TASER’S FINAL CHALLENGE TO THE VALIDITY OF DIGITAL’S AUTO-ACTIVATION ‘452 PATENT REJECTED BY THE PATENT OFFICE
February 28 2019 - 07:30AM
The Patent Office denied Taser’s request to
reconsider its IPR loss
Digital Ally, Inc. (NASDAQ: DGLY) which develops, manufactures and
markets advanced video surveillance products for law enforcement,
homeland security and commercial applications is pleased to
announce yet another major victory in its legal battles against
Axon Enterprise, Inc. (the company formerly known as TASER). On
February 25, 2019, the Patent Office again rejected TASER’s
attempts to invalidate Digital Ally’s Patent No. 9,253,452 (“the
‘452 Patent”).
On December 20, 2016, TASER filed a petition for
inter parties review with the Patent Office seeking to invalidate
the ‘452 Patent, which has revolutionized the body-camera industry.
On July 6, 2017, the Patent Office rejected TASER’s request finding
that it was so deficient that it did not even warrant institution
for closer inspection. Obviously frustrated with this result, TASER
requested that the Patent Office reconsider its ruling. In its
request, TASER argued that the Patent Office overlooked TASER’s
evidence and misapplied the law. Earlier this week the Patent
Office rejected TASER’s request finding that TASER was improperly
using it as “an opportunity to present new argument or evidence”
and that it was an “attempt to address the deficiencies” in TASER’s
original petition.
TASER began challenging the validity of Digital
Ally’s auto-activation patents at the Patent Office through four
separate IPR challenges over two years ago. Every one of those
attempts has been unsuccessful. This denial of its Rehearing
Request represents the final nail in the coffin for TASER’s IPR
challenges. There are no longer any pending IPRs on which TASER can
invalidate Digital Ally’s auto-activation patents. Additionally,
TASER is now barred from filing any further IPRs against these
patents.
Because Enforcement Video, LLC (d/b/a WatchGuard
Video) (“WatchGuard”) had agreed to be bound by the result of
Axon’s attempt to invalidate the ‘452 Patent, the Patent Office’s
denial also means that WatchGuard’s ability to challenge the
validity of the ‘452 Patent is now severely limited. Like Axon,
WatchGuard is barred from filing any further IPRs challenging any
of the patents asserted against it.
“This decision represents another confirmation
of the validity of our auto-activation patents,” said Digital
Ally’s CEO, Stanton Ross. “To date, every court and every judge
that has examined the validity of these auto-activation patents has
confirmed their strength and found them valid,” continued Ross.
“The finish line is finally near and we look forward to a jury
confirming what we have alleged all along; TASER has willfully
infringed our ‘452 Patent and is benefiting in the marketplace at
our expense,” concluded Ross.
About Digital Ally
Digital Ally®, 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
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Contact InformationStanton Ross, CEOTom
Heckman, CFODigital Ally, Inc913-814-7774
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 WatchGuard
including 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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