Item 1. Legal Proceedings
Item 1. LEGAL PROCEEDINGS
The Company is involved in litigation against Shure Incorporated (“Shure”) as further described in Part I, Item 3 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), which information is incorporated herein by reference. The following recent developments amend and supplement the disclosure of the ongoing litigation proceedings against Shure as follows:
Shure, Incorporated v. ClearOne, Inc., 17-cv-3078 (N.D. of Illinois)
Shure and ClearOne completed supplemental briefing before the district court relating to the Court’s ruling holding Shure in contempt. The Court has not yet issued a ruling on the supplemental briefing. On July 21, 2021, the Federal Circuit dismissed Shure’s appeal of the Court’s ruling holding Shure in contempt.
ClearOne, Inc. v. Shure, Incorporated, 19-cv-02421 (N.D. of Illinois)
On July 21, 2020, ClearOne informed the Court that it would proceed with its advertising-related claims in Delaware rather than Illinois. ClearOne thus filed a Second Amended Complaint removing the prospective economic advantage and trade libel claims. In July 2021, the parties completed briefing on Shure’s early motion to obtain summary judgment and dismissal of ClearOne’s trade secret misappropriation claims. The parties’ claim construction briefing is still pending.
Shure, Incorporated v. ClearOne, Inc., 19-cv-1343 (D. of Delaware)
On April 16, 2021, Shure and ClearOne filed summary judgment and Daubert motions. ClearOne filed for summary judgment of noninfringement and invalidity relating to the ’493 Patent; and summary judgment of no liability on various alleged false statements and of no lost profits or unjust enrichment relating to the false advertising claims. ClearOne also moved to exclude certain opinions from two Shure expert witnesses. Shure filed summary judgment motions on ClearOne’s inventorship argument; and on all of ClearOne’s counterclaims. They also seek to exclude certain opinions from two ClearOne expert witnesses. Briefing on these summary judgment and Daubert motions was completed in May 2021, and a hearing on a subset of the motions occurred in June 2021. The Court has not yet issued any orders on these motions.
Item 1A. RISK FACTORS
None.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a) None.
(b) Not applicable.
(c) None.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
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