Round Two of Patent Law Suits - Palomar Makes This Interesting

Includes: CLZR, PMTI
by: Saul Sterman

On July 30, 2006 I stated the following at the bottom of my article “No Place Like Home” : “Authors note: Part V of this series is temporarily postponed until certain information pertaining to Palomar is confirmed/refuted.”

Now you all know what I was referring to. Palomar (NASDAQ:PMTI) announced on August 10, 2006 that it had filed a patent infringement law suit against Candela (CLZR). Palomar alleges infringement of patent # US 5735844. Candela was anticipating the move and immediately filed a counter infringement law suit against Palomar claiming that its products (not sure what that means) allegedly infringe on patents # US 6659999 and # US 6743222.

In any case CrossProfit has contacted a laser expert and we are consulting with various well-informed people in the patent game. Once we have completed the research and analysis I will post the final installment, Part V, of the series.

All I can say now is that the more we get into to this exciting turn of events it becomes more apparent that this is not a repeat of the Palomar/Cutera case. I reserve final judgment until we conclude our research and Palomar decides to start replying to our inquiries. What makes this interesting is the diversity of technologies. By no means should one conclude that I dismiss the Palomar suit.

Note to Kayla from Investor Relations at Palomar: we are very serious about this. If by the time this article is posted you have replied to my last two communiqué’s, please accept my apologies.

PMTI 1-yr chart: