UCLOUDLINK GROUP INC. Announces Progress in U.S. Patent Infringement Disputes and New Subsidiary Establishment in the UK

Rhea-AI Summary

On March 29, 2021, UCLOUDLINK GROUP INC. (NASDAQ: UCL) announced significant developments regarding its patent dispute with SIMO Holdings Inc. The U.S. Court of Appeals for the Federal Circuit reversed a previous ruling in favor of SIMO, ruling that uCloudlink Entities were not infringing on SIMO's patent, resulting in a full refund of $8,230,654 previously held in escrow. Additionally, uCloudlink established a new subsidiary in the U.K. aimed at enhancing its market expansion and local management efficiency.

Positive

• U.S. Court of Appeals ruled in favor of uCloudlink, reversing the previous patent infringement decision and refunding $8,230,654.
• Establishment of a new subsidiary in the U.K. expected to improve market expansion and local management efficiency.

Negative

• None.

HONG KONG, March 29, 2021 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“uCloudlink” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced the latest developments in its patent infringement disputes with SIMO Holdings Inc. (“SIMO”) in the United States and the establishment of a new subsidiary in the United Kingdom.

1. U.S. Patent Infringement Case

In 2018, SIMO sued Hong Kong uCloudlink Network Technology Limited and uCloudlink (America), Limited (collectively “uCloudlink Entities”) for infringing its U.S. Patent No. 9,736,689. The United States District Court for the Southern District of New York (“SDNY”) found for SIMO and ordered uCloudlink Entities to pay damages amounting to US$ 8,230,654. Believing the trial judge erred in the construction of SIMO’s patent claims, uCloudlink Entities appealed the SDNY decision to the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”). Pending decisions of the Federal Circuit, uCloudlink Entities had placed an amount equal to the damages ordered by SDNY in escrow.

On January 5, 2021, the Federal Circuit reversed the SDNY decision and held that “uCloudlink Entities are entitled to summary judgment of noninfringement.” Subsequently, SIMO filed a petition for panel rehearing and rehearing en banc on February 4, 2021, which was denied by the Federal Circuit on March 11, 2021. On March 29, 2021, the escrowed funds were fully refunded to uCloudlink Entities.

2. Establishment of a New Subsidiary in the U.K.

In February 2021, uCloudlink established a new subsidiary in the U.K. named UCLOUDLINK UK LIMITED. The Company expects that the establishment of this new subsidiary will further facilitate its expansion in the U.K. market and improve the efficiency of local management.

About UCLOUDLINK GROUP INC.

uCloudlink is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

For more information, please visit: https://ir.ucloudlink.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. uCloudlink may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about uCloudlink’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: uCloudlink’s strategies; uCloudlink’s future business development, financial condition and results of operations; uCloudlink’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in uCloudlink’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to uCloudlink’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and uCloudlink undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

UCLOUDLINK GROUP INC.
Bob Shen
Tel: +852-2180-6111
Email: ir@ucloudlink.com

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
Email: UCL@tpg-ir.com

In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: UCL@tpg-ir.com 

FAQ

What was the outcome of the patent infringement case involving UCL?

The U.S. Court of Appeals reversed the ruling in favor of SIMO, stating that uCloudlink Entities did not infringe on SIMO's patent.

What amount was refunded to UCL after the court ruling?

uCloudlink Entities received a full refund of $8,230,654 from escrow following the court's decision.

When was the new subsidiary UCLOUDLINK UK LIMITED established?

The new subsidiary in the U.K. was established in February 2021.

How does UCL plan to utilize its new subsidiary in the U.K.?

The subsidiary is expected to facilitate expansion in the U.K. market and enhance local management efficiency.