Digital Ally's Stock Rockets After 'significant' Patent Win Against Axon

Shares of Digital Ally Inc. rocketed 62% toward a five-month high in premarket trade Friday, after the maker of video surveillance products announced a "significant" victory in its patent battle with Axon Enterprises Inc. , which was formerly Taser International. Digital Ally said the U.S. Patent Office denied Axon's petition for inter parties review (IPR) of Digital's patent, as the petition did not establish a "reasonable likelihood" that Axon would prevail. The patent in question covers the automatic activation and coordination of multiple recording devices when a law enforcement vehicle's light bar is activated. "We look forward to restarting our patent infringement litigation in U.S. District Court against Axon, which had been stayed pending the Patent Office IPRs," said Digital's Chief Executive Stanton Ross. "We will now take the necessary actions to move to a trial where a jury can finally end Axon's willful infringement and assess damages due to us." Digital's stock had tumbled 23% year to date through Thursday, while Axon shares had edged up 3.3% and the S&P 500 had gained 7.6%.