Current Cases/News

DataTreasury Patent Litigation

March 5, 2008

  • Case Caption: U.S. District Court for the Eastern District of Texas
  • DataTreasury v. Wells Fargo, et al., Case No. 2:06-CV-72 (Marshall)
  • DataTreasury v. Wells Fargo, et al., Case No. 2:05-CV-291 (Marshall)
  • DataTreasury v. Bank of America Corp., et al., Case No. 2:05-CV-292 (Marshall)
  • DataTreasury v. Wachovia Corp., et al., Case No. 2:05-CV-293 (Marshall)
  • DataTreasury v. Citigroup, et al., Case No. 2:05-CV-294 (Marshall)
  • DataTreasury v. First Data Corp., et al., Case No. 5:03-CV-39 (Texarkana)
  • DataTreasury v. Remitco/IPS, Case No. 5:05-CV-173 (Texarkana)
  • DataTreasury v. MagTek, Inc., Case No. 2:03-CV-459 (Marshall)
  • DataTreasury v. J.P. Morgan Chase & Co., et al., Case No. 5:02-CV-124(Texarkana)
  • DataTreasury v. Ingenico, S.A., et al., Case No. 5:02-CV-95 (Texarkana)

In multiple patent infringement lawsuits filed mostly in the United States District Court for the Eastern District of Texas, NPR serves as lead counsel on behalf of plaintiff DataTreasury Corporation, a Plano, Texas-based check-processing company which owns pioneering patents involving image capture, centralized processing, and the electronic storage of document and check information. DataTreasury's lawsuits are focused primarily against major financial institutions DataTreasury believes have infringed and continue to infringe DataTreasury's patents via these financial institutions' systems, methods, and processes for imaging, transmitting, processing, and storing checks and check images.

The validity of DataTreasury's patents has been tested and proven. Seeking to invalidate DataTreasury's patents, in November 2005, defendant First Data Corporation requested that the U.S. Patent and Trademark Office conduct ex parte reexaminations of two key DataTreasury patents ­ U.S. Patent No. 5,910,988 and 6,032,137. However, by December 2007, the PTO had concluded its reexaminations and not only reaffirmed the validity of each of the 93 original claims in both patents, but went further and approved the addition of 97 additional new claims.

Since this litigation begin in 2002, NPR has negotiated and obtained settlements and/or licensing agreements on DataTreasury's behalf with major players in the financial industry including JPMorgan Chase, Bank One, NCR, Merrill Lynch, Diebold, Ingenico, MagTek, ACS, RDM, Net Deposit, and Community Banking Systems. The litigation is ongoing against many major financial institutions including Wells Fargo, Bank of America, Wachovia, First Data, and Citibank.

The DataTreasury patents at issue in the litigation are:

  • U.S. Patent No. 5,910,988 "Remote Image Capture with Centralized Processing and Storage"
  • U.S. Patent No. 6,032,137 "Remote Image Capture with Centralized Processing and Storage"
  • U.S. Patent No. 5,265,007 "Central Check Clearing System"
  • U.S. Patent No. 5,930,778 "System for Expediting the Clearing of Financial Instruments and Coordinating the Same with Invoice Processing at the Point of Receipt"
  • U.S. Patent No. 5,717,868 "Electronic Payment Interchange Concentrator"
  • U.S. Patent No. 5,583,759 "Mechanism for Expediting the Deposit, Transport and Submission of Checks into the Payment System"

The DataTreasury litigation has been featured in stories by the Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021303731.html?nav=emailpage , New York Times http://www.nytimes.com/2004/12/25/business/25patent.html?ex=1261630800&en=ae2c34eb6062948d&ei=5090&partner=rssuserland, and Wall Street Journal.

Significant events in the DataTreasury litigation include:

  • On December 25 2007, the PTO issued the Ex Parte Reexamination Certificate as to the Œ137 Patent, thereby reaffirming the validity of each of the 43 original claims and adding 24 additional claims.
  • On October 23, 2007, the PTO issued the Ex Parte Reexamination Certificate as to the Œ988 Patent, thereby reaffirming the validity of each of the 50 original claims and adding 73 additional claims.
  • In August 2006, NPR negotiated a worldwide licensing agreement with financial giant Merrill Lynch as to six of DataTreasury's financial transaction patents.
  • In March 2006, DataTreasury filed patent infringement lawsuits in the U.S. District Court for the Eastern District of Texas against over 30 major financial institutions including Bank of America, Citigroup, Wachovia, Wells Fargo, SunTrust, EDS, The Clearing House Payments Company, PNC, KeyBank, and many others for their infringement of U.S. Patent Nos. 5,910,988; 6,032,137; 5,265,007; 5,583,759; 5,717,868; and 5,930,778.
  • In November 2005, NPR settled on its patent infringement lawsuit brought against France's Groupe Ingenico, the world's foremost maker of point-of-sale electronic transaction terminals. The terms of the settlement are confidential. As part of the settlement, Groupe Ingenico filed a Consent Judgment with the Court that acknowledges the validity and enforceability of DataTreasury's patents.
  • In June 2005, DataTreasury and NetDeposit, Inc., entered into a settlement that resolved DataTreasury's patent infringement lawsuit against NetDeposit, which also licensed DataTreasury's patents.
  • In June 2005, DataTreasury filed patent infringement lawsuits in the U.S. District Court for the Eastern District of Texas against banking giants Bank of America, Citigroup, Wachovia, and Wells Fargo for their infringement of U.S. Patent Nos. 5,910,988 and 6,032,137.
  • In June 2005, NPR successfully obtained a confidential settlement with banking giants JPMorgan Chase and Bank One as to U.S. Patent Nos. 5,910,988 and 6,032,137. As part of the settlement, JPMorgan Chase and Bank One entered into Consent Judgments that acknowledge the validity and enforceability of DataTreasury's patents.
  • On February 28, 2005, Judge David J. Folsom of the Texarkana Division of the U.S. District Court for the Eastern District of Texas issued a "Markman" order defining the meaning of important claim language in U.S. Patent Nos. 5,910,988 and 6,032,137, thereby determining the scope of the property rights covered by DataTreasury's patents.
  • In June 2002, DataTreasury filed patent infringement lawsuits in the U.S. District Court for the Eastern District of Texas against banking giant J.P. Morgan Chase Co. for its infringement of U.S. Patent Nos. 5,910,988 and 6,032,137.