The US District Court of Delaware has adopted a Report and Recommendation denying Shure’s motion for a preliminary injunction (PI Motion) to stop the sale of ClearOne’s Ceiling Tile Beamforming Mic Array (BMA CT) and Ceiling Tile Beamforming Array (BMA CTH) products.
In April 2019, Shure filed a motion for a temporary restraining order (TRO) to stop sales of ClearOne’s BMA CTH products. The Honourable Christopher J. Burke recommended denial of Shure’s TRO, finding that Shure had failed to show that it would suffer irreparable harm in the absence of injunctive relief and that ClearOne had raised a “substantial question” as to the validity of the patent Shure asserts against ClearOne, D865,723 (the “’723 patent”).
Shure proceeded with its PI Motion and, in September 2020, Judge Burke heard the parties’ arguments and testimony from both ClearOne and Shure witnesses at a remote hearing.
On January 20, 2021 Judge Burke issued his recommendation to deny the PI Motion; on February 8, 2021 Judge Andrews adopted that report and recommendation and held that Shure’s “motion for a preliminary injunction is denied”.
The Court did not grant the requested preliminary injunction, in part, because it found that ClearOne’s “lackluster sales” do not support a claim that Shure will be substantially and immediately harmed absent a preliminary injunction.
ClearOne and Shure have both offered commentary on the court order issued by the Honorable Richard G. Andrews.
“This is another victory for ClearOne against Shure’s retaliatory litigation in Delaware,” said Zee Hakimoglu, ClearOne chair and CEO. “ClearOne is pleased that the Court denied Shure’s PI Motion and that ClearOne’s revolutionary BMA CT and BMA CTH products will remain available to customers. ClearOne will continue providing new and exciting solutions for the market, such as its new BMA 360, while ensuring that competitors like Shure are held to account when they do not respect ClearOne’s intellectual property rights.”
Shure stated: “Rather than competing fairly, ClearOne responded to Shure’s successful launch of its innovative MXA product line by releasing its own product mimicking the MXA910. In an effort to promote its infringing product, ClearOne decided to mislead the marketplace – which includes customers of both companies – by making false and misleading statements about Shure’s products. Shure welcomes the opportunity to present our claims against ClearOne to a jury later this year. We are confident that when presented with the facts, the jury will agree that ClearOne’s BMA CT product infringes on our ‘723 design patent and that ClearOne spread false claims in the marketplace to intimidate and confuse customers.”