By dropping its appeal, Axon concedes the validity of the ‘292 Patent and has no further pending Patent
Office challenges to Digital’s patents
Lenexa, KS, Dec. 20, 2018 (GLOBE NEWSWIRE) -- 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 visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc
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Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc
913-814-7774
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.
