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February 13, 2007
Check Please
DataTreasury,
owning patents for auotmated check processing that has become Federal law, sued
and settled with EDS, at least in part one of their two-part dispute. EDS had
counterclaimed. EDS wanted to see the counterclaims through in its preferred
venue, going for the kill in the second, separate, unsettled matter. The
district court said no, and the CAFC concurred.
DataTreasury had asserted 5,265,007; 5,717,868; 5,910,988; and 6,032,137 against EDS. EDS had filed for declaratory judgment in the Northern District of Texas, whereas DataTreasury had sued EDS in the more plaintiff-friendly Eastern District of Texas. Northern District Judge Ed Kinkeade ruled that the settlement mooted the counterclaims, and the CAFC agreed. Whatever invalidity spear chucking EDS has now moves to the Eastern District.
DataTreasury has been on a tear successfully enforcing these patents, which go to archiving checks in digital form, part of federal banking law known as "Check 21." Essentially, DataTreasury patented the law. The patented processes could save the banks billions in check processing costs, dropping the cost from up to $2 to mere pennies. So far, DataTreasury has wrangled licenses from J.P. Morgan, NCR, Affiliate Computer Systems, and Canada-based RDM. Other banks, including Citigroup, Wells Fargo, and Bank of America, are still facing litigation.
Two other companies sued by DataTreasury, First Data and TeleCheck International, failed in their attempts to invaldate the patents, but have not yet settled.
Posted by Patent Hawk at February 13, 2007 12:27 AM | Litigation