Digital Ally Intends to Appeal Adverse Decision in Litigation with Axon
June 18 2019 - 07:30AM
Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and
markets advanced video surveillance products for law enforcement,
homeland security and commercial applications, announces its intent
to appeal an adverse decision from the U.S. District Court for
Kansas in its patent litigation with Axon.
Yesterday, the Court accepted Axon’s
mischaracterization of the Digital Ally’s patent claims, ruled that
the accused products do not infringe and granted Axon’s motion for
summary judgment. The Court’s analysis in its confidential order
turned on what the Company believes is an incorrect and mistaken
interpretation of the patent claims that Axon advanced in an
attempt to avoid liability. Construing patent claims is an often
difficult process the Court must conduct before the question of
infringement may be presented to the jury. Axon advanced a theory
that invited the Court to commit reversible error by
misinterpreting the patent claims in an effort to distinguish its
own products. Unfortunately, the Court accepted Axon’s view and
dismissed the lawsuit on this basis.
Importantly, the Court’s ruling did not find
that Digital’s ‘452 Patent was invalid. It also did not address any
other issue, such as whether Digital’s requested damages were
appropriate, and it does not impact the Company’s ability to file
additional lawsuits to hold other competitors accountable for
patent infringement. This ruling solely related to a mistaken
interpretation of the claims as they relate to Axon and was
unrelated to the supplemental briefing Digital recently filed on
its damages claim and the WatchGuard settlement. Those issues are
separate and the judge’s ruling on summary judgment had nothing to
do with Digital’s damages request. The Company is confident the
appellate court will not be similarly confused and will reverse
this decision.
“We are certainly disappointed with the Court’s
misreading of our patent rights, but we remain confident that the
ruling will be reversed on appeal,” said Digital Ally’s CEO,
Stanton Ross. “Axon misled this Court and convinced the judge to
take an overly narrow view of our patent,” continued Ross. “We
highly doubt the Court of Appeals for the Federal Circuit will be
similarly misled. Our groundbreaking auto-activation patent
portfolio has survived numerous challenges, and we intend to pursue
every available legal avenue to hold Axon and other competitors
accountable for using our patented technology. While we pursue our
appeal, we will continue with our business strategy to roll out new
and innovative products, such as our EVO-HD,” concluded Ross.
About Digital AllyDigital
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 visit
www.digitalallyinc.com or follow us on Twitter @digitalallyinc and
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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 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
Court of Appeals for the Federal Circuit will rule in the Company’s
favor in its appeal; whether the Company will ultimately prevail in
its patent litigation against Axon and achieve its objectives;
competition from larger, more established companies with far
greater economic and human resources; the effect of changing
economic conditions; its ability to attract and retain customers
and quality employees; and changes in government regulations, tax
rates 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, 2018, and in its Quarterly Report on Form 10-Q for the
three months ended March 31, 2019, as filed with the Securities and
Exchange Commission.
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