<SEC-DOCUMENT>0001753926-20-000280.txt : 20200902
<SEC-HEADER>0001753926-20-000280.hdr.sgml : 20200902
<ACCEPTANCE-DATETIME>20200902090143
ACCESSION NUMBER:		0001753926-20-000280
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200902
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200902
DATE AS OF CHANGE:		20200902

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CLEARONE INC
		CENTRAL INDEX KEY:			0000840715
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				870398877
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33660
		FILM NUMBER:		201155797

	BUSINESS ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116
		BUSINESS PHONE:		8019757200

	MAIL ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CLEARONE COMMUNICATIONS INC
		DATE OF NAME CHANGE:	20020204

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER COMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER ELECTRONICS CORP
		DATE OF NAME CHANGE:	19910808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>MainDocument.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html><body><div><div style="font-family: 'times new roman', times; font-size: 10pt;">
<p style="line-height: 3pt; margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 3pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 14pt; font-weight: bold;">UNITED STATES</font><font style="font-family: 'Times New Roman'; font-size: 14pt; font-weight: bold;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Washington, D.C. 20549</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 14pt; font-weight: bold;">FORM 8-K</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">CURRENT REPORT</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Date of report (Date of earliest event reported): </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; text-decoration: underline;">September 2</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; text-decoration: underline;">, 2020</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"> (September 1, 2020)</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 14pt; font-weight: bold; text-decoration: underline;">ClearOne, Inc.</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Exact name of registrant as specified in its charter)</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Delaware </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">001-33660 </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">87-0398877 </font></p>
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<p style="margin: 0pt 0pt 0pt 2.25pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(State or Other Jurisdiction</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">of Incorporation) </font></p>
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<p style="margin: 0pt 0pt 0pt 2.25pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Commission</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">File Number) </font></p>
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<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font></p>
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<p style="margin: 0pt 0pt 0pt 1.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(I.R.S. Employer</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">Identification No.) </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">5225 Wiley Post Way, Suite 500, Salt Lake City, Utah </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">84116 </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Address of principal executive offices) </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Zip Code) </font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; text-decoration: underline;">+1 (801) 975-7200</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Registrant&#8217;s telephone number, including area code)</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; text-decoration: underline;">Not applicable</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Former name or former address, if changed since last report)</font></p>
<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'MS Mincho'; font-size: 10pt;">&#9744;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </font></p>
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<p style="margin: 0pt;"><font style="font-family: 'MS Mincho'; font-size: 10pt;">&#9744;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font></p>
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<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'MS Mincho'; font-size: 10pt;">&#9744;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Pre-commencement communication pursuant to Rule 13e-4</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#169;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> under the Exchange Act (17 CFR 240.13e-4</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#169;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">) </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter). </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">Emerging growth company </font><font style="font-family: 'MS Mincho'; font-size: 10pt;">&#9744;</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. </font><font style="font-family: 'MS Mincho'; font-size: 10pt;">&#9744;</font></p>
<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Securities Registered Pursuant to Section 12(b) of the Act:</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; text-decoration: underline;">Title of each class</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; text-decoration: underline;">Trading Symbol(s)</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; text-decoration: underline;">Name of each exchange on which registered</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Common Stock, $0.001</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">CLRO</font></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The NASDAQ Capital Market</font></p>
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<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Item </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">8.01 </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Other Events.</font></p>
