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PCT Takes Legal Action To Protect Against Hostile Takeover

Following the filing of an Involuntary Petition by an adverse party, PCT International, Inc. has moved to convert the filing to Chapter 11 in order to protect itself from hostile actions aimed at gaining control of PCT and its intellectual property rights. PCT’s lenders are committed to the company with Sallyport Commercial Finance saying “We are supporting PCT and their Team 100% during their Chapter 11 restructuring process.” PCT is optimistic that the Court will quickly grant its Motion.

After 20 years, PCT’s telecom business model remains strong. PCT stays committed to delivering the best quality at the best price.

This action comes after a series of court decisions. In 2006, PPC/Belden brought an action against Holland/Amphenol Electronics for infringing PPC connector patents. PPC prevailed, putting Holland’s connector business in jeopardy. But then PCT’s former vendor, EZconn, secretly engineered compression connectors for Holland/Amphenol using PCT IP and trade secrets to keep Holland/Amphenol in the connector market.

Undisclosed to PCT, EZconn or its principals had a financial stake in Holland/Amphenol and used PCT’s IP and trade secrets to help keep the Holland/Amphenol connector business afloat. PCT brought an infringement suit against Holland when it was discovered that they had infringed on PCT’S IP. In 2015, the Court ruled in PCT’s favor and granted a Judgment against Holland/Amphenol.

During the course of that case PCT found that Holland was able to infringe its IP only because EZconn had given PCT’s IP and engineering trade secrets to them. It was also discovered that EZconn gave Holland PCT’s financial, cost, and pricing information. Court records include information supporting the fact that these disclosures occurred and that Michael Holland, President of Holland, asked EZconn to erase the emails between the two companies, fearing legal action.

PCT also learned that EZconn had taken its IP and obtained its own patents on that IP without PCT’s knowledge or consent. This included patents on PCT’s improved locking connector. PCT has filed an invalidity action to protect its IP and expects a positive outcome shortly.

PCT ceased doing business with EZconn based on these bad acts and in 2014 began legal action to address these issues. PCT sought judgment to recover damages for these acts. EZconn brought actions against PCT as well. But, the law firm that PCT used in that action did not properly plead the case which resulted in judgments being issued against PCT. PCT has retained the nationally renowned law firm of Beus Gilbert as counsel in a malpractice case against that firm.

This Chapter 11 filing provides PCT space to continue its operations, maintain its supply chain, protect its IP, ensure the company’s future success and thwart this attempted hostile takeover. PCT will continue to support its customers with quality products and services.

About

PCT International, Inc. is a privately owned company serving a significant segment of the U.S. telecommunications infrastructure. PCT has manufactured over 1,000,000 miles of coaxial cable with its proprietary technology. PCT has also sold over one billion coaxial cable connectors worldwide. PCT’s patented coaxial cable and connectors have been installed in approximately 10% of all homes and businesses in America. To learn more, visit, http://www.pctinternational.com/our-company/.

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