Atlanta, Georgia – (The Hosting News) – July 18, 2006 – Web hosting and Internet services company, Web.com, has entered into a non-exclusive license agreement with Hostopia.com Inc., granting Hostopia the rights to two of Web.com’s patents over five years on a non-transferable basis.
The specific licensed patents are U.S. Patent numbers 5,680,152 and 6,789,103 and broadly cover methods for website building and web hosting control panels. The license agreement states that Hostopia will pay Web.com a royalty equal to 10% of its gross U.S. retail revenues for five years (royalty estimated using a trailing run rate). The royalty will be due in full at signing. In addition, the companies have entered a cross-license agreement in which Web.com was granted rights to thousands of HTML and FLASH website templates and a license to additional intellectual property in the future at no additional cost. The companies have also agreed to a mutual covenant not to sue for patent infringement.
Colin Campbell, CEO of Hostopia.com Inc. explained, ”We approached Web.com to receive a license in order to enhance our award winning private label web hosting platform and maintain our retail web hosting business. Web.com helped build this industry and their patented technology has led to numerous hosting innovations. We are pleased that the two companies were able to create a mutually beneficial relationship.”
Web.com’s portfolio of 19 registered, and numerous pending, U.S. patents relates to several core technologies that are vital to the web hosting industry.
Jeff Stibel, President and CEO of Web.com offered, ”Web.com is delighted that Hostopia has recognized the value and validity of our patent portfolio by purchasing this license. We have stated that our pioneering efforts, evidenced by 19 issued patents, helped create the web hosting industry and a patent agreement such as this certainly reinforces these claims. Hostopia is a strong company with a great reputation in the web hosting industry and we are excited that the two companies were able to work together in reaching this agreement.”
According to the company, Web.com, Inc., formerly Interland, Inc., is a leading destination for what the company designed to be a simple, yet most powerful solution for websites and web services. Web.com offers do-it-yourself and professional website design, website hosting, ecommerce, web marketing and email. Since 1995, Web.com has been helping individuals and small businesses build a web presence. More than 4 million websites have been built or hosted using Web.com’s proprietary tools, services and patented technology.
Hostopia develops, manages, and distributes Internet applications used by small and medium sized businesses, including web site hosting, managed email, ecommerce, and other online business applications. Hostopia sells its services on a wholesale basis to communications services providers such as telecommunications and cable companies, Internet service providers, domain registrars, and web hosting companies who, in turn, resell Hostopia’s services under their own brand to small-medium sized business customers.
more about Web.com, please visit: www.web.com.
For more information about Hostopia, please visit: www.hostopia.com.