DIGITAL ALLY DEFEATS YET ANOTHER AXON CHALLENGE TO ITS LAW ENFORCEMENT PATENT PORTFOLIO


Axon’s loss is its sixth unsuccessful attempt to invalidate Digital’s patents.

Lenexa, KS, Oct. 02, 2018 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) Digital Ally which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, is pleased to announce is pleased to announce a new development in its ongoing legal battles against Axon Enterprise, Inc. (“Axon” formerly known as TASER International, Inc.). In yet another victory for Digital Ally, the Patent and Trademark Office rejected Axon’s most recent challenge to Digital’s law enforcement patent portfolio. This defeat is the latest in a string of six losses for Axon, having now filed six unsuccessful validity challenges with the Patent Office.

In this latest instance, Axon asked the Patent Office to invalidate Digital’s U.S. Patent No. 9,712,730 (“the ‘730 Patent”), which is not currently involved in any active litigation. Axon targeted the ‘730 Patent for unknown reasons. On October 1, 2018, the Patent Office rejected Axon’s latest challenge finding that “[u]pon consideration of [Axon’s] Petition and [Digital’s] Preliminary Response, we conclude that the information presented in the Petition does not demonstrate that it is more likely than not at least one of the challenged claims is unpatentable. Accordingly, we do not institute a post-grant review.” 

To date, Axon has filed an ex parte reexamination challenge, four different inter partes review (IPR) challenges, and one post-grant review challenge against various Digital Ally law enforcement patents. None were successful.

“The Patent Office’s recent decision on the ‘730 Patent confirms the strength of our patent portfolio,” said Stanton E. Ross, Digital Ally’s CEO. “We have repeatedly said that Digital Ally is the leading innovator of new and life-saving technology for law enforcement and this most recent decision of the Patent Office further justifies our beliefs. Our patent portfolio is strong, robust, and the envy of the industry. We remain hopeful that Axon will recognize our innovation and rightful ownership of our valuable intellectual property but, if not, we will continue our fight,” concluded Ross.

About Digital Ally

Digital Ally, Inc., 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.

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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; whether the Patent Office's granting of the new patents will curtail, eliminate or otherwise have an effect on the actions of Axon respecting the Company, its products and customers; and competition from larger, more established companies with far greater economic and human resources. 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 because 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 six months ended June 30, 2018, filed with the Securities and Exchange Commission.


            

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