OMAHA First Data Corp. said its subsidiary, First Data Resources of Omaha, Neb., has agreed to settle a patent infringement lawsuit it filed in 1991 against West Interactive Corp.
First Data said it will receive a $4.4 million initial payment plus continuing royalties.
The suit, filed in federal court in Los Angeles, alleged infringement of six of First Data's 25 interactive technology patents.
West Interactive, its chairman, Gary West, and Mary West signed a consent order admitting that the contested patents were valid and had been infringed.
Mr. West said, "We believe the FDR patents are basic to the interactive call-processing industry, and we are pleased with our agreement with FDR settling the litigation."
The interactive call-processing technologies were developed and patented in the 1980s by Ronald A. Katz, former vice chairman of First Data. The applications include telephone contests, polls, games, promotions, control, and data base systems.
First Data, best known to bankers as the processor of MasterCard and Visa accounts, said the patents have been assigned to Mr. Katz's licensing company. The terms of that transaction were not disclosed.