<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ClearOne, Inc. (the &#8220;Company&#8221;)</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> is involved in litigation again</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">st Shure Incorporated (&#8220;Shure&#8221;) as further described in Part I, Item 3 of the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2019 (the &#8220;Annual Report&#8221;)</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, as supplemented by the Company&#8217;s Current Report on Form 8-K as filed with the Securities and Exchange Commission on August 25, 2020 (the &#8220;Current Report&#8221;)</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, which information </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">in such Annual Report and Current Report </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">is </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">incorporated herein by reference.&nbsp; The following recent developments amend and supplement the disclosure of the ongoing litigation proceedings against Shure as follows:</font></p>
<p style="margin: 0pt; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
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<li style="font-family: Symbol; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0pt 0pt 12pt 46.52pt; padding-left: 25.48pt; text-indent: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; text-decoration: underline;">Shure, Incorporated v. ClearOne, Inc.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, 17-cv-3078 (N.D. of Illinois) - In this matter, </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">the Company </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">asserts that Shure&#8217;s MXA910, MXA910-A, and MXA910-US infringes two ClearOne patents:</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">U.S. Patent No. 9,635,186 (the &#8220;&#8217;186 Patent&#8221;) and U.S. Patent No.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">9,813,806 (the &#8220;&#8217;806 Patent&#8221;).&nbsp; </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">On September 2, 2020, the Company issued a press release announcing an order issued September 1, 2020</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> by Judge Edmond E. Chang of the U.S. District Court of the Northern District of Illinois holding that &#8220;Shure has violated the preliminary injunction order and is found in contempt because it</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">designed the MXA910-A in such a way that allows it to be easily installed flush in most ceiling grids</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">.&#8221; A copy of the Company&#8217;s press release dated September 2, 2020 is filed herewith as exhibit 99.1 and is incorporated herein by reference.</font></li>
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<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Item 9.01</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Financial Statements and Exhibits</font></p>
<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> Exhibits</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">99</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">.1</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
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<p style="margin: 0pt; text-align: justify;"><a href="ex991_1.htm" name="EX-99.1" class="LinkedExhibit" style="-sec-extract: exhibit;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Press Release of ClearOne, Inc. dated September 2, 2020.</font></a></p>
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<p style="margin: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">SIGNATURES</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">CLEARONE, INC. </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Date: </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">September </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">2</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, 2020 </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">By: </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic;">/s/ Zeynep Hakimoglu </font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Zeynep Hakimoglu </font></p>
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<p style="margin: 0pt 0pt 0pt 1.5pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Chief Executive Officer (Principal Executive Officer) </font></p>
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<p style="margin: 0pt; text-align: center;"><br><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">EXHIBIT INDEX</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">99</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">.1</font></p>
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<p style="margin: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
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<p style="margin: 0pt; text-align: justify;"><a href="ex991_1.htm" name="EX-99.1" class="LinkedExhibit" style="-sec-extract: exhibit;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Press Release of ClearOne, Inc. dated September 2, 2020.</font></a></p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html><body><div><div style="font-family: 'times new roman', times; font-size: 10pt;">
<p align="right" style="text-align: right; margin: 0cm 0cm 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;"><font style="font-family: 'times new roman', times;"><b><font lang="EN-US" style="font-size: 12pt;">Exhibit 99.1</font></b></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 12pt;"><font style="font-family: 'Times New Roman'; font-weight: bold;"><br></font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 12pt;"><font style="font-family: 'Times New Roman'; font-weight: bold;">Court </font><font style="font-family: 'Times New Roman'; font-weight: bold;">Holds</font><font style="font-family: 'Times New Roman'; font-weight: bold;"> Shure in Contempt of Preliminary Injunction Order</font></font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">SALT LAKE CITY,</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">September 2</font><font style="font-family: 'Times New Roman';">, 20</font><font style="font-family: 'Times New Roman';">20</font><font style="font-family: 'Times New Roman';"> /PRNewswire/ --</font><font style="font-family: 'Times New Roman';">&nbsp;</font><font style="font-family: 'Times New