DataTreasury

In 2002, DataTreasury sued 56 banks and other companies, including JPMorgan Chase and First Data,[12] for infringing the Ballard patents.[13]

In 2003, the U.S. Congress passed the Check Clearing for the 21st Century Act, known as "Check 21". The act allows banks to take digital images of checks, exchange those images with other banks, and destroy the original paper copies.

By December 2004, two companies that DataTreasury had sued had settled.[3] Affiliated Computer Services, a large information technology supplier, paid $50,000, and the RDM Corporation, a small Canadian company that sells hardware and software for payment processing, agreed to "pay a fee for each check imaging terminal it deploys and 'a per-click royalty for storage of electronic documents and check information, calculated at around a 50 percent royalty rate,'" according to a DataTreasury press release reported by The New York Times.[3] In mid-2005, JPMorgan Chase settled their suit.[13][14][15] The pending suits were put on hold pending the outcome of a reexamination of the patents (see below), but after the USPTO confirmed the validity of the patents, the cases moved forward.[13]

The company relocated to Plano, Texas, in October 2005.[16]

In November 2005, First Data filed a request for a reexamination of the DataTreasury Ballard patents, citing numerous earlier publications that it claimed either anticipated the DataTreasury inventions or made them obvious. In 2007, the USPTO upheld both patents and further allowed DataTreasury to claim additional inventions that were disclosed but not claimed in the original applications.[17]

In August 2006, Merrill Lynch and DataTreasury settled their suit.[18]

In 2007, the United States Senate version of the Patent Reform Act of 2007 (S. 1145) moved forward with an amendment to Section 14 of the Act, supported by a number of financial services companies, which would prevent DataTreasury from collecting damages on the patents.[6] However, the Congressional Budget Office (CBO) predicted that if such a provision were passed, owners of check-processing patents (such as DataTreasury) would sue the federal government, arguing that their property had been unlawfully seized. The CBO estimated that the suit would have a high likelihood of success and that the government's liability from this lawsuit could reach $1 billion, to cover royalties of 5 cents per check, over the remaining life of the patents.[13][19]

On March 26, 2010, a jury found that U.S. Bank, Viewpointe, and Clearing House Payments Company and its subsidiary, SVPCo, were guilty of infringing DataTreasury's patents.[20][5][21] The jury entered a decision $26.6 million in damages and found that the infringement was willful. Because of the willful infringement finding, the trial judge doubled the damages.[21]

In February 2006, DataTreasury purchased four patents from WMR e-Pin, LLC. These patents were U.S. Patent 5,265,007, U.S. Patent 5,583,759, U.S. Patent 5,717,868, and U.S. Patent 5,930,778.

On February 24, 2006, DataTreasury filed an infringement suit with respect to these patents against 30 banks and other companies in the United States District Court for the Eastern District of Texas.[4][22][23]

The following banks and corporations have settled their lawsuits with DataTreasury and/or taken a license.[24][25]

• Affiliated Computer Services
• Bank of New York Mellon Corp
• Bank One
• Citibank
• City National Corporation[25]
• Community Banking Systems
• Compass Bancshares Inc.[25]
• Diebold
• First Data
• First Tennessee Bank
• Groupe Ingenico[26]
• Groupe Ingenico
• JP Morgan Chase
• Mellon Bank[25]
• Merrill Lynch
• NCR
• NetDeposit
• PNC Financial Services[27]
• RDM Corp