uCloudlink Provides Update on May 2019 Patent Infringement Case
September 3, 2019 -- UCLOUDLINK GROUP INC.("uCloudlink" or the "Company") today announced that on August 28, 2019, its wholly-owned subsidiaries, Hongkong uCloudlink Network Technology Limited and Ucloudlink (America) Ltd., received an injunction, issued by the Court of the Southern District of New York (“SDNY”), to “stop selling, offering to sell, importing, [and] enabling the use of devices” infringing on Patent US9736689 ( “’689 patent” ) in the United States, beginning on September 1, 2019. The infringing devices referenced in this case are portable Wi-Fi terminals series G2, G3, and U2, with software versions released before June 1, 2019, and World Phone series S1, with software versions released before August 1, 2019. uCloudlink believes it did not infringe on the ’689 patent and intends to file an appeal of the court ruling in the United States Court of Appeals for the Federal Circuit. The Company is represented by Fish & Richardson P.C., a leading global intellectual property law firm on this appeal case.
Beginning in May, uCloudlink has been releasing upgraded software versions for its back-end server, portable Wi-Fi terminals and World Phones. A notice was posted on the uCloudlink website at that time and can be found at: https://www.ucloudlink.com/html/20190831/318.html. As of the date of SDNY’s injunction, most of uCloudlink’s portable Wi-Fi terminals and World Phones in the United States are already running on the new software version. In order to prevent further disputes regarding infringement, uCloudlink will upgrade all portable Wi-Fi terminals in the United States with the new version of software released on or after June 1, 2019, and will upgrade all GlocalMe applications installed on World Phones in the United States to the new versions.
“uCloudlink strongly believes it did not infringe on the ’689 patent and plans to appeal the recent decision. In the meantime, we think the injunction by SDNY does not have significant impact on our global operations and as far as our business in the United States, the impact is negligible,” commented Mr. Gao Wen, Chief Sales Officer of uCloudlink.
“After installing the May and subsequent software upgrades to our back-end server, portable Wi-Fi terminals and World Phones, we believe that we will be in full compliance with the SDNY's order in the United States, our devices will not infringe on the ‘689 patent going forward, and the injunction will no longer be relevant to uCloudlink’s business in the United States,” concluded Mr. Gao Wen.