Roman';">ClearOne (NASDAQ: CLRO)</font><font style="font-family: 'Times New Roman';">, a leading global provider of audio and visual communication solutions, comments on</font><font style="font-family: 'Times New Roman';"> the</font><font style="font-family: 'Times New Roman';"> order</font><font style="color: #0070c0; font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">issued</font><font style="font-family: 'Times New Roman';"> yesterday</font><font style="font-family: 'Times New Roman';"> by </font><font style="font-family: 'Times New Roman';">Judge </font><font style="font-family: 'Times New Roman';">Edmond E. Chang of the U.S. District Court of the Northern District of Illinois </font><font style="font-family: 'Times New Roman';">holding</font><font style="font-family: 'Times New Roman';"> that </font><font style="font-family: 'Times New Roman';">&#8220;Shure has violated the preliminary injunction order and is found in contempt because it designed the MXA910-A in such a way that allows it to be easily installed flush in most ceiling grids</font><font style="font-family: 'Times New Roman';">&#8221; (</font><font style="font-family: 'Times New Roman';">the </font><font style="font-family: 'Times New Roman';">&#8220;</font><font style="color: #0000ff; font-family: 'Times New Roman'; text-decoration: underline;">Contempt </font><font style="color: #0000ff; font-family: 'Times New Roman'; text-decoration: underline;">Order</font><font style="font-family: 'Times New Roman';">&#8221;).</font><font style="font-family: 'Times New Roman';">&nbsp;</font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';"><br></font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">The </font><font style="font-family: 'Times New Roman';">&#8220;</font><font style="font-family: 'Times New Roman';">preliminary injunction order</font><font style="font-family: 'Times New Roman';">&#8221;</font><font style="font-family: 'Times New Roman';"> referenced (</font><font style="font-family: 'Times New Roman';">the </font><font style="font-family: 'Times New Roman';">&#8220;</font><font style="color: #0000ff; font-family: 'Times New Roman'; text-decoration: underline;">PI Order</font><font style="font-family: 'Times New Roman';">&#8221;) is the August 2019 </font><font style="font-family: 'Times New Roman';">O</font><font style="font-family: 'Times New Roman';">rder that enjoined Shure from, among other things, &#8220;manufacturing, marketing, and selling the MXA910 in a way that encourages or allows integrators to install it in a drop-ceiling mounting configuration&#8221; </font><font style="font-family: 'Times New Roman';">in a way </font><font style="font-family: 'Times New Roman';">that infringes ClearOne&#8217;s U.S. Patent No. 9,813,806 (the &#8220;&#8217;806 Patent&#8221;).&nbsp; </font><font style="font-family: 'Times New Roman';">In response to that Order, Shure released the MXA910-A, claiming </font><font style="font-family: 'Times New Roman';">publicly </font><font style="font-family: 'Times New Roman';">that &#8220;</font><font style="font-family: 'Times New Roman';">[t]he Court rule</font><font style="font-family: 'Times New Roman';">d</font><font style="font-family: 'Times New Roman';"> on November 3, 2019, that </font><font style="font-family: 'Times New Roman';">the new MXA910W-A is not included under the preliminary injunction.&#8221;</font></font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">In the Contempt Order,</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">t</font><font style="font-family: 'Times New Roman';">he Court</font><font style="font-family: 'Times New Roman';"> corrected Shure</font><font style="font-family: 'Times New Roman';">:</font><font style="font-family: 'Times New Roman';"> &#8220;</font><font style="font-family: 'Times New Roman';">[T]</font><font style="font-family: 'Times New Roman';">he record is clear and convincing that </font><font style="font-family: 'Times New Roman';">Shure&#8212;through its design choices&#8212;violated the injunction order by allowing integrators to install the MXA910-A in the enjoined flush configuration</font><font style="font-family: 'Times New Roman';">.&#8221;&nbsp; </font><font style="font-family: 'Times New Roman';">Ultimately, t</font><font style="font-family: 'Times New Roman';">he Court ordered that &#8220;Shure shall no longer manufacture, market, or sell the MXA910-A</font><font style="font-family: 'Times New Roman';">&#8230;</font><font style="font-family: 'Times New Roman';">&#8221;</font></font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">In addition</font><font style="font-family: 'Times New Roman';">, the Court </font><font style="font-family: 'Times New Roman';">held that</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">&#8220;[t]he record is also clear as to the MXA910-60CM, but in an abundance of caution, the Court will refrain from granting that aspect of the contempt motion to allow for additional discovery&#8221; on that</font><font style="font-family: 'Times New Roman';"> and</font><font style="font-family: 'Times New Roman';"> the </font><font style="font-family: 'Times New Roman';">&#8220;possibility that Shure </font><font style="font-family: 'Times New Roman'; font-style: italic;">also </font><font style="font-family: 'Times New Roman';">violated the preliminary injunction order&#8221;</font><font style="font-family: 'Times New Roman';"> by </font><font style="font-family: 'Times New Roman';">&#8220;</font><font style="font-family: 'Times New Roman';">pushing</font><font style="font-family: 'Times New Roman';">&#8221;</font><font style="font-family: 'Times New Roman';"> sales of the MXA910 </font><font style="font-family: 'Times New Roman';">immediately </font><font style="font-family: 'Times New Roman';">after the </font><font style="font-family: 'Times New Roman';">issuance of the</font><font style="font-family: 'Times New Roman';"> PI Order</font><font style="font-family: 'Times New Roman';">&#8212;discovery to which ClearOne would not have otherwise been entitled.</font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';"><br></font></font></p>
