Hesai Group (“Hesai” or the “Company”) (NASDAQ: HSAI), the global
leader in the automotive lidar market, today announced that the
U.S. International Trade Commission (“ITC”) terminated an
investigation of alleged patent infringement (the “ITC Action”)
that was commenced by Hesai’s competitor Ouster (NYSE: OUST). On
October 10, 2023 the ITC Commissioners affirmed an August 24, 2023
initial determination by the presiding ITC Administrative Law Judge
granting Hesai’s motion to terminate the ITC Action.
Hesai has always believed all of Ouster’s
infringement allegations are baseless and lack merit. Hesai's lidar
products are independently developed, based on years of research
and engineering investment, not stolen IP. Ouster wrongly sued
Hesai in contravention of its merger partner Velodyne's patent
cross-licensing agreement with Hesai which binds the combined
Ouster/Velodyne entity. Ouster's arguments that it is not bound by
the previous patent cross-licensing agreement was both legally and
ethically incorrect. Hesai has fully abided by the agreement, but
Ouster tried to escape its legal obligations.
Further, In Ouster’s previous public statement,
Ouster made completely baseless accusations regarding Hesai's
motives. Hesai is an ethical player in the lidar market. The
Commission terminated the ITC Action because the prior agreement
specified disputes should be arbitrated, not submitted to Courts or
the ITC. It is irresponsible and misleading for Ouster to
characterize Hesai’s motion to terminate as an attempt to avoid a
ruling on the merits. The fact that the Commission affirmed the
Administrative Law Judge's order granting Hesai's motion to
terminate demonstrates that Hesai's motion was meritorious, and
Ouster's assertions were baseless complaints from a company
unwilling to honor agreements to which it is bound. We welcome
arbitration since that dispute resolution forum will hear the same
legal issues in the patent cross-licensing agreement upon which
Hesai has already prevailed in the ITC final ruling.
Correcting false allegations about
Hesai:
As a result of its failure to compete effectively
in the lidar marketplace against Hesai and its continuing legal
setbacks, Ouster is turning to political lobbying as its last
resort. Ouster has been availing itself of the political and
regulatory avenues by spreading xenophobic misinformation and
proffering false claims through its lobbyists and media agents,
spending over $800,000 in lobbying fees alone since last year.
Specifically, Ouster lobbyists are making the
rounds in the media and in Washington, D.C., falsely alleging that
Hesai lidars potentially pose a data security and privacy risk, are
a national security risk to the U.S., and that Hesai is controlled
by the Chinese government. These baseless allegations are
patently false.
On data security, privacy and national
security concerns:
Hesai lidars do not – indeed cannot – pose a
national security or privacy threat. They do not have wireless,
cellular, or Bluetooth capabilities. Data transmission is one-way
only via a secure cable from the lidar to the vehicle; the data
never returns to the lidar. Hesai lidars do not have the memory and
mechanism to store even a second of an image. Simply put, Hesai
lidars are superior devices that allow a vehicle to sense its
surroundings, enhancing safety and reliability, but they do not
store information. The vehicles’ onboard computer owns all of the
data and Hesai owns no data. In fact, Hesai is the first lidar
company in the world that has been certified by ISO 21434 for high
automotive cybersecurity. Please see the infographic below that
explains how data is securely transmitted to the vehicle:
https://www.globenewswire.com/NewsRoom/AttachmentNg/119f3aa3-4522-41df-9b45-fb18e1cd1bcb
Further, Hesai lidars do not capture human facial
features or any other identifying biometric data, as shown below in
actual point cloud images. It cannot be used for facial recognition
or personal information identification. For this reason, lidars are
much preferred to cameras to protect privacy. Lidar scans in 3D
instead of 2D like a camera, and lidars can see in poor weather and
in low and no light. In other words, lidars are an ideal sensor
option for saving human lives while safeguarding privacy.
Real point cloud images taken by Hesai lidar:
https://www.globenewswire.com/NewsRoom/AttachmentNg/98b9339a-3ee6-4a59-ab50-349ec66cf4c3
https://www.globenewswire.com/NewsRoom/AttachmentNg/f62a6498-cc6a-4163-bf7b-8ac2eea9a02a
On military use:
Hesai lidars are designed for civilian use only.
