SVS declares victory in CAT case

Ceridian Stored Value Solutions (SVS) said a panel of the United States Court of Appeals for the Federal Circuit affirmed SVS's 2011 victory in a patent infringement lawsuit filed by Chicago-based processor Card Activation Technologies Inc. SVS said the ruling vindicates SVS's position that its gift card technology does not infringe on CAT's patent.

In 2009, CAT sued several national chain store businesses, claiming they were using CAT's patented technology for the activation and processing of gift and other stored-value cards. CAT sought royalties from the companies for their card practices. Additionally, CAT wanted an injunction against the companies issuing gift cards until the companies obtained licenses from CAT.

SVS, the gift card processor for businesses named in CAT's suit, sued CAT in return. The U.S. District Court for the Northern District of Illinois, Eastern Division, ruled in favor of SVS. CAT then appealed. The subsequent legal wrangling resulted in the December 2012 ruling by Judge Kent A. Jordan of the United States Court of Appeals for the Second Circuit.

"The decision is a significant milestone in SVS's efforts to protect its customers from infringement actions based on invalid patent claims," said Steve Stevenson, President at SVS.

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