The Green Sheet Online Edition
January 23, 2012 • Issue 12:01:02
Fiserv sues FIS over alleged patent infringement
Fiserv Inc. subsidiaries CheckFree Corp. and CashEdge Inc. filed a patent infringement suit against Metavante Corp. and Fidelity National Information Services Inc. (FIS) on Jan. 5, 2012, in the U.S. District Court for the Middle District of Florida. The suit alleges Metavante and FIS are violating CheckFree and CashEdge patents on technology having to do with electronic bill payment and presentment and account-to-account transfers.
The complaint alleges three specific infringements of patented technologies, though Fiserv said it may add additional patent infringement claims after discovery into the defendants' systems and services. The three patented technologies now at issue are the:
- CheckFree Dynamic Biller List Generation (U.S. Patent No. 7,792,749 or the '749 Patent)
- CheckFree Systems and Methods for Risk Based Determination of a Form for Crediting a Payee on Behalf of a Payer (the '524 Patent)
- CashEdge Method and Apparatus for Managing Multiple Accounts (the '223 Patent)
The complaint alleges, "Instead of competing fairly, however, defendants are exploiting the innovative technologies that CheckFree and CashEdge have worked hard to develop and protect through patents. For example, defendants have infringed, and continue to infringe, the '749 Patent, the '524 Patent and the '223 Patent by providing customers financial and payment solutions that process payment instructions, provide electronic biller notification, and/or process account-to-account funds transfer transactions."
Fiserv asked the court for a jury trial if any issues go to trial. It also asked the court for a judgment that the patents were infringed by the defendants; a permanent injunction prohibiting further patent infringement; an order requiring FIS and Metavante to pay damages, costs expenses, and interest; and an order awarding CheckFree and CashEdge attorney fees.
Fiserv issued a statement that said, "Fiserv is a leader in providing innovative and complex technology solutions and has devoted significant resources developing and maintaining an extensive intellectual property portfolio. These valuable assets, and the patent protection Fiserv has been granted, enable Fiserv to create and deliver cutting-edge technologies that meet evolving market needs. We have a responsibility to protect our intellectual property from further infringement and exploitation."
Fiserv acquired CheckFree in 2007 and CashEdge in 2011. The complaint noted that when Fiserv purchased CheckFree, the company had 4,000 associates and its products were used to process more than 75 percent of the automated clearing house transactions in the United States. When Fiserv bought CashEdge, the company serviced more than 500 financial institution clients and employed more than 300 people worldwide. In 2009, CashEdge processed almost $50 billion in online funds transfers.
FIS did not respond to a request for comment.
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