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Vivint ordered to pay $45 million to SkyBell Technologies

Vivint ordered to pay $45 million to SkyBell Technologies

Vivint ordered to pay $45 million to SkyBell Technologies

IRVINE, Calif. – SkyBell Technologies, a video doorbell and smart home security solutions provider, has announced a successful outcome in its recent patent infringement lawsuit against Vivint.

According to a release from the company, on Monday, Oct. 23, 2023, a federal jury in the Sherman Division of the Eastern District of Texas rendered its verdict, determining that Vivint Inc. willfully infringed upon two of SkyBell's patents, leading to a damage award of $45.4 million in favor of SkyBell's subsidiary, SB IP Holdings LLC.

"This lawsuit underscored our commitment to principle, innovation, and the sanctity of intellectual property rights," Giovanni Tomaselli, president of SkyBell Technologies said. "We embarked on this legal journey to safeguard the intellectual achievements that have set SkyBell apart in the industry. The verdict is not just a fair and reasonable outcome for SkyBell, but a message to others in the security industry about the importance of honoring and respecting SkyBell's genuine innovation."

Desiree Mejia, Co-Founder and COO of SkyBell Technologies, also expressed her thoughts on the recent verdict: "From the outset, SkyBell made a deliberate yet challenging decision to establish our business on a bedrock of robust intellectual property. While many peers diverted their resources solely to marketing, we consciously and significantly invested in IP. This outcome stands as a testament to the legal system recognizing and rewarding our core principals, even in the face of daunting competitive pressure."

This ruling marks one of several judgments made against the smart home technology provider this year from competitors and consumer groups. In February, Security System News reported on a lawsuit brought against the company by CPI Security for false and deceptive sales practices which saw the jury award them $189 million in damages, and a credit report misuse case brought by the FTC saw Vivint paying a $20 million settlement that closed early in October, among others.

Despite a pattern of similar lawsuits stretching back several years, Vivint was acquired earlier this year by NRG Energy in March for $2.8 billion. The company faced stern opposition from investors who questioned the value of the acquisition that culminated in activist investor group Elliot Management acquiring 13% economic interest in the company and issuing a letter accusing NRG of making serious strategic missteps. What effect the constant lawsuits incurred by Vivint have had on NRG may soon become clear as the company is scheduled to report on their third quarter 2023 financial results on November 2, 2023.

For its part, SkyBell said the ruling serves as motivation to continue driving innovation, focusing on research and development, and fortifying its leadership in the video doorbell and smart home security sectors. "Our passion for pushing boundaries remains unabated. We're more committed than ever to leading the way in cutting-edge home security solutions," added Mr. Tomaselli.


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