SOURCE: e.Digital Corporation

e.Digital Corporation

February 23, 2015 10:00 ET

Court Rules in Favor of e.Digital

Reports Favorable Claim Construction Ruling

SAN DIEGO, CA--(Marketwired - February 23, 2015) - e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, announced today that the United States District Court for the Southern District of California ruled favorably on all points addressed in a Markman hearing on the Company's US Patent No. 5,839,108 ("the '108 patent") held on February 19, 2015. The '108 patent relates to the way modern day flash memory devices store and manage data and is an important part of e.Digital's Flash-R™ patent portfolio.

A Markman hearing is an important pre-trial event in a patent lawsuit wherein the Court analyzes and construes the meaning of disputed patent claim terms after consideration of each party's evidence. A favorable claim construction determination is very important in establishing infringement of an asserted patent. The Company and Micron Technology, Inc., each presented evidence addressing the proper construction of six disputed claim terms in the '108 patent. The Court was also asked to determine if the preamble from Claim 1 of the '108 patent was limiting. After consideration of each party's evidence, the Court issued its claim construction order last Friday, ruling in e.Digital's favor on the contested claim terms, and also finding that the preamble was not limiting.

"We believe this process has further vindicated our efforts to enforce infringement of our patents," said Fred Falk, president and CEO of e.Digital. "For the second time in as many months, our counsel, Handal & Associates, strengthened our litigation position by prevailing in the construction of claim terms of our '108 patent. We believe that this and other recent favorable rulings will encourage license and settlement by those who might use our technologies without our approval," added Falk.

"We have also developed and own other key intellectual properties in the security space and we are continuing research given the high profile need for reliable digital security technologies. We plan to continue to develop and monetize, through licensing and aggressive patent enforcement, our ground-breaking innovations," concluded Falk.

About e.Digital Corporation: For more than 25 years, e.Digital's ideas and inventions have impacted the evolution of consumer products. Today, e.Digital innovations, including its Flash-R™ portfolio of flash memory-related patents, and Nunchi® portfolio, are essential to many portable consumer electronic products. For more information about e.Digital, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: This press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that expectations are based upon reasonable assumptions, there can be no assurances that goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include the substantial uncertainties inherent in pursuing patent enforcement activities including, but not limited to the risks and costs of litigation and support activities, the timing and amount of settlements/licenses if any, the acceptance of existing and future products and technologies, the difficulty of commercializing and protecting new technology such as the Company's Nunchi, microSignet and other technologies, the impact of competitive products, technologies and pricing, general business and economic conditions, and other factors detailed in the Company's Annual Report on Form 10-K and other periodic reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.