Hong Kong, April 19, 2021 - 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”) in the United States.
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. In addition, SDNY issued a permanent injunction, enjoining uCloudlink Entities from selling certain models of Wi-Fi hotspot devices in the United States. (the “Injunction”).
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”). Pending decisions of the Federal Circuit, uCloudlink Entities had placed an amount equal to the damages ordered by SDNY in escrow.
On January 5, 2021, the Federal Circuit reversed the SDNY decision and held that “uCloudlink Entities are entitled to summary judgment of noninfringement.” Subsequently, SIMO filed a petition for panel rehearing and rehearing en banc on February 4, 2021, which was denied by the Federal Circuit on March 11, 2021. On March 29, 2021, the escrowed funds were fully refunded to uCloudlink Entities.
On April 8, 2021, SDNY issued an order lifting the Injunction against the products of uCloudlink Entities. As a result, uCloudlink’s manufacturing and selling of Wi-Fi hotspot devices in the United States will no longer be restricted and affected. Accordingly, uCloudlink Entities can provide more flexible solutions which will facilitate enhancing user experience with our products and services.
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