Digital Ally Files Suit to Halt Threats of Alleged Patent Infringement by
Utility Associates, Inc.
LENEXA, KS -- (Marketwired) -- 10/28/13 -- Digital Ally, Inc.
(NASDAQ: DGLY), which develops, manufactures and markets advanced
video surveillance products for law enforcement, homeland security
and commercial applications, today announced that it has filed a
lawsuit to eliminate threats by Utility Associates, Inc. ("Utility")
of alleged patent infringement regarding U.S. Patent No. 6,831,556
(the '556 patent).
Utility has recently mailed letters to current and prospective
purchasers of Digital Ally's mobile video surveillance systems
threatening that the use of such systems purchased from third parties
not licensed to the '556 patent would create liability for patent
infringement. Digital Ally rejects Utility's assertion and will
vigorously defend the right of end-users to purchase such systems
from providers other than Utility.
On October 25, 2013, Digital Ally filed a Complaint in the United
States District Court for the District of Kansas, seeking a
declaration that Digital Ally's advanced mobile video surveillance
systems do not infringe any claim of the '556 patent. In addition,
Digital Ally will be taking steps to invalidate the '556 patent
through appropriate procedures at the United States Patent and
"Digital Ally welcomes fair competition in the marketplace and will
vigorously defend its right to compete, as well as the right of
current and prospective customers to purchase its products, without
facing threats of alleged patent infringement," stated a Digital Ally
spokesperson. "Digital Ally believes that these rights will be
vindicated in the aforementioned proceedings."
About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced
technology products for law enforcement, homeland security and
commercial applications. The Company's primary focus is digital video
imaging and storage. For additional information, visit
The Company is headquartered in Lenexa, Kansas, and its shares are
traded on The Nasdaq Capital Market under the symbol "DGLY".
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 legal actions that the
Company is taking will achieve its objects; whether the actions taken
by Utility Associates, Inc. will have a negative impact on the
business of the Company; 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, 2012 and quarterly report on
Form 10-Q for the three and six months ended June 30, 2013, as filed
with the Securities and Exchange Commission.
For Additional Information, Please Contact:
Stanton E. Ross
RJ Falkner & Company, Inc.
Investor Relations Counsel
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