HID Settles Bruising Litigation With WaveLynx
Mega access control manufacturer HID has now settled with upstart rival Wavelynx after bruising litigation HID commenced. Instead of backing down, WaveLynx counterclaimed (sued) HID alleging HID committed fraud.
The settlement, coming just months after WaveLynx aggressively moved to challenge the validity of key HID patents, is a win for WaveLynx, as HID has a long history of aggressive legal challenges against new entrants (e.g., recall HID Warns Against Unauthorized 'Parasitic' Devices and later Proxy Exiting Building Access Control Market).
More broadly, HID has been weakened by its massive product shortages over the last few years which are finally abating.
In this note, we examine the litigation, the settlement, and what this means for HID and Wavelynx.
Executive *******
** **** **** ** * *** for ********. ***** *** ********** ***** are *** *********, *** ****** ** the **** *** **** ** **** learned **** ******* ******** **** *** deal *** ********* ** ********.
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**** **** ****** ********, **** ****** companies *** ******** ** *** *************** *** ***** ** ******, ******** has ** *********** ** ****** * tougher ***** ** ***.
Challenges ****** ********
* *** ****** ***, ******** **** to *** ** ****** ******,****** * ***-**** ****************** ** ********** * *** *** patent:
******** ************ ****. (“**********”) ******** ***** partes ******(“***”) ** ****** *-*, *-**, 13-20, **-**, *** ** (*** “********** Claims”) ** *.*.****** **. *,***,***(“*** ’*** ******”) (******).
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***** ******* ****** ** * ****** means *** ****** ** ***** **** against ****** ** ********* *******, *.*.**** **** **** ** ********** * Avigilon ********* ****.
*** ****** ****** *** *** *** ruled ** ****. ** ******* **** WaveLynx **** ********* **** ****** ** part ** *** **********, ***** ** a ******* ** ***.
Fraud **********
*** **** ******** ****** ** ********'* countermove ** *** *** ***** *** ******** ******** **** *** *** ***** **** to ******** ***********, *.*. ********* ***-**** ************:
******* *** ******* ** *****************’ ********* and ***************, ********* *** ***** ********,the ’*** ****** *** ******** ******* ***** committed during prosecution before the U.S. Patent Office and, therefore, all claims of the ’862 patent are unenforceable. [emphasis added]...
***********, ***************** ***** **** ******* ******* both **** *** ’*** ****** ** invalid *** **** ** ***obtained ** ********** ***** on the U.S. Patent Office. [emphasis added]....
*** '*** ****** **** ****** *** obtained ** ********** ***** *** *** same *** ***** **** ****** ** invalidate.
** *** ************, ******** **** *******:
********************** ***, ** *********** *** ******, other **** ************* **** ********** ****** they ****** ** ******* *** ******* ’862 ******, ********** **** ****** **anti-competitive ****** by stifling the industry and extracting unwarranted royalties from competitors....
**** ******* ** *****************’ ****** ******* in *decades-long ****** ** *nfounded *** ******** ******** ** ****** *********** [emphasis added] ...
*** ****** ********** ******* *** ********.
Legal ****** *******
* **** **, ****, ***** ************** ** ******* ** *** *****:
********** *** ****** *********** *** **** ABLOY ** *** ********* ******** ************ Corporation ****** ********* *** ***** **** the *****-***** ******, ********* *** ******, counterclaims, *** ********, ** *************** **** prejudice, *** **** ***** ** **** its *** *********’ **** *** *****.
WaveLynx's ********
******** *** ***** *********** *** ****, ****** **** *** "*******":
** * ********* ** **** ***** their ****** *** ****** *****, ******** said:
******** *** ****** *** ****** ****** as *** ******** *** **** *** interoperable ****** ******* ************* *** ********. In *** **** * ***** ** have ********** * **.*% **** *** look ** ********** **** ****** **** the **** * *****. ** *** accomplishing **** ******* ******* *** *** business, ******** *** *** ******, ************ our ********** ******** *** ********* *** global ********* **** *** **** *** APAC *******.
*** ******* *** ******* **** ***** about **** **** **** ** ***** "the ****** ******" *** * *** giant ***, ********** **** "***** ** stand ** *** ****** *** ************ of ******* *** *********** ********."
* **.*% *-**** **** ** ********* a **** ****, ****** ****, ** definition **** * *** ****. *******, WaveLynx, ***** ***** ***** ******** ** HID, ** ******* *************.
******, ** ** ********,********'* ****** ********* *** **** ************ * *** ****** ********: