COURT ORDER DETAILS DIGITAL ALLY’S LITIGATION AGAINST TASER
January 29 2019 - 8:00AM
The Pre-Trial Order Sets Forth the Parties’
Theories and Damages Requests to be Presented to a Jury
Digital Ally, Inc. (NASDAQ: DGLY), which develops,
manufactures and markets advanced video surveillance products for
law enforcement, homeland security and commercial applications,
announces a development in its legal battle against Axon
Enterprise, Inc. (“Axon,” formerly TASER International, Inc.). On
January 23, 2019, the U.S District Court for the District of Kansas
issued the Pretrial Order in Digital Ally’s litigation against
Axon. The Pretrial Order details each party’s theories and defines
the scope of the case that will be presented to the jury after the
Court deals with each party’s expected summary judgment motion.
As noted in the Pretrial Order, Digital is
asserting that Axon has infringed, and is infringing, claims 10,
14, 15, 16, and 20 of the ‘452 Patent by making cameras (both the
Axon Body body-worn cameras and the Axon Fleet in-car cameras) that
are compatible with the auto-activation technology in the Axon
Signal Unit (“ASU”). The Pretrial Order also notes that Digital
Ally believes Axon will be unable to meet its high burden of
establishing invalidity and inequitable conduct, not least because
Axon failed in its previous attempts with the U.S. Patent Office to
invalidate the ‘452 Patent.
The Pretrial Order further notes that Digital
Ally is seeking “reasonable royalty damages … as a result of
TASER’s infringement of the ‘452 Patent from February 2, 2016
through August 17, 2018 [of] $68,456,524” and that “[p]rior to
trial in this matter, Digital Ally will supplement its damages
calculations.” Digital Ally’s damages calculations apply the
reasonable royalty to “TASER’s accused ASUs, Axon Signal-compatible
cameras and their associated docks, and related purchases of
Evidence.com.” Because Digital Ally has alleged that Axon’s
infringement is willful, it also will be seeking to have any
damages award trebled—a legal doctrine that, if successful, permits
the Court to triple the damages awarded by a jury. Finally, and of
particular importance for the body-worn camera marketplace, Digital
Ally is seeking a permanent injunction that will seek to remove
from the marketplace Axon’s auto-activation products, including the
Axon Signal Unit as well as the Axon Body and Fleet cameras. Axon
argues that any awarded damages should be “no more than 500,000”
and should be limited to “ASU sales only.”
“We have been exceedingly patient as this legal
process has played out and we are excited that the issuance of this
Pretrial Order puts us one step closer to trial,” said Digital
Ally’s CEO, Stanton Ross. “We are confident the jury will see
Axon’s conduct for what it is—an attempt to capture the marketplace
and drive us out through the willful infringement of our patented
auto-activation technology,” concluded Ross.
About Digital AllyDigital Ally,
Inc., headquartered in Lenexa, KS, specializes in the design and
manufacturing of the highest quality video recording equipment and
video analytic software. Digital Ally pushes the boundaries of
technology in industries such as law enforcement, emergency
management, commercial fleets, and consumer use. Digital Ally’s
complete product solutions include in-car and body cameras, cloud
and local management software, and automatic recording technology.
These products work seamlessly together and are simple to install
and operate. Digital Ally products are sold by domestic direct
sales representatives and international distributors worldwide.For
additional news and information please
visit www.digitalallyinc.com or follow us on Twitter
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Contact InformationStanton
Ross, CEOTom Heckman, CFODigital Ally, Inc.913-814-7774
info@digitalallyinc.com
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: whether the Company will achieve
positive outcomes in its litigation with Axon and the time frames
for such litigation; competition from larger, more established
companies with far greater economic and human resources; its
ability to attract and retain customers and quality employees; and
the effect of changing economic conditions. 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 because 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, 2017 and quarterly report on Form 10-Q for
the three and nine months ended September 30, 2018, filed with the
Securities and Exchange Commission
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