number of times until they are used. Law firms that move to a flat-rate subscription model early in 2007 can make arrangements with their Thomson West sales rep for a credit for any returned tokens.

Q. How do we stop using the token system?
A. Contact your Thomson West representative and inquire about converting to a LiveNote subscription plan. Upon conversion, you will receive a new license code that eliminates the token requirement from the software. If you are using a current version of LiveNote, you will not need to uninstall or reinstall the application to make this change.

Q. My law firm still uses non-token LiveNote software. What does this mean for us?
A. LiveNote users have long been on notice that older versions of our realtime software are not Engate compliant. We strongly encourage our user base to upgrade to a current version of our software for legally compliant realtime use with substantially enhanced ease of use and functionality — without the use of tokens.

Q. Our law firm has always passed through our token costs to our clients. How will
that work with a flat rate subscription?
A. Your Thomson West account manager can show you a new tool that makes it easy to
track your LiveNote usage to facilitate cost recovery.

Q. Do other software products offer realtime transcription and tokens?
A. A number of other products offer realtime transcription products, though none with the range of functionality or market presence of LiveNote’s industry leading products. At present, LiveNote remains the only Engate Compliant™ realtime software; no other product uses the token system or offers other legal protection against the Engate patent.