Digital Ally, Inc. (NASDAQ: DGLY), the industry leader in law enforcement video technology, announced that it has filed an Unfair Competition lawsuit against Utility Associates, Inc. ("Utility") in the United States District Court for the District of Kansas. Digital contends that Utility has defamed Digital and illegally interfered with Digital’s contracts, customer relationships, and business expectancies by falsely asserting to Digital’s customers and others that Digital’s products violate the so called Boyken ‘556 Patent, of which Utility claims to be the holder.

Digital has already instituted proceedings in the United States Patent and Trademark Office to annul the ‘556 Patent, and Utility itself has admitted, in the context of prior litigation between these parties that, in truth, it does not claim that Digital’s products infringe upon, or that Digital or its customers have infringed upon, the ‘556 Patent.

Digital’s suit also includes claims against Utility for tortious interference with contract and violation of the Kansas Uniform Trade Secrets Act (KUSTA), arising out of Utility’s employment of a former Digital employee, in violation of that employee’s Non-Competition and Confidentiality agreements with Digital.

In addition to damages, Digital seeks temporary, preliminary, and permanent injunctive relief, prohibiting Utility from, among other things, continuing to threaten or otherwise interfere with Digital’s customers. Digital has requested, and is awaiting, a hearing upon the Motion for Temporary Restraining Order and Preliminary Injunction, which it filed contemporaneously with its Complaint against Utility.