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.

About Hesai

Hesai is the global leader in three-dimensional light detection and ranging (LiDAR) solutions. The Company’s LiDAR products enable a broad spectrum of applications across passenger and commercial vehicles with advanced driver assistance systems (ADAS) and autonomous vehicle fleets (autonomous mobility). Hesai's technology also empowers robotics applications such as last-mile delivery robots and logistics robots in restricted areas. The Company’s commercially validated solutions are backed by superior research and development capabilities across optics, mechanics, electronics, and software. Hesai integrates LiDAR designs with an in-house manufacturing process, facilitating rapid product development while ensuring high performance, consistent quality and affordability. Hesai has established strong relationships with leading automotive OEMs, autonomous vehicle, and robotics companies worldwide, covering over 90 cities in 40 countries as of December 31, 2022.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; the trends in, expected growth and the market size of the ADAS, autonomous mobility and robotics industries; the market for and adoption of LiDAR and related technology; the Company’s ability to produce high-quality products with wide market acceptance; the success of the Company’s customers in developing and commercializing products using its solutions, and the market acceptance of those products; the Company’s ability to introduce new products that meet its customers’ requirement; the Company’s expectations regarding the effectiveness of its marketing initiatives and the relationship with its third-party partners; competition in the Company’s industry; the Company’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to the Company’s industry; the Company’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Hesai Group

Yuanting “YT” Shi, Investor Relations Director

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Piacente Financial Communications

Jenny Cai

Tel: +86 (10) 6508-0677

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In the United States:

Piacente Financial Communications

Brandi Piacente

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