FORT WORTH, Texas -

AI and data analytics company Digital Recognition Network (DRN) announced on Thursday that rather than go to trial on the issue of damages, Location Services and DRN have agreed on a settlement after Federal Court ruled in DRN’s favor. 

Location Services LLC has paid DRN $325,000 on behalf of itself and DigitalDog Auto Recovery, following a district court ruling on Oct. 5 that found that Location Services “willfully and intentionally” interfered with DRN’s contract with DigitalDog. 

On top of the settlement payment, Location Services and DigitalDog agreed to certain restrictions on their use of LPR technology and data for the remainder of DigitalDog’s one-year non-compete. These include that Location Services will refrain from operating or using any LPR system to collect LPR data in California, and DigitalDog will refrain from operating or using any LPR system to collect LPR data anywhere until after May 11, 2019.  

The original lawsuit was brought to contest the the validity of a one-year non-competition provision in DRN’s contract with DigitalDog, which runs through May 11 of next year. 

SubPrime Auto Finance News reported on the ruling in favor of DRN back in October, which was based on three key findings: 

  • That DRN’s one-year, non-competition contract provision is valid and enforceable; 
  • that DigitalDog Auto Recovery breached its contract with DRN; 
  • and that Location Services LLC tortiously interfered with the contract.  

After the court’s ruling last month, the only issues that remained to wrap up the proceedings were the recoverability of damages and attorneys’ fees by DRN and the appropriate scope of injunctive relief to which DRN was entitled. 

“I insisted that the $325K be paid immediately in one lump sum by Wednesday, and it was…" said Todd Hodnett, executive chairman and founder of DRN, in a news release. 

“This result is a vindication of DRN’s approach to building a market where everyone – lenders, providers and affiliates – works together to grow the industry and move it forward.  When we work together, using transparent ethical business practices, everybody wins. We are pleased with the result and are ready to move forward and continue to help grow this market for all participants,” he concluded.