Patent Ruling Could Cause Free-for-All for Check 21 Technology

WASHINGTON – The U.S. Patent and Trademark Office last week rejected all claims for a patent on check imaging processing by DataTreasury, potentially opening up the market to competing claims in the critical Check 21 technology. The tiny Plano, Texas, company, which has filed suits against the biggest players in check imaging, vowed to appeal the adverse ruling to the patent office. The U.S. ruling comes after several of the targets of litigation brought by DataTreasury, including First Data, requested a patent reexamination. Other litigation targets include SVPCO, Viewpoint Archive Services, Citigroup and Bank of America. In a statement released Friday, Viewpoint, one of four competing electronic check exchanges, applauded the patent ruling. “Although it is not final, the decision is consistent with our position that earlier patents and other publications describing the use of image technology would invalidate the DataTreasury patents,” the company said. DataTreasury has filed suit against those parties, as well as Wells Fargo, Wachovia Bank, JP Morgan Chase, NetDeposit, RDM Corp., and Groupo Ingenico, claiming that processes used by those financial services giants infringed on patents owned by the company. JP Morgan Chase, NewDeposit, RDM and Groupo Ingenico, all agreed to multi- million-dollar licensing agreements to settle the suits.