Federal Circuit Dismisses Shure’s Appeal of District Court Order Holding Shure in Contempt


ClearOne (NASDAQ: CLRO), a leading global provider of audio and visual communication solutions, today comments on an Opinion issued by the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) regarding an appeal filed before that court by Shure Incorporated (“Shure”).  Through the appeal, Shure sought to overturn an order of the U.S. District Court for the Northern District of Illinois (the “District Court”) that held Shure in contempt for marketing and selling its MXA910-A product (the “Contempt Order”).  The Federal Circuit dismissed the appeal, leaving the Contempt Order intact and ordering Shure to pay certain costs that ClearOne incurred in responding to Shure’s appeal.

In August 2019, the District Court issued a preliminary injunction (the “PI Order”) enjoining Shure from “marketing and selling the MXA910 in a way that encourages or allows integrators to install it in a drop-ceiling mounting configuration.”  After the PI Order issued, Shure marketed and sold a redesigned MXA910-A product.  ClearOne then filed a motion for contempt, arguing that the structure of the MXA910-A product allowed integrators to install it flush in a drop-ceiling mounting configuration, and thus violated the PI Order.  

In September 2020, the District Court held Shure in contempt for violating the PI Order, finding that Shure “violated the injunction order by allowing integrators to install the MXA910-A in the enjoined flush configuration.”  Shure then appealed the Contempt Order to the Federal Circuit. 

On July 20, the Federal Circuit entered judgment in favor of ClearOne as to Shure’s appeal, finding that Shure’s position on appeal “lacks merit.”  The Federal Circuit held that the Contempt Order “faithfully applied the preliminary injunction—which barred sales if the product was capable of being installed in a drop-ceiling mounting configuration.” The Court therefore did not have jurisdiction to hear Shure’s appeal. 

The case number in the U.S. Court of Appeals for the Federal Circuit is 2021-1024.  The case number in the U.S. District Court for the Northern District of Illinois is 1:17-cv-03078.