EXHIBIT 1002
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`EXHIBIT 1002EXHIBIT 1002EXHIBIT 1002
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`FOR IMMEDIATE RELEASE
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`NETWORK-1 ANNOUNCES SETTLEMENT OF PATENT LITIGATION
`WITH GARRETTCOM, INC.
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`GarrettCom Agrees to License Network-1’s Remote Power Patent for Power over
`Ethernet Products through 2020
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`New York, New York-October 18, 2012-- Network-1 Security Solutions, Inc. (OTC BB: NSSI)
`announced today that it agreed to settle its patent litigation against GarrettCom, Inc.
`(“GarrettCom”), a subsidiary of Belden, Inc. (NYSE: BDC) pending in the United States District
`Court for the Eastern District of Texas, Tyler Division, for infringement of Network-1’s Remote
`Power Patent (U.S. Patent No. 6,218,930). Garrettcom was one of 16 defendants defendants
`named in the litigation.
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`As part of the settlement, GarrettCom entered into a settlement agreement and non-
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`exclusive license agreement for the Remote Power Patent. Under the terms of the license,
`Garrettcom will license the Remote Power Patent for its full term which expires in March 2020
`and will make an initial payment combined with annual royalties based on its sales of certain
`Power over Ethernet (“PoE”) products, including those PoE products which comply with the
`Institute of Electrical and Electronic Engineers (“IEEE”) 802.3af and 802.3at Standards.
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`As part of the settlement agreement, all claims involving GarrettCom in the litigation
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`currently pending in the Eastern District of Texas will be dismissed with prejudice.
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` In September 2011, the Company initiated patent litigation against 16 data networking
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`equipment manufacturers in the United States District Court for the Eastern District of Texas,
`Tyler Division, for infringement of its Remote Power Patent. Named as defendants in the
`lawsuit, excluding related parties, were Alcatel-Lucent USA, Inc., Allied Telesis, Inc., Avaya
`Inc., AXIS Communications Inc., Dell, Inc., GarrettCom, Inc., Hewlett-Packard Company,
`Huawei Technologies USA, Juniper Networks, Inx., Motorola Solutions, Inc., NEC Corporation,
`Polycom Inc., Samsung Electronics Co., Ltd., ShoreTel, Inc., Sony Electronics, Inc., and
`Transitions Networks, Inc. Network-1 seeks monetary damages based upon reasonable royalties.
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`The Remote Power Patent relates to, among other things, delivering power over Ethernet
`cables to remotely power network connected devices including, among others, wireless switches,
`wireless access points, RFID card readers, VoIP telephones and network cameras. In June 2003,
`the IEEE approved the 802.3af PoE Standard, which led to the rapid adoption of PoE. The IEEE
`also approved the 802.3at Power over Ethernet Plus (PoE Plus) Standard, which increased the
`maximum power delivered to network devices to 40-60 watts from the current 15 watts under the
`802.3af Standard.
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`415734-1
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`ABOUT NETWORK-1 SECURITY SOLUTIONS, INC.
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`Network-1 Security Solutions, Inc. is engaged in the acquisition, development, licensing and
`protection of its intellectual property and proprietary technologies. It currently owns six patents
`covering various telecommunications and data networking technologies and is currently focusing
`its licensing efforts on its Remote Power Patent (U.S. Patent No. 6,218,930) covering the remote
`delivery of power over Ethernet networks. The Remote Power Patent was granted by the U.S.
`Office of Patents and Trademarks on April 21, 2001 and expires on March 11, 2020. In addition,
`Network-1 seeks to acquire additional intellectual property assets and enter into strategic
`relationships with third parties to monetize their intellectual property assets.
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`This release contains forward-looking statements within the meaning of the "safe harbor"
`provisions of the Private Securities Litigation Reform Act of 1995. These statements address
`future events and conditions concerning Network-1’s business plans. Such statements are subject
`to a number of risk factors and uncertainties as disclosed in the Network-1’s Annual Report on
`Form 10-K for the year ended December 31, 2011 including, among others, the continued
`validity of Network-1’s Remote Power Patent, the ability of Network-1 to enter into additional
`license agreements with third parties for its intellectual property or the intellectual property of
`its strategic partners, the ability of Network-1 to receive significant royalties from its existing
`license agreements, the uncertainty of patent litigation, Network-1's ability to achieve revenues
`and profits from its intellectual property or the intellectual property of its strategic partners,
`Network-1's ability to execute its strategy to acquire additional patents or enter into strategic
`relationships with third parties to license or otherwise monetize their intellectual property, the
`continued viability of the PoE market, future economic conditions and technology changes and
`legislative, regulatory and competitive developments. Except as otherwise required to be
`disclosed in periodic reports, Network-1 expressly disclaims any future obligation or
`undertaking to update or revise any forward-looking statement contained herein.
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`Contacts:
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` Network-1 Security Solutions, Inc.
` Corey M. Horowitz, 212-829-5770
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