Court Holds Shure in Contempt of Preliminary Injunction Order
September 02 2020 - 7:55AM
ClearOne (NASDAQ: CLRO), a leading global provider of audio and
visual communication solutions, comments on the order issued
yesterday by Judge Edmond E. Chang of the U.S. District Court of
the Northern District of Illinois holding that “Shure has violated
the preliminary injunction order and is found in contempt because
it designed the MXA910-A in such a way that allows it to be easily
installed flush in most ceiling grids” (the “Contempt Order”).
The “preliminary injunction order” referenced (the “PI Order”)
is the August 2019 Order that enjoined Shure from, among other
things, “manufacturing, marketing, and selling the MXA910 in a way
that encourages or allows integrators to install it in a
drop-ceiling mounting configuration” in a way that infringes
ClearOne’s U.S. Patent No. 9,813,806 (the “’806 Patent”). In
response to that Order, Shure released the MXA910-A, claiming
publicly that “[t]he Court ruled on November 3, 2019, that the new
MXA910W-A is not included under the preliminary injunction.”
In the Contempt Order, the Court corrected Shure: “[T]he record
is clear and convincing that Shure—through its design
choices—violated the injunction order by allowing integrators to
install the MXA910-A in the enjoined flush configuration.”
Ultimately, the Court ordered that “Shure shall no longer
manufacture, market, or sell the MXA910-A…”
In addition, the Court held that “[t]he record is also clear as
to the MXA910-60CM, but in an abundance of caution, the Court will
refrain from granting that aspect of the contempt motion to allow
for additional discovery” on that and the “possibility that Shure
also violated the preliminary injunction order” by “pushing” sales
of the MXA910 immediately after the issuance of the PI
Order—discovery to which ClearOne would not have otherwise been
entitled.
“We believe that this Contempt Order finally
puts to bed Shure’s claim that the MXA910-A is not subject to the
PI Order,” said Zee Hakimoglu, CEO and Chair of ClearOne.
“The Order —rightfully in my view—described
Shure’s efforts with the MXA910-A as ‘not fully in the spirit of a
good-faith design around’ and concluded that Shure ‘either gave
dishonest information to [its own] counsel or was negligent in the
extreme in providing that information.’ ClearOne is pleased
that the Court continues to hold Shure responsible for its unlawful
conduct, and we will continue to vigorously pursue all available
legal remedies to defend our strategic patents from infringement,”
Hakimoglu concluded.
ClearOne’s motion to accuse Shure’s MXA910-US of
infringing the ’806 Patent is still pending with the Court.
The case number in the U.S. District Court of
the Northern District of Illinois is 17-cv-3078.
About ClearOne
ClearOne is a global company that designs,
develops and sells conferencing, collaboration, and network
streaming solutions for voice and visual communications. The
performance and simplicity of its advanced, comprehensive solutions
offer unprecedented levels of functionality, reliability, and
scalability. Visit ClearOne at www.clearone.com.
Printable releases are available in our Investor
Relations area at http://investors.clearone.com.
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