UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported): November 6, 2008
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CLEARONE
COMMUNICATIONS, INC.
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(Exact
Name of Registrant as Specified in its Charter)
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Utah
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000-17219
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87-0398877
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(State
or Other
Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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5225
Wiley Post Way, Suite 500
Salt
Lake City, Utah 84116
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(Address
of principal executive offices) (Zip
Code)
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Registrant's
Telephone Number, Including Area Code: (801) 975-7200
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR
240.14a- 12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
7.01. Regulation
FD Disclosure.
A jury
trial was held in federal court in Utah in connection with our lawsuit (the
“Intellectual Property Case”) against Biamp Systems Corporation (“Biamp”);
WideBand Solutions, Inc. (“WideBand”); three of WideBand’s principals – Dr. Jun
Yang, who was a former ClearOne employee, Andrew Chiang, who was previously
affiliated with an entity that sold certain assets to ClearOne, and Lonny
Bowers; and Versatile DSP, Inc. (collectively, the “Defendants”). Our
complaint brought claims against different combinations of the Defendants for,
among other things, misappropriation of trade secrets, breach of contract,
breach of the covenant of good faith and fair dealing, and breach of fiduciary
duty, primarily in relation to the theft of certain algorithms and computer
code. At trial, and throughout the Intellectual Property Case,
ClearOne was represented by the Utah law firm of Magleby & Greenwood,
P.C.
On
November 7, we announced that the jury returned a verdict in the Intellectual
Property Case in favor of ClearOne and against all of the
Defendants. Accordingly, the jury awarded us approximately $3.5
million in compensatory damages and $7.0 million in punitive
damages. Among other things, the jury found that all of the
Defendants willfully and maliciously misappropriated our trade
secrets. Based on that finding, the court may also award ClearOne
exemplary damages and reasonable attorneys’ fees. The court left in
place the previously-entered preliminary injunction, pending our application for
entry of a permanent injunction against the Defendants.
While we
intend to vigorously pursue collection of the damage awards, collectability of
the judgments cannot be guaranteed. Furthermore, the jury’s verdict
and damage awards are subject to appeal by one or more of the
Defendants.
On
November 7, 2008, we issued a press release announcing the jury verdict and the
damage awards. A copy of the press release is attached as an exhibit
to this report.
Item
9.01. Financial
Statements and Exhibits.
(a) Financial Statements of Business
Acquired.
Not applicable.
(b) Pro Forma Financial
Information.
Not applicable.
(c) Exhibits.
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Exhibit No.
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Title of Document
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Location
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99.1
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Press
Release issued by ClearOne Communications, Inc. dated November 7,
2008.
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This
Filing
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: November
7, 2008
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CLEARONE
COMMUNICATIONS, INC.
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By:
/s/ Zeynep
Hakimoglu
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Zeynep
Hakimoglu
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Chairman,
President and CEO
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