UCL Announces Progress in U.S. and China Patent Infringement Disputes

HONG KONG, Jan 13, 2021 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“uCloudlink” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced the latest developments in its patent infringement disputes with SIMO Holdings Inc. (“SIMO”) and/or its subsidiaries in the U.S. and China.

1.U.S. Patent Infringement Case

In 2018, SIMO sued Hong Kong uCloudlink Network Technology Limited and uCloudlink (America), Limited (collectively “uCloudlink Entities”) for infringing its U.S. Patent No. 9,736,689.The United States District Court for the Southern District of New York (“SDNY”) found for SIMO and ordered uCloudlink Entities to pay damages amounting to US$ 8,230,654.

Believing the trial judge erred in the construction of SIMO’s patent claims, uCloudlink Entities appealed the SDNY decision to the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”). On January 5, 2021, the Federal Circuit reversed the SDNY decision and held that “uCloudlink Entities are entitled to summary judgment of noninfringement”.

2.China Patent Invalidation Case 1

In 2018, Shenzhen Simo Wireless Technology Co., Ltd. (“Shenzhen SIMO”), one of SIMO’s affiliates in China, filed a lawsuit against Shenzhen uCloudlink Network Technology Co., Ltd. (“uCloudlink Shenzhen”) for infringing its PRC Patent No.200980103594.6 (the “594.6 Patent”). In response, uCloudlink Shenzhen applied to the China National Intellectual Property Administration (“CNIPA”) for invalidating the 594.6Patent.

In July 2019, CNIPA entered its decision which invalidated the 594.6 Patent. Dissatisfied with the CNIPA decision, Shenzhen SIMO appealed to the Beijing Intellectual Property Court (the “IP Court”) for judicial review. In December 2020, the IP Court entered its judgment which upheld CNIPA’s invalidation decision.

3. China Patent Invalidation Case 2

In 2019, Shenzhen uCloudlink Technology Limited sued Shenzhen Skyroam Technologies Co., Ltd. (“Shenzhen Skyroam”), one of SIMO’s affiliates in China, for infringing its PRC Patent No. ZL201410497366.4 (“366.4 Patent”) which is owned and licensed by Hong Kong uCloudlink Network Technology Limited. In response, Shenzhen Skyroam applied to CNIPA for invalidating the 366.4 Patent.

In September, 2020, CNIPA issued an order which invalidated the 366.4 Patent. Currently, Shenzhen uCloudlink Technology Limited is filing a lawsuit at the Beijing Intellectual Property Court to challenge CNIPA’s invalidation decision.

4.China Patent Invalidation Case 3

In April 2020, Shenzhen Skyroam Technologies Co., Ltd. (a PRC subsidiary of SIMO) applied to CNIPA for invalidating PRC patent No. 201610513352.6(the “352.6 Patent”) of Shenzhen uCloudlink Technology Limited.

In November 2020, CNIPA issued an order which invalidated the 352.6 Patent. Shenzhen uCloudlink Technology Limited is now preparing to file a lawsuit at the Beijing Intellectual Property Court to challenge CNIPA’s invalidation decision.