LML Patent Corp. ("LML"), a wholly-owned subsidiary of LML Payment Systems Inc. (the "Corporation") (NASDAQ:LMLP) filed suit today in the U.S. District Court for the District of Delaware against four companies who provide equipment, systems and services that convert paper checks presented at the point of sale into electronic transactions.
In the suit, LML alleges that Telecheck Services Inc., Electronic Clearing House Inc., Xpresschex Inc. and Nova Information Systems Inc. infringe U.S. Patent Nos. 5,484,988; 6,164,528 and 6,283,366. LML is seeking damages, injunctive and other relief for the alleged willful infringement of these patents.
"The filing of this lawsuit is consistent with our strategic objective to develop revenue streams from the licensing of our intellectual property," said Patrick H. Gaines, chief executive officer and president of LML Patent Corp. and LML Payment Systems Inc. "During the fiscal year ended March 31, 2004, we awarded a non-exclusive license to Verus Financial Management Inc., which is one of our competitors providing electronic check conversion services at the point of sale. We will not allow Telecheck and ECHO and its wholly-owned subsidiary Xpresschex, and Nova to use our intellectual property without a proper license."
LML is represented by Russell E. Levine, P.C., Christian Chadd Taylor, Edward K. Runyan and Soo Choi of the Chicago office of law firm Kirkland & Ellis LLP. In January 2004, Kirkland & Ellis ranked as a top three finalist in The American Lawyer's "IP Litigation Department of the Year" survey. In the 2003 IP Law & Business Survey, "Swords and Shields", Kirkland & Ellis ranked first among all firms of patent cases handled. Kirkland & Ellis also is the No. 1 Intellectual Property Department as ranked by Fortune 250 companies in Corporate Counsel's "Who Represents America's Biggest Companies" survey.