District Court Rejects Heartland’s Preliminary Injunction Request

A U.S. District Court in New Jersey last week rejected Heartland Payment Systems Inc.’s request for a preliminary injunction to prevent VeriFone Holdings Inc. from soliciting the payment processor's merchants who use VeriFone point-of-sale terminals, according to the terminal maker. Heartland is seeking to stop VeriFone from promoting a Web site where merchants may register for free terminal support directly through VeriFone to begin after Dec. 31, when VeriFone will stop providing Heartland with support. Heartland contends it can continue to support the terminals without VeriFone’s help. Judge Mary K. Cooper denied Heartland's request in an opinion dated Dec. 23, noting contradictory claims Heartland had made regarding its ability to provide ongoing service to clients using VeriFone systems, according to VeriFone. “The ruling means that despite Heartland’s considerable efforts, VeriFone can continue to offer direct support to Heartland merchants for VeriFone systems,” states a VeriFone spokesperson. Heartland is “disappointed” the judge denied the processor’s request for a preliminary injunction, the company said in a statement. “Heartland is considering its options with the circuit court. This opinion is a preliminary ruling, and Heartland intends to pursue damages in its state court action,” the statement said. The two companies are suing each other over a disagreement stemming from Heartland's development of an advanced encryption terminal. San Jose, Calif.-based VeriFone alleges Heartland is infringing on one of its patents; Princeton, N.J.-based Heartland claims VeriFone is engaging in unfair trade practices.