8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report: (Date of earliest event reported): June 22, 2009

ION Geophysical Corporation

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation) 1-12691
(Commission file number) 22-2286646
(I.R.S. Employer Identification No.)

2105 CityWest Blvd, Suite 400
Houston, Texas 77042-2839
(Address of principal executive offices, including Zip Code)

(281) 933-3339
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

          On June 22, 2009, ION Geophysical Corporation (the “Company”) issued a press release announcing that it had filed an answer and counterclaims against WesternGeco L.L.C. (“WesternGeco”) in the lawsuit styled WesternGeco L.L.C. v. ION Geophysical Corporation, originally filed by WesternGeco in the United States District Court for the Southern District of Texas, Houston Division, on June 12, 2009. A copy of the press release is attached as Exhibit 99.1.

          In its original complaint filed against the Company, WesternGeco alleges that the Company has infringed several United States patents regarding marine seismic streamer steering devices that are owned by WesternGeco. WesternGeco is seeking unspecified monetary damages and an injunction prohibiting the Company from making, using, selling, offering for sale or supplying any infringing products in the United States. Based on the Company’s review of the lawsuit filed by WesternGeco and the WesternGeco patents at issue, the Company believes that its products do not infringe any WesternGeco patents, that the claims asserted by WesternGeco are without merit and that the ultimate outcome of the claims will not result in a material adverse effect on the Company’s financial condition or results of operations. The Company intends to defend the claims against it vigorously.

          In its answer and counterclaims, the Company denies that it has infringed WesternGeco’s patents and asserts that the WesternGeco patents are invalid or unenforceable. The Company also asserts that WesternGeco’s Q-Marine system, components and technology infringe upon a United States patent owned by the Company related to marine seismic streamer steering devices. The claims by the Company also assert that WesternGeco misappropriated the Company’s proprietary technology and breached a confidentiality agreement between the parties by using the Company’s technology in its patents and products and that WesternGeco tortiously interfered with the Company’s relationship with its customers. In addition, the Company claims that the lawsuit against it by WesternGeco is an illegal attempt by WesternGeco to control and restrict competition in the market for marine seismic surveys performed using laterally steerable streamers. In its counterclaims, the Company is requesting various remedies and relief, including a declaration that the WesternGeco patents are invalid or unenforceable, an injunction prohibiting WesternGeco from making, using, selling, offering for sale or supplying any infringing products in the United States, a declaration that the WesternGeco patents should be co-owned by the Company, and an award of unspecified monetary damages.

          The information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(a)	Financial statements of businesses acquired.
	Not applicable.
(b)	Pro forma financial information.
	Not applicable.
(c)	Shell company transactions.
	Not applicable.
(d)	Exhibits.

Exhibit Number		Description
	99.1	Press Release dated June 22, 2009.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 22, 2009	ION GEOPHYSICAL CORPORATION
	By:	/s/ DAVID L. ROLAND
		David L. Roland
		Senior Vice President, General Counsel and Corporate Secretary

EXHIBIT INDEX

Exhibit Number		Description
	99.1	Press Release dated June 22, 2009.

3

EX-99.1

Exhibit 99.1

ION Files Patent Infringement Lawsuit Against WesternGeco

HOUSTON, TX — June 22, 2009 — ION Geophysical Corporation (NYSE: IO) today announced that it has filed a lawsuit against WesternGeco L.L.C. in the United States District Court for the Southern District of Texas. The lawsuit alleges that WesternGeco’s Q-Marine system, components and technology infringes ION’s U.S. Patent No. 6,525,992 related to steering devices and control systems for marine seismic streamers. The lawsuit also alleges that WesternGeco misappropriated ION’s proprietary technology by using ION’s technology in its patents and products, tortiously interfered with ION’s customer contracts, and breached a confidentiality agreement between the parties. ION is asking the court to enjoin WesternGeco from making, selling, or using its Q-Marine system and components and any other infringing products, as well as for monetary damages.

ION filed the lawsuit after attempts to negotiate a licensing arrangement with WesternGeco were unsuccessful and WesternGeco filed a preemptive lawsuit against ION, claiming that ION infringed several patents that were issued to WesternGeco after ION’s ‘992 patent was issued. In response to the lawsuit filed by WesternGeco, ION has asked the court to declare that the WesternGeco patents are not infringed and are invalid. ION is also asserting that the lawsuit against it by WesternGeco is an illegal attempt to restrict competition in the market for marine seismic surveys performed using laterally steerable streamers. Based on ION’s review of the lawsuit and the patents at issue, ION believes that the claims brought by WesternGeco are without merit and intends to defend the claims against it vigorously.

ION’s ‘992 patent was filed in 1995 and issued in 2003 after years of development efforts by ION and its predecessors. Bob Peebler, ION’s Chief Executive Officer, commented, “ION is a company founded on innovation and our technology regarding steerable streamers is an excellent example. From the original DigiBird™ streamer depth control device to our latest DigiFIN™ streamer lateral steering device and ORCA^® next-generation command and control system, our technology in this area reflects more than 20 years of development efforts by many innovative individuals, with the overriding goal to provide advanced positioning systems that enable seismic service providers to operate more efficiently and safely while delivering higher resolution subsurface images to their oil and gas customers. We would always prefer to resolve disputes without resorting to litigation, but we are committed to protecting and enforcing our extensive patent and intellectual property portfolio and in this case WesternGeco left us with no other choice.

As for the claims brought by WesternGeco, we strongly believe that none of our products infringe their patents and that we can provide customers with access to all of our products and technology without being in conflict with any validly issued patents of other parties, including those of WesternGeco. We believe that WesternGeco’s attempt to control the market through threats against our customers and legal action against ION is a validation of the success and promise of ION’s product line. I would encourage any customer with concerns about the claims brought against ION to contact their ION sales representative to learn more information.”

About ION

ION is a leading provider of geophysical technology, services, and solutions for the global oil & gas industry. ION’s offerings allow E&P operators to obtain higher resolution images of the subsurface to reduce the risk of exploration and reservoir development, and enable seismic contractors to acquire geophysical data more efficiently. Additional information about ION is available at www.iongeo.com.

Contacts

ION (Investor relations)
Chief Financial Officer
Brian Hanson, +1 281.879.3672

The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning outcome of litigation, which is inherently unpredictable. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the outcome of the litigation. Additional risk factors, which could affect actual results, are disclosed by the Company from time to time in its filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.

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