The U.S Patent and Trademark Office (USPTO) handed Digital Ally, Inc. DGLY 2.46% a major legal victory on Wednesday, issuing a final decision invalidating the majority of the claims against Ally after a nearly two-year legal battle with Utility Associates Inc. Digital Ally is a developer, manufacturer and marketer of advanced law enforcement video surveillance products, and the dispute centered on Utility’s U.S. Patent No. 6,831,556.

The Claims

Utility claimed that the patent applies to all mobile surveillance systems capable of capturing video, audio and other data, but Digital Ally argued that the claims in the patent were unpatentable. The USPTO mostly ruled in favor of Digital Ally, declaring that 23 of the 25 claims asserted in the patent were invalid.

The ruling means that it is now highly unlikely that Utility will be able to further pursue patent infringement charges against Digital Ally, which believes that the final two claims are not applicable to Digital’s business.

Digital Ally Fires Back

In a statement following the ruling, Digital Ally CEO Stanton Ross explained…

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