Route1 Files Complaint in Canada against VMware, Inc. and AirWatch LLC for Patent Infringement

Toronto, December 19, 2018 – Route1 Inc. (OTCQB: ROIUF and TSXV: ROI) (the “Company” or “Route1”), North America’s most advanced provider of industrial-grade data intelligence, user authentication and ultra-secure mobile workforce solutions, today announced that the Company filed a complaint, Court File No. T-2149-18, against VMware®, Inc. (“VMware”) and its wholly owned subsidiary AirWatch® LLC (“AirWatch”) in the Federal Court of Canada for infringement of Route1’s Canadian Patent No. 2,578,053, seeking financial compensation for infringement, legal fees, and an injunction. The compensation the Company will be seeking are material when compared to Route1’s market capitalization.

Patent Litigation

A patent lawsuit in Canada typically takes at least three years to resolve. Route1 anticipates that its current cash resources and future cash generated from operating performance will be sufficient to fund Route1’s estimated cash costs of the litigation through trial. Compensation for infringing activity may be awarded from six years prior to the filing of the lawsuit, and may be calculated on the basis of a royalty on infringing revenues, or profits wrongfully gained from infringing revenues.

VMWare/AirWatch LLC

VMware, by itself and through its wholly owned subsidiary AirWatch, is a provider of Enterprise Mobility Management (EMM) software and standalone management systems for content, applications and email. AirWatch’s EMM solutions emphasize secure communications with its employees’ mobile devices and enterprise resources.AirWatch is a wholly-owned subsidiary company of VMware, Inc., whose majority shareholder is EMC Dell. It is likely that AirWatch benefits from access to VMware’s large client base and extensive distribution channels.

Canadian Patent No. 2,578,053

Route1’s Canadian Patent No. 2,578,053 (the “053 Patent”), “System And Method For Accessing Host Computer Via Remote Computer”, was issued by the Canadian Intellectual Property Office on March 20, 2012, and will expire on September 6, 2025. Canadian Patent No. 2,578,053 is generally directed to using a controller to enable secure communication between a remote device, such as a smartphone or a portable computer, and a host computer.

Route1 is the owner of the entire right, title and interest in the 053 Patent, including the sole and undivided right to sue for infringement.

Route1’s Infringement Complaint against AirWatch

In the Company’s Statement of Claim, Route1 contends that AirWatch, VMware, and its subsidiary VMware Canada Inc. infringe on Canadian Patent No. 2,578,053 through their sales and provision of services relating to the AirWatch EMM System, which is both offered individually and as a part of VMware’s digital workspace platform, VMware Workspace ONE®.

About Route1 Inc.
Route1, operating under the trade name GroupMobile, is North America’s most advanced provider of industrial-grade data intelligence, user authentication, and ultra-secure mobile workforce solutions. The Company helps all manner of organizations, from government and military to private sector, to make intelligent use of devices and data for immediate process improvements while maintaining the highest level of cyber security. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.

For More Information, Contact:
Peter Chodos
Executive Vice President, CFO, Route1 Inc.
+1 416 814-2619
peter.chodos@groupmobile.com

This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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