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SmartDrive Files Antitrust Counterclaims for "Sham Litigation" and Trade Secrets Violations by DriveCam


smart drive

SAN DIEGO--December 22, 2011: SmartDrive Systems, a leader in fleet safety and operational efficiency, today announced that it has filed counterclaims for antitrust and trade secrets violations by DriveCam, Inc.

“We are satisfied that the USPTO rejected the patent claims asserted by DriveCam in its infringement suit. The prior art cited by the Patent Office establishes that those patents never should have been granted to DriveCam in the first place.”

SmartDrive filed counterclaims in United States District Court for the Southern District of California on December 20, 2011 asserting that DriveCam violated the Sherman Act by engaging in "sham litigation" for economic advantage, unfair competitive business practices, as well as misappropriation of SmartDrive trade secrets, among other counterclaims.

SmartDrive also announced this week that after a reexamination request by SmartDrive, the United States Patent and Trademark Office (USPTO) issued an Office action rejecting all claims of DriveCam's U.S. Patent No. 7,804,426 as unpatentable over multiple prior art references. The Patent Office also rejected as unpatentable all claims for which reexamination were sought in DriveCam's U.S. Patent No. 6,389,340. The claims rejected by the Patent Office include all of the claims in these patents asserted by DriveCam against SmartDrive in the pending lawsuit.

SmartDrive's President Jason Palmer stated, "We firmly believe that DriveCam has engaged in anticompetitive behavior designed to harm SmartDrive. In our view, SmartDrive offers innovative solutions meeting customers' needs. The marketplace should be free from anticompetitive conduct so that customers can have every opportunity to decide which solution best meets their needs for state of the art technology as well as customer service. Fair competition is the lifeblood of our economy."

Regarding the Patent Office's recent actions, Mr. Palmer stated "We are satisfied that the USPTO rejected the patent claims asserted by DriveCam in its infringement suit. The prior art cited by the Patent Office establishes that those patents never should have been granted to DriveCam in the first place."

About SmartDrive Systems
SmartDrive delivers innovative solutions that make it easy to improve driver safety and reduce operating cost. SmartDrive records comprehensive video-based data from the road, then thoroughly reviews and scores critical events and recommends action for fleet managers to quickly respond and deliver sustainable savings - all through an easy-to-use managed service. The company has compiled the world's largest storehouse - more than 34 million events - of real-time, risky-driving incidents. SmartDrive Systems is based in San Diego, CA, and employs over 375 people worldwide. For more information, please visit SmartDrive Systems.