Digital Ally, Inc. (NASDAQ:DGLY)
Shares of Digital Ally, Inc. (NASDAQ:DGLY) rallied by 29.23% in Friday’s trading session after the company announced a significant victory in its legal battle against Axon Enterprise Inc. (NASDAQ:AAXN). On July 6, 2017, the U.S Patent Office denied Axon request for inter parties review of Digital Ally’s Patent No 9,253,452 in an ongoing litigation.
Patent Office Ruling
Digital Ally, Inc. (NASDAQ:DGLY) develops and sells digital video imaging and storage products commonly used by Law enforcement agencies. The company’s product are also used for commercial applications both in the U.S and abroad. Some of its products include in-car audio and video recording devices. The company also owns a system dubbed, VuLink that provides law enforcement with audio and video surveillance from various vantage points.
The Patent Office stated that Axon Petition does not in any way establish a reasonable likelihood of showing unpatentability of any of the challenged claims in the Petition. The Patent in question details the automatic activation and Coordination of multiple recording devices.
The invention eliminates the need of having to manually activate devices when law enforcement responds to an emergency. According to Digital Ally, Inc. (NASDAQ:DGLY), its technology will guarantee all evidence in a crime scene is visually captured even if officers forget to activate their cameras.
“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 U.S. District Court against Axon, which had been stayed pending the Patent Office IPRs,” said Digital Ally CEO, Stanton E. Ross
Digital Ally, Inc. (NASDAQ:DGLY) is planning to move its petition against Axon to trial where it hopes a jury will put to an end to the patent infringement.
SightDeck Technology Acquisition
Separately, Digital Ally, Inc. (NASDAQ:DGLY) is in the process of purchasing a new special effects technology that it plans to use to expand its market. The company has signed a letter of intent to buy SightDeck technology from iMatte Inc. The technology in question is designed to produce theater quality special effects whenever real time integration of graphics is needed.
Under terms of the agreement, Digital Ally, Inc. (NASDAQ:DGLY) is proposing to pay iMatte 6% revenue from all the products sold using the SightDeck technology for three years.
Separately, Alliqua Biomedical is currently under investigation by law firm, Purcell Julie & Lefkowitz LLP over a potential breach of fiduciary duty involving the board of directors.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.