Court Holds Shure in Contempt of Preliminary Injunction Order

ClearOne (NASDAQ: CLRO), a leading global provider of audio and visual communication solutions, comments on the order issued yesterday by Judge Edmond E. Chang of the U.S. District Court of the Northern District of Illinois holding that “Shure has violated the preliminary injunction order and is found in contempt because it designed the MXA910-A in such a way that allows it to be easily installed flush in most ceiling grids” (the “Contempt Order”).

The “preliminary injunction order” referenced (the “PI Order”) is the August 2019 Order that enjoined Shure from, among other things, “manufacturing, marketing, and selling the MXA910 in a way that encourages or allows integrators to install it in a drop-ceiling mounting configuration” in a way that infringes ClearOne’s U.S. Patent No. 9,813,806 (the “’806 Patent”). In response to that Order, Shure released the MXA910-A, claiming publicly that “[t]he Court ruled on November 3, 2019, that the new MXA910W-A is not included under the preliminary injunction.”

In the Contempt Order, the Court corrected Shure: “[T]he record is clear and convincing that Shure—through its design choices—violated the injunction order by allowing integrators to install the MXA910-A in the enjoined flush configuration.” Ultimately, the Court ordered that “Shure shall no longer manufacture, market, or sell the MXA910-A…” […]

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