This past October, home automation company Ring announced a new addition to their product line – a new home security system. Ring Protect, a comprehensive security system that was priced at $199, will no longer be shipped out to consumers like planned. The system was suppose to include a base station, a key pad, a window and door sensor, a infrared sensor, and a Z-wave extender in competition of ADT’s traditional home security.
A Delaware judge has temporarily halted the release of Ring’s Protect Security System.
Ring is currently under a lawsuit against ADT, where claims have been made that there is enough evidence to suggest that Ring had ‘misappropriated intellectual property’ from Zonoff, which home security giant ADT had acquired earlier this year. However, Zonoff went under and about 75 of their employees were hired by Ring’s CEO.
ADT claims that Ring took Zonoff’s Z1 software, which legally was bound to ADT, and used it for their own devices.
ADT invested about $36 million in Zonoff to develop the Z1 home security software platform. ADT stated that Zonoff defaulted on their debt and that the CEO gave Ring’s team a USB with all of Z1’s secret information. However, Ring claims that the company had assisted Zonoff with $1.2 million to producing their own software.
The court has yet to reach a final verdict on the case.
Although an official decision has yet to be made, the injunction against Ring will definitely impact Ring’s business with the holiday season right around the corner. The plaintiff from the case released the following official statement: “We are pleased with the Court’s decision to enter a preliminary injunction against Ring’s improper use of ADT’s intellectual property. ADT respects the intellectual property of others, as we expect others to respect our own; and we look forward to a successful final resolution of this matter.” Vice Chancellor Laster even suggested that it will be ‘tough’ for Ring to defend itself against ADT’s trade secrets.
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