SOURCE: e.Digital Corporation

August 22, 2013 14:08 ET

e.Digital Provides Update on Recent Court Ruling

SAN DIEGO, CA--(Marketwired - Aug 22, 2013) - e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today provided an update regarding the recent court ruling on defendants' motion to apply the collateral estoppel doctrine in e.Digital's recent string of cases to enforce its Flash-R™ patent portfolio.

In connection with its continuing effort to bring potential infringers in line with the Company's licensing programs, e.Digital filed several law suits in the Federal Court in and for the Southern District of California. Many of the defendants filed a joint motion requesting the judge to prevent the Company from relitigating the meaning of certain terms of the Company's US Patent No. 5,491,774 ("the '774 patent") as defined by the judge in the Company's 2010 Colorado litigation. The Company's law firm, Handal & Associates, opposed the motion on various grounds, not the least of which is that the Colorado court was unable to consider subsequent re-examination proceedings before the U.S. Patent and Trademark Office related to the patent that resulted in modified claim language and which would have provided guidance to the Court as to the proper interpretation of the claims. 

A hearing was held before the Hon. Judge Dana Sabraw on July 26, 2013. The judge heard the arguments of counsel for both sides and on August 21, 2013 granted the motion. Although the ruling could adversely impact e.Digital's efforts to establish patent infringement of certain claims by certain defendants of the '774 patent and US Patent No. 5,839,108, the ruling has no apparent impact on the Company's assertions of patent infringement against the defendants under the Company's US Patent No. 5,742,737, and US Patent No. 5,842,170 which are also asserted in the cases.

"e.Digital has asserted multiple claims arising out of different patents in our Flash-R patent portfolio against the Defendants in the current round of litigation," said Fred Falk, president and CEO of e.Digital. "Our cases do not therefore rise or fall on the back of any one patent. Handal & Associates and their technical advisors have deemed that the Defendants infringe several of our patents, and a finding of infringement on any one claim of any one of them would be significant. Regardless of the ruling, the enforcement of our patents will move forward," Falk concluded.

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.