Hesai Announces Initial Determination from ITC Administrative Law Judge Granting Hesai’s Motion to Terminate Patent Infringement Investigation Brought by Ouster

PALO ALTO, Calif., Aug. 25, 2023 (GLOBE NEWSWIRE) -- Hesai Group (“Hesai” or the “Company”) (NASDAQ: HSAI), the global leader in three-dimensional light detection and ranging (“LiDAR”) solutions, today announced positive developments in its patent infringement lawsuit against Ouster, Inc. (“Ouster”).  

On April 11, 2023, Ouster filed a complaint against Hesai and Hesai Technology Co., Ltd. in the United States District Court for the District of Delaware for alleged patent infringement (the “Delaware Action”). At the same time, Ouster filed a companion complaint at the U.S. International Trade Commission (the “ITC”), requesting an investigation into Hesai and its affiliated entities pursuant to Section 337 of the Tariff Act of 1930 based on substantially similar allegations (the “ITC Action”). Hesai denies all of Ouster’s allegations and is vigorously defending its rights.

The Delaware Action is presently stayed. On June 22, 2023, Hesai filed a motion to terminate the ITC Action. In its motion, Hesai argued that Ouster’s infringement allegations are barred by a prior settlement and arbitration agreement between Hesai and Velodyne Lidar, Inc. (the “Settlement Agreement”). Velodyne and Ouster completed a merger of equals transaction in February 2023. Hesai argued that, pursuant to the Settlement Agreement, resolution of the issues should be decided in arbitration rather than in district court or the ITC. 

On August 24, 2023, the presiding Administrative Law Judge (“ALJ”) issued an order granting Hesai’s motion to terminate the ITC Action. The order is an initial determination that is subject to review by the ITC Commissioners. 

Hesai has become the global leader in providing superior LiDAR technologies to the market and has over 400 granted patents and over 700 pending patent applications worldwide. Hesai values and respects valid and enforceable intellectual property rights and will continue to defend itself against any allegations that are improper or lack merit.

Innovation and safety are at the heart of Hesai’s culture. Hesai has more than 700 highly qualified engineers and staff working in its R&D and manufacturing teams who are dedicated to developing superior LiDAR products to advance the safety and performance of driver assisted technologies to save lives worldwide. As a result of Hesai relentless pursuit of LiDAR innovation and safety, Hesai has become the global leader in LiDAR technology solutions, having cumulatively delivered more than 190,000 LiDAR units since inception and more than 87,000 LiDAR units in the first half of 2023 alone.