July 19, 2006 – (HOSTSEARCH.COM) – Web hosting provider Hostopia (http://www.hostopia.com) has gone into an agreement with Web.com (http://www.web.com) to license its patents. The non-exclusive license agreement allows Hostopia rights to two of Web.com's patents for a period of five years. The patents are for website building and web hosting control panels methods and payment will be made at 10% of Hostopia’s US retail revenues during the period.
The two companies have also agreed on a cross-license scheme which grants Web.com thousands of html and Flash website templates and future intellectual property at no cost. A “mutual covenant” also exists between the two companies not to sue for patent infringement.
"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," suggested Colin Campbell, CEO of Hostopia.com Inc. "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 is delighted that Hostopia has recognized the value and validity of our patent portfolio by purchasing this license," added Jeff Stibel, President and CEO for Web.com. "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."
