e.DIGITAL FILES PATENT INFRINGEMENT LAWSUIT AGAINST DROPCAM

(SAN DIEGO, CA, – July 2, 2014) – e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced that it has filed a patent infringement lawsuit against “connected” security camera maker Dropcam. The complaint was filed in the United States District Court for the Southern District of California.

Handal & Associates, on behalf of the Company, recently filed the lawsuit against Dropcam, asserting six patents that are part of the Nunchi patent portfolio. e.Digital believes the Dropcam products named in the complaint infringe key aspects of the Company’s Nunchi patents, covering the use of devices to communicate and monitor remote locations.

Nunchi technology involves the retrieval of data from fixed or mobile sensors, using it to recognize, understand and affect interactions. Services based on the Nunchi portfolio include the use of servers, communication networks, sensors, adaptive algorithms and relational databases to understand and respond to the needs of people. The Nunchi applications range from simplistic tasks such as communication screening to much more complex tasks such as optimizing a user’s interactions and activities to enrich their lives.

“We are starting to see products introduced that exhibit reliance on the teachings of our Nunchi patent portfolio,” commented Fred Falk, president and CEO of e.Digital. “The Dropcam product is an example of this. The connected home industry is increasingly reliant on the collection of data from remote sensors. This data is thereafter interpreted to determine what, if any, response is required. As this industry continues to evolve, we believe that the interface between remote data collection and the user will become more frequent and grow in demand. This is where our Nunchi technology resides; between the remote data collection and the user,” added Falk.

“We would like to see this technology develop and are willing to work with companies to develop their own applications and products, but not at the expense of our licensing program or shareholders. We must therefore take steps to enforce and protect our intellectual property (“IP”) against those that leverage our valuable company assets for their own gain. We believe there are many other industry segments that are or will be fielding products that incorporate the technologies we’ve invented. As a result, we will continue to work closely with Handal & Associates to identify potential licensees and also possible infringers of our Nunchi IP, and bring them in line so as to have a level playing field for all who want to use our company’s technologies,” concluded Falk.