Item 8.01. Other Events.

On September 24, 2009, in our litigation against Kara Technology, the United States Court of Appeals for the Federal Circuit vacated-in-part and reversed-in-part our final judgment entered on September 10, 2008. In particular, the Court vacated the jury verdict that NetStamps does not infringe and reversed the grant of summary judgment on the breach of contract claim. Each are remanded for further proceedings. Our grants of summary judgment that PhotoStamps does not infringe and on the trade secret claim remain in effect. We continue to dispute the remaining claims and intend to defend the lawsuit vigorously.

For further information about Stamps.com litigation, please refer to our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2009.

---