UCL Announces Progress in Commercial Defamation Dispute

Hong Kong, September 8 , 2020 – UCLOUDLINK GROUP INC. (“uCloudlink” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced positive developments in actions against SIMO Holdings Inc. (“SIMO”) and its subsidiaries, including a patent infringement case in the U.S. and a commercial defamation case in China, both instituted by uCloudlink’s subsidiaries.

1.     Patent Infringement Case

On August 16, 2018, HongKong uCloudlink Network Technology Limited and Ucloudlink (America), Ltd.filed a patent infringement complaint against SIMO and its subsidiary Skyroam, Inc. at the United States District Court in Northern District of California (“NDCA”) claiming patent infringement. In this action, certain SIMO entities, including the defendants in the patent infringement action, counterclaimed misappropriation of their trade secrets by uCloudlink entities. NDCA dismissed the counterclaims with prejudice on September 12, 2019.

SIMO moved NDCA for leave to file a motion to reconsider NDCA’s prior “dismissal with prejudice” decision and modify that decision to “dismissal without prejudice”.On August 26, 2020, SIMO’s motion was denied by NDCA.

2.     Commercial Defamation Case

On January 16, 2019, Shenzhen uCloudlink Network Technology Co., Ltd. (“Shenzhen uCloudlink”) filed a lawsuit against Shenzhen Skyroam Technology Co., Limited (“Skyroam”) and its legal representative Liu Jing at the People’s Court of Nanshan District in Shenzhen, China (the “Shenzhen Court”), claiming commercial defamation.Shenzhen uCloudlink complained that Skyroam and Liu Jing had published or spread on the Internet a large number of articles containing untrue information that uCloudlink’s products infringed Skyroam’s patent rights.

The Shenzhen Court heard the case on October 21, 2019 and entered its judgment in favor of Shenzhen uCloudlink on July 14, 2020. In particular, Liu Jing and Skyroam are held to be jointly liable to Shenzhen uCloudlink for the commercial defamation. The two defendants were ordered to compensate Shenzhen uCloudlink in the amount of RMB100,000 and bear the litigation costs. They are also required to issue public statements to neutralize the negative impacts of the online articles they published or spread on uCloudlink.