All of our products are classified as EAR99, meaning they are not
suitable for military applications. To further guarantee our
products' civilian use, our sales agreements with new customers
prohibit the sale of Hesai lidars to the military.
It is possible of course for a hardware product to
flow beyond the original commercial restriction or purchaser
without the manufacturer's consent and knowledge. For example,
militaries around the globe might have access to American products
like a smart phone or a laptop, which are then used tangentially by
military actors regardless of whether the phone or laptop makers
sold the products directly.
We are not aware of any such military uses of Hesai
lidars.
On government control and
investment:
Hesai has zero investment from any
government or sovereign funds —— Hesai is a commercial entity
supported by customers seeking the very best lidar technology. The
Chinese government and the Chinese Communist Party have had
absolutely no intervention in Hesai’s operations or management.
Hesai is a publicly traded, private company that makes its own
business decisions in the best interest of its employees and
shareholders.
On competition:
According to the latest report from Yole
Intelligence, an independent French market intelligence firm, Hesai
is the market leader with 67% of the robotic car lidar market in
2022. This is because our lidars are higher performing and of
superior quality than offerings from our competitors not because
they are lower priced. Hesai lidars are, in fact, higher priced
than almost all of our competitors but are preferred by customers
because their superior performance and quality, especially in
mission-critical environments where safety is paramount. For
example, in the emerging Advanced Driver Assistance (ADAS) lidar
market for passenger cars, several of our ADAS competitors won
early nominations with leading global automakers from 2017-2021,
but to date have not delivered series production lidars to their
OEM customers. On the other hand, Hesai became the first lidar
maker to begin shipping mass production, high performance ADAS
lidars to the marketplace having delivered over 60,000 ADAS lidars
in 2022 and estimating around 190,000 to 200,000 ADAS lidars in
2023. This was the result of our relentless focus on innovation,
performance, and high quality.
To summarize:
-
Hesai lidars are not a data security or privacy risk.
-
Hesai lidars do not store and cannot wirelessly transmit data.
-
Hesai lidars are not sold to the military, but are designed and
built for civilian commercial use in vehicles to save lives.
- The
Chinese government does not own shares in Hesai nor has it sought
to influence Hesai’s business or management.
-
Hesai does not steal or infringe on any parties’ IP.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “confident,”
“potential,” “continue” or other similar expressions. Among other
things, the business outlook and quotations from management in this
announcement, as well as the Company’s strategic and operational
plans, contain forward-looking statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including but not limited to statements about the
Company’s beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company’s goals and strategies; the Company’s future business
development, financial condition and results of operations;
expected changes in the Company’s revenues, costs or expenditures;
the trends in, expected growth and the market size of the ADAS,
autonomous mobility and robotics industries; the market for and
adoption of LiDAR and related technology; the Company’s ability to
produce high-quality products with wide market acceptance; the
success of the Company’s customers in developing and
commercializing products using its solutions, and the market
acceptance of those products; the Company’s ability to introduce
new products that meet its customers’ requirement; the Company’s
expectations regarding the effectiveness of its marketing
initiatives and the relationship with its third-party partners;
competition in the Company’s industry; the Company’s ability to
recruit and retain qualified personnel; relevant government
policies and regulations relating to the Company’s industry; the
Company’s ability to protect its systems and infrastructures from
cyber-attacks; general economic and business conditions globally
and in China; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in the Company’s filings with the SEC. All information
provided in this press release and in the attachments is as of the
date of this press release, and the Company undertakes no
obligation to update any forward-looking statement, except as
required under applicable law.
About Hesai
Hesai Technology (Nasdaq: HSAI) is a global leader
in lidar solutions. The company’s lidar products enable a broad
spectrum of applications including passenger and commercial
vehicles with Advanced Driver Assistance Systems (ADAS), autonomous
driving vehicles, and robotic applications such as last-mile
delivery robots and AGVs. Hesai seamlessly integrates its in-house
manufacturing process with lidar R&D and design, enabling rapid
product iteration while ensuring high performance, high quality and
affordability. The company has superior R&D capabilities across
optics, mechanics, electronics, and software. Hesai has established
offices in Shanghai, Palo Alto and Stuttgart, with customers
spanning over 40 countries.
For media inquiries, please
contact:
Hesai GroupConnie Su, Senior Marketing
DirectorEmail: suyu@hesaitech.com
Source: Hesai Group
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