LML settles cheque imaging patent litigation with three US banks

LML Patent Corp. ("LML"), a wholly-owned, indirect subsidiary of LML Payment Systems Inc. (the "Corporation") (Nasdaq:LMLP) announced today that it has received total payment in the amount of $1,315,000 and has entered into Settlement and License Agreements (the "Agreements") with each of Regions Bank ("Regions"), Fifth Third Bank ("Fifth Third") and Marshall & Ilsley Bank ("M&I") with respect to litigation filed by LML in the U.S. District Court for the Eastern District of Texas alleging that each of Regions, Fifth Third and M&I infringed U.S. Patent No. RE40,220.

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The Agreements provide each of Regions, Fifth Third and M&I with a fully paid-up license to certain LML patents for electronic check conversion transactions including "ARC", "WEB", "POP", "TEL" and "BOC" and have as their basis, each licensees' transaction volume.

"We are extremely pleased to have settled our litigation with Regions, Fifth Third and M&I, and we welcome them as valued licensees," said Patrick H. Gaines, chief executive officer.

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