In the News

Frequently Asked Questions about Kardia’s Lawsuit

2/18 Update:
Freeland Systems announced their intention to conduct a sale of certain assets including software that pre-dates the acquisition by Kardia on May 8, 2008.

• Does Freeland’s intended sale have any impact on Kardia customers?
• Should you pay Kardia?
• Update on Kardia’s lawsuit against Freeland and the recent Court Ruling
• Who supports me?
• Should I upgrade to ConnectedCare™?
• What versions can I use?
• What is the future moving forward?
• What products can I purchase only from Kardia?
• What products can I not purchase from Freeland Systems?
• What about upgrades?

Does Freeland’s intended sale have any impact on Kardia customers?

No.

• Your contract is with Kardia and is unaffected by the sale and/or by the Court’s Order. The Court rejected Freeland’s efforts to publicly sell customer information. Kardia will continue to support you.
• Kardia is upgrading all customers with active support contracts to Kardia ConnectedCare V2. Many have already upgraded and are enjoying better performance and enhanced functionality.
• The Court ruled that Kardia owns all the software developed and software versions delivered after May 8, 2008. This is the software that is at the heart of Kardia ConnectedCare V2.
• There is no copyright issue now or after Freeland’s proposed sale. Your service contract with Kardia protects you against all copyright infringement claims.

Should you pay Kardia?

Yes. Your contract is with Kardia for software and services that Kardia is or has provided. You should pay us.

Update on Kardia’s lawsuit against Freeland and the recent Court Ruling

In September 2009, Kardia sued Freeland Systems for fraud arising out of Kardia’s purchase of assets. Shortly after the Kardia lawsuit began, Freeland Systems announced its intent to sell various assets.

On February 12, the U.S. Federal Court made a ruling on the dispute concerning the ownership of assets between Kardia and Freeland. Here are the key points from the Court’s ruling:

1. Kardia owns all software developed after May 8, 2008 – the date of the acquisition – and the Court’s ruling prohibits Freeland Systems from conducting a sale of customer lists or other confidential customer information, and also all of the software developed since May 8, 2008.
2. The Court’s ruling does not affect your contract with Kardia. Your contract, including your annual support contract, was and remains with Kardia. You are our customer. Freeland wanted to sell customer information at a sale and the Court’s ruling stopped him from doing so.
3. Kardia will continue to support you. Kardia retains key team members who have worked on the development, support, marketing and sale of Kardia’s software during the past several years.
4. Kardia did not oppose the return of the “AccessPoint” product name to Freeland, and Kardia will no longer be using the “AccessPoint” product name. Kardia’s products are called ConnectedCare™.
5. We encourage all Kardia customers to upgrade to ConnectedCare™ V2, the latest version of our software, which includes 1,300 developments and new features added since May 2008.
6. Payments for Kardia software and Kardia support should continue to be sent to Kardia Health Systems as we retain ownership of all software developed after May 8, 2008 and all customer contracts. If you have inadvertently paid Freeland, please contact Kardia.

Who supports me?

A. Your contract remains with Kardia, and includes annual support through Kardia. The Court’s ruling did not affect your contract. In addition, Kardia owns the source code, object code, and supporting documentation for all software developed since May 2008 and continues to employ team members who assisted in the development, support, marketing and sale of Kardia’s software over the past several years.

Should I upgrade to Kardia ConnectedCare?

A. Absolutely. This is your choice, but Kardia recommends this upgrade. Kardia’s 1,300 developments in ConnectedCare since May 2008 ensures optimal performance, incorporates required security upgrades, and includes numerous features in response to direct customer request including:

• Sophisticated archive management and report distribution
• Multi-modality support including integration with best-in-class nuclear image processing
• Robust, secure web distribution to let physicians review diagnostic quality images and complete structured reports remotely without waiting
• Improved HL7 integration with popular EMR systems
• Enhanced screen readers and measurement mapping
• Integration with Kardia’s secure data centers for long-term archiving and web access
• Improved DICOM server performance, administration, and scalability

What versions can I use?

A. You may continue to use the version you have, although Kardia recommends that you take advantage of the complimentary upgrade to ConnectedCare™ V2. Kardia owns the software (including source code, object code, and supporting documentation) for all software distributed since May 2008. If you have issues, please contact Kardia for technical support.

What is the future moving forward?

A. Kardia remains committed to improving patient outcomes and enhancing collaboration for cardiologists with software delivered as a service over the web. Kardia is financially sound with an exciting product vision and the experienced team to deliver on that vision.

Kardia’s fraud case against Freeland remains open and is yet to be determined. This is a business dispute that will be decided in federal court.

What products can I purchase only from Kardia?

A. Only Kardia and Kardia licensees can sell software based on code developed since May 8, 2008.

What products can I not purchase from Freeland Systems?

A. Freeland Systems is not allowed to sell software products based on code developed since May 8, 2008 by Kardia. Freeland Systems is entitled only to software that predates May 8, 2008.

What about Upgrades?

A. Kardia ConnectedCare V2 is available for upgrade today. Upgrade is available at no charge for customers under active support contracts. Many of our customers have already upgraded and are enjoying the optimal performance and latest features. To learn more about upgrading to ConnectedCare V2 go to www.kardiahealth.com or contact Kardia’s Help Desk at 1-877-4KARDIA.