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Location Services, LLC Pays DRN $325,000 After Federal Court Rules in DRN’s Favor

Rather than go to trial on the issue of damages, Location Services and DRN agree to a settlement that includes restrictions on Location Services’ use of license plate recognition (LPR) data and technology after the Court finds that Location Services “willfully and intentionally” interfered with DRN’s contract with DigitalDog Auto Recovery

FORT WORTH, TX – NOVEMBER 15, 2018Digital Recognition Network (DRN), an AI and data analytics company that provides vehicle location data and analytics to auto lenders, insurance carriers and other commercial verticals, today announced that Location Services, LLC has paid the company $325,000 on behalf of itself and DigitalDog Auto Recovery to settle all remaining issues in a lawsuit originally brought to contest the validity of a one-year non-competition provision in DRN’s contract with DigitalDog, which runs through May 11, 2019.

The settlement follows an October 5, 2018 U.S. District Court ruling in favor of DRN 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, the only issues that remained for trial were the recoverability of damages and attorneys’ fees by DRN and the appropriate scope of injunctive relief to which DRN was entitled.

In addition to paying DRN $325,000, 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, including 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.

“I insisted that the $325K be paid immediately in one lump sum by Wednesday, and it was. Given all of the companies they are buying with promises of future payouts to the owners of those companies and their demonstrated total disregard for contracts – I did not want to be holding their paper when this house of cards falls in on itself,” said Todd Hodnett, Executive Chairman and Founder of DRN. “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.”

About the author:

Strategic Account Manager
Jared is responsible for managing top strategic accounts for DRN's FinTech Business. Jared works with lenders to improve their risk modeling, collections and recovery strategies by optimizing DRN's vehicle location data to fit each clients needs and impact revenue goals.