Digital Ally Wins Significant Victory at U.S. Patent Office With Denial of Axon's Request to Invalidate Its '452 Patent
July 07 2017 - 7:00AM
Marketwired
Digital Ally Wins Significant Victory at U.S. Patent Office With
Denial of Axon's Request to Invalidate Its '452 Patent
LENEXA, KS-(Marketwired - Jul 7, 2017) - Digital Ally, Inc.
(NASDAQ: DGLY) ("Digital" or the "Company"), which develops,
manufactures and markets advanced video surveillance products for
law enforcement, homeland security and commercial applications,
today announces a significant victory in its legal battles against
Axon Enterprise, Inc. ("Axon," formerly known as TASER
International, Inc.).
On July 6, 2017, the U.S. Patent Office (the "Patent Office")
denied Axon's petition for inter partes review ("IPR") of
Digital's Patent No. 9,253,452 (the "'452 Patent"). The Patent
Office rejected every single ground of invalidity that Axon put
forward challenging claims 7-10 and 20. These are the exact claims
at issue in Digital's litigation against Axon. The Patent Office
further found that "...the information presented [by Axon] in the
Petition does not establish a reasonable likelihood that [Axon]
would prevail in showing the unpatentability of any of the
challenged claims on the grounds set forth in the Petition."
The '452 Patent generally covers the automatic activation and
coordination of multiple recording devices in response to a
triggering event such as a law enforcement officer activating the
light bar on the vehicle. This pioneering invention eliminates the
burden of manually activating multiple recording devices when law
enforcement officers are responding to an emergent situation. This
invention will help to guarantee that all relevant evidence is
captured, even if an officer forgets to activate his cameras.
The Patent Office's decision yet again confirms the strength and
validity of Digital's patents, as well as the inadequacy of Axon's
invalidity arguments. With this loss, the Company believes that the
practical availability of Axon's litigation defenses is now
severely limited, principally leaving infringement and damages to
be resolved. Additionally, because Axon waited until nearly the
expiration of its one-year time limit within which to file the most
recent IPRs, Axon is now barred from filing any further IPRs
against the '452 Patent, as well as against Digital's Patent No.
8,781,292 (the "'292 Patent").
"We are extremely pleased with the Patent Office's decision to
confirm the validity of our '452 Patent," said Digital's CEO,
Stanton E. Ross. "It is unfortunate that Axon continues to raise
these baseless validity arguments to avoid a clear case of willful
infringement. We remain committed to defeating Axon's arguments and
ultimately winning this lawsuit. We look forward to restarting our
patent infringement litigation in U.S. District Court against Axon,
which had been stayed pending the Patent Office IPRs. We will now
take the necessary actions to move to a trial where a jury can
finally end Axon's willful infringement and assess damages due to
us."
The Company plans to conduct a conference call on Monday, July
10, 2017. Time and dial-in information will be circulated later
today.
About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced
technology products for law enforcement, homeland security and
commercial applications. The Company's primary focus is digital
video imaging and storage. The Company is headquartered in Lenexa,
Kansas, and its shares are traded on The Nasdaq Capital Market
under the symbol "DGLY." For additional news and information please
visit www.digitalallyinc.com or follow us on Twitter
@digitalallyinc and Facebook www.facebook.com/DigitalAllyInc.
Follow additional Digital Ally Inc. social media channels
here:
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This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934. These forward-looking
statements are based largely on the expectations or forecasts of
future events, can be affected by inaccurate assumptions, and are
subject to various business risks and known and unknown
uncertainties, a number of which are beyond the control of
management. Therefore, actual results could differ materially from
the forward-looking statements contained in this press release. A
wide variety of factors that may cause actual results to differ
from the forward-looking statements include, but are not limited
to, the following: the ultimate outcome of the patent infringement
litigation between the Company and Axon; whether Axon will seek to
have the Patent Office reconsider its IPR decision and whether the
Patent Office will do so; competition from larger, more established
companies with far greater economic and human resources; the effect
of changing economic conditions; and changes in government
regulations and similar matters. These cautionary statements should
not be construed as exhaustive or as any admission as to the
adequacy of the Company's disclosures. The Company cannot predict
or determine after the fact what factors would cause actual results
to differ materially from those indicated by the forward-looking
statements or other statements. The reader should consider
statements that include the words "believes", "expects",
"anticipates", "intends", "estimates", "plans", "projects",
"should", or other expressions that are predictions of or indicate
future events or trends, to be uncertain and forward-looking. The
Company does not undertake to publicly update or revise
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional information respecting
factors that could materially affect the Company and its operations
are contained in its annual report on Form 10-K for the year ended
December 31, 2016 and Form 10-Q for the three months ended March
30, 2017, as filed with the Securities and Exchange
Commission.
For Additional Information, Please Contact: Stanton E. Ross CEO
(913) 814-7774 Thomas J. Heckman CFO (913) 814-7774
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