<p style="margin: 0px; text-align: justify; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">&#8220;</font><font style="font-family: 'Times New Roman';">We believe that t</font><font style="font-family: 'Times New Roman';">his </font><font style="font-family: 'Times New Roman';">Contempt </font><font style="font-family: 'Times New Roman';">Order</font><font style="font-family: 'Times New Roman';"> finally puts to bed Shure&#8217;s claim that the </font><font style="font-family: 'Times New Roman';">MXA910-A is not subject to the PI Order</font><font style="font-family: 'Times New Roman';">,&#8221;</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">said Zee Hakimoglu, CEO and Chair of ClearOne.</font></font></p>
<p style="margin: 0px; text-align: justify; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';"><br></font></font></p>
<p style="margin: 0px; text-align: justify; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">&#8220;</font><font style="font-family: 'Times New Roman';">The Order </font><font style="font-family: 'Times New Roman';">&#8212;rightfully</font><font style="font-family: 'Times New Roman';"> in my view</font><font style="font-family: 'Times New Roman';">&#8212;</font><font style="font-family: 'Times New Roman';">described Shure&#8217;s efforts with the MXA910-A as </font><font style="font-family: 'Times New Roman';">&#8216;</font><font style="font-family: 'Times New Roman';">not fully in the spirit of a </font><font style="font-family: 'Times New Roman';">good-faith</font><font style="font-family: 'Times New Roman';"> design around</font><font style="font-family: 'Times New Roman';">&#8217;</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">and </font><font style="font-family: 'Times New Roman';">concluded that </font><font style="font-family: 'Times New Roman';">Shure </font><font style="font-family: 'Times New Roman';">&#8216;</font><font style="font-family: 'Times New Roman';">either gave </font><font style="font-family: 'Times New Roman';">dishonest</font><font style="font-family: 'Times New Roman';"> information to [its own] counsel or was </font><font style="font-family: 'Times New Roman';">negligent in the extreme</font><font style="font-family: 'Times New Roman';"> in providing that</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">information</font><font style="font-family: 'Times New Roman';">.</font><font style="font-family: 'Times New Roman';">&#8217;</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">ClearOne </font><font style="font-family: 'Times New Roman';">is pleased that the Court continues to hold Shure responsible for its unlawful conduct</font><font style="font-family: 'Times New Roman';">, and we will continue to vigorously pursue </font><font style="font-family: 'Times New Roman';">all available legal remedies to defend our strategic patents from infringement</font><font style="font-family: 'Times New Roman';">,</font><font style="font-family: 'Times New Roman';">&#8221;</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">Hakimoglu concluded.</font></font></p>
<p style="margin: 0px; text-align: justify; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';"><br></font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">ClearOne&#8217;s motion to accuse Shure&#8217;s MXA910-US</font><font style="font-family: 'Times New Roman';"> </font><font style="font-family: 'Times New Roman';">of infring</font><font style="font-family: 'Times New Roman';">ing</font><font style="font-family: 'Times New Roman';"> the &#8217;806 Patent is still pending with the Court.</font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';"><br></font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">The case number in the U.S. District Court of the Northern District of Illinois is </font><font style="font-family: 'Times New Roman';">17-cv-3078.</font></font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&nbsp;</font></p>
<p style="margin: 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 12pt; font-weight: bold;">About ClearOne&nbsp;</font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">ClearOne is a global company that designs, develops and sells conferencing, collaboration, </font><font style="font-family: 'Times New Roman';">and network streaming</font><font style="font-family: 'Times New Roman';"> solutions for voice and visual communications. The performance and simplicity of its advanced, comprehensive solutions offer unprecedented levels of functionality, reliability, and scalability.</font><font style="font-family: 'Times New Roman';">&nbsp; Visit ClearOne at </font><font style="color: #0000ff; font-family: 'Times New Roman'; text-decoration: underline;">www.clearone.com</font><font style="font-family: 'Times New Roman';">.</font></font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-size: 10pt;"><font style="font-family: 'Times New Roman';">Printable releases are available in our Investor Relations area at</font><font style="font-family: 'Times New Roman';">&nbsp;</font><font style="color: #0000ff; font-family: 'Times New Roman'; text-decoration: underline;">http://investors.clearone.com</font><font style="font-family: 'Times New Roman';">.</font></font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 12pt; font-weight: bold;">Forward Looking Statements</font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">This release contains &#8220;forward-looking&#8221; statements that are based on present circumstances and on ClearOne&#8217;s predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements and any statements of the plans and objectives of management for future operations and forecasts of future growth and value, are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. Such forward-looking statements are made only as of the date of this release and ClearOne assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. The information in this press release should be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the &#8220;10-K&#8221;) filed by the Company for the same period with the Securities and Exchange Commission (the &#8220;SEC&#8221;) and all of the Company&#8217;s other public filings with the SEC (the &#8220;Public Filings&#8221;).</font></p>
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<p style="margin: 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contact: </font><br><font style="font-family: 'Times New Roman'; font-size: 10pt;">ClearOne Marketing </font><br><font style="font-family: 'Times New Roman'; font-size: 10pt;">801-975-7200</font></p>
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