Digital Ally Files Supplemental Briefing with Court for Its Litigation with Axon
June 17 2019 - 8:43AM
Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and
markets advanced video surveillance products for law enforcement,
homeland security and commercial applications, announces that it
filed a supplemental briefing with the United States District Court
for the District of Kansas on Friday. The requested briefing
updates the Court on Digital’s recent settlement agreement with
WatchGuard as well as the supplemental expert report prepared by
its damages expert, showing how the WatchGuard agreement supports
Digital’s damages request against Axon.
The requested briefing additionally explains
that the supplemental expert report and the WatchGuard settlement
are new evidence that support denying Axon’s pending motions
challenging Digital’s damages theories. These theories calculate
damages of more than $68 million for certain Axon revenues realized
between February 2, 2016 and August 17, 2018. Because these
revenues continue to accrue, the Company will update its damages
request before it is presented to a jury. The Company further asks
the Court to treble damages based on allegations that Axon has
willfully infringed, which permits the Court to triple the
Company’s final updated damages figure. A ruling on these motions
is expected at some point in the future in advance of trial.
This supplement follows a string of victories
for Digital with its intellectual property. In April 2019, the
Company announced four new patents that it expects will be issuing
in the near future relating to further advancements in law
enforcement camera technology. This includes the “marking”
functionality in Patent No. 9,712,730 that is quickly becoming a
new feature requested by Law Enforcement Agencies across the
country. The ‘730 Patent is the same patent Axon previously sought
to cancel through a Post-Grant Proceeding at the U.S. Patent
Office. As with Axon’s prior ex parte reexamination request and
four previous inter partes review challenges at the Patent Office,
this request was also unsuccessful. Success at the Patent Office is
unprecedented. Despite average success rates of over 60% for Patent
Office invalidity challenges against this type of technology,
Digital has defeated all six challenges filed against its
patents.
“We have said from the beginning that we own the
fundamental patents for auto-activation of law enforcement
cameras,” said Digital Ally’s CEO, Stanton Ross. “The WatchGuard
settlement and repeated victories at the Patent Office confirm our
engineers’ hard work,” continued Ross. “The recent actions provide
further confirmation that we believe will help the judge and jury
see the true value of the technology that Axon has taken without
our permission,” 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 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: the schedule upon which the
Company’s litigation against Axon Enterprise, Inc. will proceed;
whether the Company will prevail in its patent litigation against
Axon; the amount of any damages that might be awarded to the
Company if it is successful in the litigation; whether the U.S.
Patent Office will issue four new patents to the Company relating
to relating to further advancements in law enforcement camera
technology; 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; 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, 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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