Stingray Digital files counterclaim to Music Choice lawsuit

PRESS RELEASE:

Multi-platform music provider Stingray Digital Group Inc today countered in court what it believes are meritless allegations by Music Choice of patent infringement in relation to Stingray’s innovative music products and services.  In an Answer and Counterclaim filed today in the United States District Court for the Eastern District of Texas (Marshall Division), Stingray vigorously denies Music Choice’s claims of patent infringement and asserts counterclaims of non-infringement and invalidity of the five patents asserted in the First Amended Complaint for Patent Infringement filed in that Court on or about August 12, 2016 (the “Complaint”). 

In addition, in a separate lawsuit, also filed today in the United States District Court for the Eastern District of Texas (Marshall Division), Stingray Music USA, Inc. asserts claims of unfair competition, defamation, trade libel, tortious interference with existing and prospective contractual relationships, and unfair competition.  The separate lawsuit was necessary in view of the fact that Music Choice sued the wrong party in its First Amended Complaint for Patent Infringement.

“As explained in our Complaint, Music Choice has displayed a pattern of trying to stifle new market entrants with false statements and unfair commercial practices” says Eric Boyko, President, Co-founder and CEO of Stingray.  “Instead of disseminating false facts and filing lawsuits, Music Choice should use its resources to innovate its offerings and improve relations with its remaining customers and suppliers.”

“Stingray answers Music Choice’s Complaint as a first step in establishing the invalidity and non-infringement of Music Choice’s patents,” says Mr. Boyko.  In fact, as Stingray will demonstrate at trial, the asserted patents are invalid based, in part, upon certain prior art technology previously owned by a Music Choice subsidiary (subsequently purchased by Stingray in a share purchase transaction) of which the U.S. Patent Office was unaware during the prosecution of the patents. Furthermore, in its own action, Stingray Music USA, Inc. will be seeking monetary damages for the harm it suffered as a result of Music Choice’s attempts to damage Stingray’s reputation and exclude it from lawfully competing in the U.S. market.”

The litigations are ongoing and no trial dates have been scheduled.  The complete filings are on record with the United States District Court for the Eastern District of Texas (Marshall Division) or available by request from Stingray. 

About Stingray

Stingray (TSX: RAY.A; RAY.B) is a leading business-to-business multi-platform music and in-store media solutions provider operating on a global scale, reaching an estimated 400 million Pay-TV subscribers (or households) in 152 countries. Geared towards individuals and businesses alike, Stingray’s products include the following leading digital music and video services: Stingray Music, Stingray Concerts, Stingray Brava, Stingray Djazz, Stingray Music Videos, Stingray Lite TV, Stingray Ambiance, Stingray Karaoke, Festival 4K, and iConcerts. Stingray also offers various business solutions, including music and digital display-based solutions, through its Stingray Business division. Stingray is headquartered in Montreal and currently has close to 300 employees worldwide, including in the United States, the United Kingdom, the Netherlands, Switzerland, France, Israel, Australia and South Korea. Stingray was recognized in 2013 and 2014 as a finalist in the Top 50 of Deloitte’s Technology Fast 50^TM list, and figures amongst PROFIT magazine’s fastest-growing Canadian companies. In 2016, Stingray was awarded best IR for an IPO at the IR Magazine Awards – Canada. For more information, please visit www.stingray.com