Shares of video surveillance product company Digital Ally, Inc. rose about 30% after it announced “a significant victory” in its legal battles against Axon Enterprise, formerly known as Taser International.
Digital Ally said the US Patent Office denied Axon’s petition for inter partes review (IPR) of Digital’s Patent No. 9,253,452.
The ‘452 patent generally covers the automatic activation and coordination of multiple recording devices in response to a “triggering event” such as a law enforcement officer activating the light bar on the vehicle.
“The Patent Office rejected every single ground of invalidity that Axon put forward challenging claims 7-10 and 20,” said Digital Ally.
“These are the exact claims at issue in Digital’s litigation against Axon.
“The Patent Office further found that ‘… the information presented [by Axon] in the petition does not establish a reasonable likelihood that [Axon] would prevail in showing the unpatentability of any of the challenged claims on the grounds set forth in the petition’.”
Digital CEO Stanton Ross said: “We are extremely pleased with the patent office’s decision to confirm the validity of our ‘452 patent.
“It is unfortunate that Axon continues to raise these baseless validity arguments to avoid a clear case of willful infringement.
“We remain committed to defeating Axon’s arguments and ultimately winning this lawsuit.
“We look forward to restarting our patent infringement litigation in US District Court against Axon, which had been stayed pending the patent office IPRs.
“We will now take the necessary actions to move to a trial where a jury can finally end Axon’s willful infringement and assess damages due to us.”
bezinga.com quoted Axon spokesperson Sydney Siegmeth as saying in response: “While we are disappointed that the patent office has denied institution of Axon’s petition for inter partes review on some claims of one of Digital Ally’s two patents-in-suit, this process is far from over …
“Digital is simply wrong that this USPTO decision ends the validity challenge to the ‘452 patent …
“Digital has a very difficult burden to prove infringement and the fact remains that Axon’s Signal technology does not infringe Digital’s patents.
“There are many more hurdles for Digital to overcome before any issue of damages could even be considered.
“Axon remains confident in our invalidity and non-infringement position.”