SOURCE: e.Digital Corporation

October 09, 2013 10:30 ET

e.Digital Appeals Collateral Estoppel Court Ruling

SAN DIEGO, CA--(Marketwired - Oct 9, 2013) - e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced that it has, through its law firm Handal & Associates, filed a notice of appeal to the Federal Circuit Court of Appeals, formally challenging the ruling by the Honorable Judge Dana Sabraw to apply the collateral estoppel doctrine in e.Digital's recent string of cases to enforce its Flash-R™ patent portfolio.

e.Digital filed multiple law suits in the Federal Court in and for the Southern District of California asserting claims of patent infringement against several companies. The defendants as a group filed a joint motion asking the District Court to prevent the Company from relitigating the meaning of certain terms of the Company's US Patent No. 5,491,774 ("the '774 patent") and US Patent No. 5,839,108 ("the '108 patent") as defined by the judge in the Company's 2010 Colorado litigation against a separate group of defendants. The Company's law firm opposed the motion on a number of grounds. If successful, the Company's appeal will require the District Court to take a fresh look at the meaning of those claim terms and allow e.Digital to argue a different meaning of certain claim terms in light of, among other things, proceedings before the U.S. Patent and Trademark Office that took place after the conclusion of the Colorado case. A reversal of Judge Sabraw's collateral estoppel ruling could also have a substantial impact on unresolved cases by potentially requiring the Court to hold a new claim construction hearing on the disputed terms of the '774 patent and the '108 patent.

"e.Digital takes very seriously its obligations to its shareholders and will therefore take every step it can to defend the Company's intellectual properties," said Fred Falk, president and CEO of e.Digital.

About e.Digital Corporation: For more than 20 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, are essential to many portable consumer electronic products. The Company pioneered dedicated portable in-flight entertainment systems and more than 30 airlines have made e.Digital powered products their in-flight entertainment choice. For more information about e.Digital, please visit: www.edigital.com.

Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, our ability to protect and monetize our IP portfolio, expected future developments and other factors that we believe are appropriate under the circumstances. These forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the Company operates. Actual outcomes and results may differ materially from what is expressed or implied by the forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed with the Securities and Exchange Commission ("SEC"). e.Digital Corporation disclaims any intent or obligation to update these or any forward-looking statements, except as otherwise specifically stated by it.