AXON ENTERPRISES (TASER) ACKNOWLEDGES THE VALIDITY OF DIGITAL’S AUTO-ACTIVATION ‘292 PATENT BY DISMISSING ITS APPEAL
December 20 2018 - 08:00AM
By dropping its appeal, Axon concedes the
validity of the ‘292 Patent and has no further pending Patent
Office challenges to Digital’s patents
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 a major victory in its legal battles against Axon
Enterprise, Inc. (“AXON,” formerly known as Taser International,
Inc.). After losing its validity challenge at the U.S. Patent
Office for Digital Ally’s Patent No. 8,781,292 (“the ‘292 Patent”),
AXON has decided to abandon its appeal and discontinue all
remaining attacks against the ‘292 Patent.
AXON 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. Three of those four petitions were
rejected outright by the Patent Office. After agreeing to take a
closer look at the fourth petition, and after a full proceeding and
oral argument on the matter, the Patent Office found all challenged
claims of the ‘292 Patent to be valid. AXON appealed this finding
to the United States Court of Appeals for the Federal Circuit.
On December 17, 2018, AXON withdrew its appeal
and discontinued all efforts to invalidate the ‘292 Patent. On
December 19, 2018, the Federal Circuit granted AXON’s request and
dismissed the appeal. With this dismissal, the Patent Office’s
finding that the ‘292 Patent is valid will remain unchallenged and
in full effect. Axon is now barred from filing any further IPRs
against the ‘292 Patent, as well as the ‘452 Patent.
Enforcement Video, LLC (d/b/a WatchGuard Video)
(“WatchGuard”) had previously agreed to be bound by Axon’s IPR
attempt to invalidate the ‘292 Patent. The dismissal also means
that WatchGuard’s ability to challenge the validity of the ‘292
Patent is now severely limited. Like Axon, WatchGuard is now barred
from filing any further IPRs challenging any of the patents
asserted against it.
“This decision was a major triumph for our team
at Digital who worked so hard to develop this auto-activation
technology,” said Digital Ally’s CEO, Stanton Ross. “To see Axon
abandon its efforts to invalidate the ‘292 Patent was a tremendous
confirmation of our hard work and position as the innovator of this
technology,” continued Ross. “We are excited about moving our
litigation against Axon and WatchGuard towards trial and having a
jury hold both Axon and WatchGuard accountable for their
infringement of our auto-activation patent,” Ross
concluded.
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; 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 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, 2017 and quarterly report on Form 10-Q for
the three and nine months ended September 30, 2018, as filed with
the Securities and Exchange Commission.
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