A controversial amendment aimed at protecting banks from check-imaging patent infringement lawsuits could face new hurdles since its author, Sen. Jeff Sessions, R-Ala., withdrew his support over questions about its constitutionality.
"I looked at that real hard, and I think some of the objections are well-taken about the legality," Sen. Sessions said in an interview Tuesday. "I'm not sure we can do legally what we unanimously voted to do."
The Senate is to debate a bill on patent reform before Memorial Day. Sen. Sessions introduced an amendment last July that would exempt banks from paying damages for unlawfully using patented check-imaging technology.
The amendment is likely aimed at DataTreasury Corp., a company that holds several patents for check-imaging technology and has sued several major banking companies.
Some banks, including JPMorgan Chase & Co., have settled with DataTreasury. But six cases remain pending, against names as big as Wells Fargo & Co. and Bank of America Corp.
"It was just astounding to realize that the financial institutions went to Congress to buy themselves legislation that said, if you infringe these patents, you don't have to pay for it," said DataTreasury's founder, Claudio Ballard.
