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EXHIBIT 99.1
CERTIFICATION OF STATEMENTS
CONTAINED IN FORM 10 REGISTRATION STATEMENT
The undersigned hereby certifies to USA Video Corporation ("USA Video"),
and its counsel Ogden Murphy Wallace P.L.L.C., as follows:
1. My professional and educational background includes the following
credential(s) and degree(s) that is(are) relevant to the statements I am
certifying:
I am a partner in the Intellectual Property firm of Hill & Hunn LLP. I
have received the following degrees: BS Electrical Engineering, University of
Texas (1977); J.D., University of Texas (1980); MS Computer Science, University
of Texas at Dallas (1989). I became registered to practice before the United
States Patent and Trademark Office in 1979. I am licensed to practice law in
the courts of the State of Texas, and am a member of several Federal District
Courts and Courts of Appeal.
I have practiced Intellectual Property law, primarily in the area of
patents, exclusively since 1980. I have written hundreds of patent
applications, and have been extensively involved in patent licensing and
enforcement, including litigation. I have been retained as an expert in several
cases regarding patent law and procedures, and regarding issues of infringement
and patent validity. I also have extensive experience counseling patent owners
regarding the value of their patents. I have lectured on Intellectual Property
Law issues, and am a member of the Texas State Bar College.
2. My employment and/or other experience includes the following
experience and/or has given me the following expertise that is relevant to the
statements I am certifying:
I wrote the original application that matured into Patent # 5,130,792, and
have been responsible for filing and obtaining foreign patents as well. I am
thus very familiar with the scope of the US and foreign patents, and their
strength in view of the prior art. I have been the patent counsel for USA Video
since 1989, and continue in this role at the present time. I have been in
charge of reinstating the `792 Patent.
I have advised the company regarding all of its patent assets and
obligations, and continue to do so on a regular basis. I have worked with
representatives of the company to establish the facts set forth in the attached
statement, and have contributed to the preparation of the statement itself.
3. I have read the statements attached hereto concerning the status and
prospects of USA Video's patents. The statements (a) are true and correct, (b)
do not contain an untrue statement of material fact, and (c) do not omit to
state a material face necessary in order to make the statements, in the light of
the circumstances under which they are made, not misleading.
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4. I understand that my certification will be provided to the Securities
and Exchange Commission as supplemental information pursuant to Rule 12b-4 under
the Securities Exchange Act of 1934, and hereby consent to the same.
IN WITNESS WHEREOF, the undersigned has executed this Certification of
Statements Contained in Form 10 Registration Statement as of the date set forth
beside his signature.
/s/ Kenneth Hill June 30, 2000
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(Signature) (Date)
Kenneth Hill
Hill & Hunn LLP
Intellectual Property Attorneys
201 Main Street, Suite 1440
Fort Worth, Texas 76102
Voice: (817) 332-2113
Fax: (817) 332-2114
[email protected]
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The Patents
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USA Video owns patents for Video-on-Demand technology and Video-on-Demand
systems. Patent counsel believes that the patents are relevant to emerging
video transmission technology, but the patents are not critical to the current
development of business.
USA Video applied for a U.S. patent for its Store and Forward VoD
technology on February 1, 1990. Corresponding overseas applications were filed
in 1992. USA Video was granted U.S. Patent # 5,130,792 on July 14, 1992. On
June 12, 2000, the U.S. Patent Office reinstated the patent for USA Video's
Store and Forward VoD technology, which had expired because of an administrative
oversight that led to late payment of fees due in 1995.
In 1999, USA Video was granted patents on its Store and Forward VoD patent
applications in five European countries: England, France, Germany, Italy and
Spain. The technological characteristics of the European Patents are based on
the U.S. Patent, covering systems for transmitting video programs to remote
locations over a switched telephone network, and are similar in scope to the
U.S. patent claims. Additional applications are pending in Canada and Japan.
The value of the USA Video patents is presently unknown. Patent counsel
believes that the value of these patents will depend on what happens in the
future in Video-on-Demand technology. The value will also depend upon
enforcement decisions yet to be made by management. Any value which the patents
may have would be recognized either through a licensing program, or through
market advantage obtained by excluding others from the patented technology. The
scope of the potential market for licensing USA Video's Video-on-Demand patent
will be determined by how expansive the market for encoded video products
becomes, how many major industry players develop profitable VoD markets, and the
technology used to implement the products
USA Video intends to enforce its patents through licensing agreements and
friendly negotiations. Should that approach fail, USA Video is prepared to
prosecute infringement of its patents through litigation.
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