Verdict in check imaging case could have far-reaching implications for banks
American Banker | Monday, March 29, 2010
By Andrew Johnson
A federal jury has awarded $27 million in damages to a Plano, Texas, check-imaging technology provider, ruling U.S. Bancorp, The Clearing House Payments Co. LLC and Viewpointe LLC willfully infringed its technology.
The decision on Friday in the U.S. District Court for the Eastern District of Texas is the first jury verdict stemming from a series of lawsuits DataTreasury has filed over the past decade alleging widespread patent infringement against some of the country's largest banks. The patents, which the jury found to be valid, protect a system for the remote-image capture and centralized processing, storage and retrieval of documents and other paper transaction data.
The jury assessed 98.5% of the damages jointly against the Minneapolis bank holding company U.S. Bancorp and Viewpointe, a New York provider of check-image storage services.
The remainder was assessed jointly against U.S. Bancorp and The Clearing House, the New York operator of the Clearing House Interbank Payments System.