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Netherlands-based Vistaprint N.V (VPRT - Analyst Report) recently announced that its Bermuda-based subsidiary Vistaprint Limited has won the pending patent violation lawsuit against its rival ColorQuick LLC.

Patent is an exclusive intellectual property right of the inventor, which prevents others from making, using, selling or distributing the patented invention without permission.

The case was filed in the U.S. District Court for the Eastern District of Texas in July 2009. After a five-day trial, the judge ruled in favor of Vistaprint. The Texas jury ruled that Vistaprint was not found guilty of violating ColorQuick patent covering computer technologies for printing documents and other media.

Vistaprint, a large online supplier of printed and promotional materials as well as marketing services to micro businesses and consumers, is happy with the verdict as it will now be able to use its innovative technology.

Management believes that it can go to any extent to safeguard its innovation and proprietary rights and will not entertain any wrong allegation. Such litigation battles involve huge expenses and risk. This case sends a strong signal that the company will vigorously defend its reputation and honor.

In the printing industry, technology and patents play an important role. Vistaprint continues to file lawsuits against various companies for patent infringement. In May 2007, Vistaprint filed a patent infringement suit against two Taylor Corporation subsidiaries 123Print, Inc. and Drawing Board, Inc. This case is still pending.

Vistaprint’s primary competitors are Sykes Enterprises Inc. (SYKE - Snapshot Report) and TeleTech Holdings Inc. (TTEC - Snapshot Report).

We currently retain a Zacks #3 Rank (short-term Hold rating). We also reiterate our long-term Neutral recommendation.

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