October 19, 2006—InSite One Inc (Wallingford, Conn) announced Tuesday that it has filed a claim for patent infringement against i3 Archive Inc and subsidiary company National Digital Medical Archive Inc (NDMA of Berwyn, Pa).

InSite One alleges that NDMA and i3 have infringed upon United States Patent No. 6,574,742, which relates to offsite digital image storage and management; InSite claims the companies are encouraging customers to infringe on this patent, and seeks an injunction to halt the companies from offering their services to present and future companies. InSite is also seeking payment of damages.

James Champagne, president and CEO of InSite, said, “As a leading innovator of offsite storage technology for the medical field, we believe competition is a way to foster the growth of the market. However, we must take action against companies that attempt to profit from our innovation by infringing our intellectual property.”

Derek Danois, president of NDMA, presented his company’s perspective: “There is a history between the companies. In fact, in March of 2006, our attorneys sent a cease and desist letter to InSiteOne regarding reported inappropriate business tactics on the part of InSiteOne. We filed this action after repeated attempts by the defendant to intimidate our customers and threaten our business. We have reviewed the patent in question and are confident that the defendant’s counterclaim against our company is without merit.”

NDMA and i3 have filed a lawsuit for declaratory judgment of non-infringement and invalidity of the ‘742 patent.

—Cat Vasko