Digital Ally Announces Significant Development in Litigation Against Axon Enterprise, Inc.
November 20 2017 - 7:30AM
Digital Ally, Inc. (NASDAQ: DGLY) today announced that the Federal
District Court of Kansas has rejected the request of Axon
Enterprise, Inc. (“Axon,” formerly known as TASER International,
Inc.) to maintain the stay of the patent lawsuit brought by Digital
against it. With this significant ruling, the parties will now
proceed towards trial.
The U.S. Patent Office previously had rejected
Axon’s attempts to invalidate Digital’s Patent No. 9,253,452 (the
“’452 Patent”) through two separate petitions for inter partes
review (“IPR”). This was Axon’s final attempt to invalidate
the ‘452 Patent before the Patent Office. Despite its loss
before the Patent Office, Axon desperately sought to convince the
Court to maintain the stay of the litigation to avoid answering to
Digital and a jury for its willful infringement of Digital’s ‘452
Patent. On Friday, November 17, 2017, the Court rejected Axon’s
request and lifted the stay of the litigation. In ruling on the
motion regarding the stay, the Court found that the evidence
submitted by Digital “weigh heavily against continuing the stay of
the ‘452 patent” and that “the Court denies Defendant’s [Axon’s]
request to continue the stay of this case with respect to the ‘452
patent.” The Court has set a hearing for December 14, 2017, to
discuss a schedule for moving the case forward to trial. “We are
very pleased with the Court’s ruling. This is a significant win for
us that vindicates the positions we have taken,” said Digital’s
CEO, Stanton E. Ross. “The ‘452 Patent represents a pioneering
invention that has become or is quickly becoming a standard feature
utilized by the law enforcement industry. Axon has recognized the
value of the ‘452 Patent by incorporating our technology into its
products and then trying to justify its wrongful actions by
attempting to invalidate the Patent. With its efforts having been
rejected by the Patent Office, and the Court rejecting Axon’s
attempts to maintain the stay of the litigation, we can finally
move this case forward towards trial where Axon will have to answer
to a jury for its conduct. We hope these favorable rulings by
the Federal District Court and the Patent Office will clear the
confusion of the many customers who have relied upon Axon’s
assertions that it could deliver the auto-activation technology
covered by Digital Ally’s patents that Axon wrongfully incorporated
into its own products,” 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.
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 patent litigation against various parties,
including Axon Enterprise, Inc.; whether the Patent Office rulings
will curtail, eliminate or otherwise have an effect on the actions
of Axon and other parties respecting Digital Ally, its products and
customers; competition from larger, more established companies with
far greater economic and human resources; its ability to attract
and retain customers and quality employees; the effect of changing
economic conditions; 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 Digital’s disclosures. It 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. Digital Ally 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
Digital and its operations are contained in its annual report on
Form 10-K for the year ended December 31, 2016 and quarterly report
on Form 10-Q for the three and nine months ended September 30,
2017, as filed with the Securities and Exchange Commission.
Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc
913-814-7774
info@digitalallyinc.com
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