ClearOne Seeks Order Holding Shure in Contempt for Marketing and Selling the MXA910W-A in Violation of 2019 Preliminary Injunction

ClearOne (NASDAQ: CLRO), a leading global provider of audio and visual communication solutions, on February 21, 2020, asked for a Court order that Shure has been manufacturing, marketing, and selling its redesigned MXA910, the MXA910W-A released in December 2019, in violation of a preliminary injunction issued by Judge Edmond E. Chang of the U.S. District Court of the Northern District of Illinois. That court-ordered injunction prohibits Shure from “manufacturing, marketing, and selling” the MXA910 for use “in its drop-ceiling mounting configuration, including marketing and selling the MXA910 in a way that encourages or allows integrators to install it in a drop-ceiling mounting configuration.” By law, the injunction applies to the MXA910 and “colorable imitations” thereof.

ClearOne’s filing asserts that Shure has been willfully manufacturing, marketing, and selling its MXA910W-A in a way that “encourages or allows integrators to install it in a drop-ceiling mounting configuration.” The measurements of the MXA910W-A allow it to be installed securely in the prohibited configuration in the majority of U.S. drop-ceiling grids, and Shure’s marketing materials encourage such installation. In addition, ClearOne has found evidence that third parties are in fact installing the MXA910W-A in the prohibited configuration. ClearOne has asked the Court to order Shure to cease marketing and selling the MXA910W-A in the United States, notify all customers that the MXA910W-A violates the preliminary injunction and is thus subject to recall, award ClearOne its attorneys’ fees associated with the contempt motion, and for additional discovery relating to how Shure’s customers are installing the MXA910W-A.

“Shure chose to play fast and loose with the Court’s preliminary injunction order, rushing to market with a design that, we believe, still infringes ClearOne’s patent,” said Zee Hakimoglu, ClearOne Chair and CEO. “Shure appears to have fully appreciated the risks they were taking, yet they willingly crossed the line, making things more difficult for all involved.” Ms. Hakimoglu reiterated that “ClearOne remains committed to protecting its intellectual property rights while playing by the rules, and won’t be intimidated by Shure into foregoing ClearOne’s right to fair competition on a level playing field.”  

The case number in the U.S. District Court of the Northern District of Illinois is 17-cv-3078.