LML Approaches the Bench... Again
LML is spending a lot of time in courthouses lately. As we reported in issue 01:02:01, the U.S. District Court, Southern District of Florida granted LML's motion to dismiss a complaint filed by Global Transaction Systems, LLC. The motion was dismissed for lack of subject matter jurisdiction.
In late January, LML requested sanctions against Global Transaction System's counsel citing Rule 11 of the Federal Rules of Civil Procedure. Rule 11 requires that any pleading, motion or other paper filed with a court must be well grounded in fact and warranted by existing law. LML has requested sanctions in the form of its attorney's fees and costs incurred in defending the action that was dismissed for lack of subject matter.
Then, in early February, LML Payment Systems Inc. and ChequeMARK Patent, Inc., its indirect, wholly-owned subsidiary, filed suit against Global Transaction Systems, on grounds of:
- Violation of the Federal Lanham Act's unfair competition provisions,
- Violation of common law, unfair competition, and wrongful interference with prospective economic advantage.
The suit also seeks a judgment that declares ChequeMARK Patent Inc., the sole owner of all right, title and interest in United States Patent Nos. 5,484,988 and 6,164,528 for a check writing point-of-sale system (see issue 01:01:02). The suit further declares any actions taken in derogation of such rights to be null and void, and therefore rescinded. The suit additionally seeks to restrain Global Transaction Systems and its agents from representing or implying that they have any ownership interest in the patents, or that they have the right or ability to provide electronic transaction processing services through use of the technology described in the patents.
LML Payment Systems is a financial payment processor specializing in providing end-to-end check processing solutions for national, regional and local retail merchants. The Corporation's intellectual property estate includes U.S. Patent No. 6,164,528 regarding Internet checking transactions, in addition to U.S. Patent No. 5,484,988,which describes a "Checkwriting point-of-sale system." For more information visit www.lmlpayment.com.
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