DIGITAL ALLY BEATS TASER’S LAST-MINUTE ATTEMPT TO ADD A NEW INVALIDITY THEORY TO THE CASE
October 31 2018 - 7:00AM
Court denies Axon’s attempt to add a defense
proposing Digital Ally’s own prior products invalidate its
auto-activation patent
Digital Ally, Inc. (NASDAQ: DGLY) Digital Ally, which
develops, manufactures and markets advanced video surveillance
products for law enforcement, homeland security and commercial
applications, is pleased to announce that its case against Axon
Enterprise, Inc. (formerly known as TASER International, Inc.)
continues its march toward trial. Axon, having lost an ex parte
reexamination challenge, four different inter partes review (IPR)
challenges in the U.S. Patent and Trademark Office, and one
post-grant review challenge against Digital Ally’s law enforcement
patent portfolio, continued its desperate search for evidence to
invalidate Digital Ally’s auto activation patent in an effort to
avoid liability for Axon’s alleged infringement. Axon’s latest
effort was an attempt to insert an entirely new invalidity defense
into the case. The United States District Court for the District of
Kansas rejected Axon’s request yesterday, severely limiting the
prior art Axon can present at trial.
On the last day of discovery in the case, Axon
sought to amend its invalidity contentions to add a previously
unidentified theory. Curiously, this theory was based on Digital’s
own patented in-car products that were disclosed to and considered
by the Patent Office when it granted the auto-activation patent.
Denying Axon’s motion, the Court found that Axon “has failed to
show good cause for its belated request to amend its invalidity
contentions.”
With this denial and Axon’s prior losses at the
Patent Office, the body of prior art available at trial is now
severely limited. A scheduling conference to set a trial date is
set for January 16, 2019.
“Axon’s plan from the beginning has centered on
invalidating our patents,” said Digital Ally’s CEO, Stanton Ross.
“We have defeated each one of these attempts,” continued Ross. “It
is clear Axon wants to avoid answering for its conduct in front of
a Kansas jury, but we remain committed to holding Axon accountable
for its actions and the harm it has caused Digital, its
shareholders and employees,” concluded Ross.
About Digital Ally
Digital 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.
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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: whether the Company will achieve
positive outcomes in its litigation with Axon and competition from
larger, more established companies with far greater economic and
human resources. 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",
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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 six months ended June 30, 2018,
filed with the Securities and Exchange Commission.
Contact Information
Stanton Ross, CEOTom Heckman, CFODigital Ally,
Inc.913-814-7774info@digitalallyinc.com
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