OpenText pursues legal action against Box for alleged patent infringement
OpenText said on Monday that it is seeking $268 million in damages from online storage company Box for over 200 claims of alleged patent infringement.
OpenText told Box on Sunday that it is seeking preliminary and permanent injunctions that would halt the sale of Box products that allegedly infringe on its patents. OpenText filed a patent infringement suit against Box in June in the U.S. District Court for the Northern District of California. The company said that Box is infringing on 12 patents.
Box filed plans to raise as much as $250 million in an initial public offering soon. Box generates revenue through subscription fees for additional storage. Box’s revenue for the year ended January 31st at around $124.2 million, which is up from $58.8 million the prior year.
Box saw a loss every year since it was founded in 2005 though. The annual loss went from $168.9 million for the year ended January 31st from $112.8 million since sales and marketing expenses increased 73%.