Arbitration judgment issued in ISS lawsuit with Econolite

Image Sensing Systems has received a binding arbitration award related to its arbitration with Econolite Control Products, the exclusive distributor of ISS’ Autoscope products in North America.  In the award, ISS is to pay Econolite $262,000 for unused RTMS inventory and $246,000 for RTMS royalties. ISS was awarded $205,000 for RTMS royalties already paid to Econolite.  ISS had recorded $303,000 of expense in its financial statements as of and for the quarter ended December 31, 2017, which will be reflected in its financial statements to be included in its Annual Report on Form 10-K for the year ended December 31, 2017.

Chad Stelzig, President and CEO of ISS, said, “We feel strongly that there was a solid contractual agreement with Econolite that favored ISS’ position in the arbitration and that we could successfully defend against all elements of the claim Econolite filed against ISS. In the end, we prevailed in some elements of the arbitration but not others. However, we respect the arbitrator’s decision and want to put this issue behind us as we work with Econolite to grow the Autoscope market share in North America.”