Source: LML Patent Systems
LML Patent Corp. ("LML"), a wholly-owned, indirect subsidiary of LML Payment Systems Inc. (the "Corporation") (Nasdaq:LMLP), announced today that it has agreed to terms regarding entering into a Settlement and License Agreement (the "Agreement") with JP Morgan Chase Bank, NA. ("JP Morgan"), the last remaining defendant in the litigation filed in November 2008 by LML in the U.S. District Court for the Eastern District of Texas alleging infringement of U.S. Patent No. RE40,220.
The terms of the Agreement include providing JP Morgan with a fully paid-up license to certain LML patents for electronic check conversion transactions including "ARC", "WEB", "POP", "TEL" and "BOC". JP Morgan has agreed to pay LML $4,500,000 in connection with the Agreement.
Patrick H. Gaines, LML's Chief Executive Officer, commented, "When faced with the uncertainty surrounding the length of a stay or whether any future stays would have been granted, along with the uncertainty of the ultimate outcome of the litigation as well as the cost and expense that we would have incurred in continuing to prosecute the litigation, we felt that it was in the best interests of LML and its shareholders for us to agree to this settlement amount, which had been proposed and strongly recommended by a court-appointed mediator. As we wind down our prosecution of the patent litigation, we note that we have obtained in excess of $45 million in settlements from the defendants in the patent litigation, which we believe has and will continue to help us greatly as we continue to focus on building our core business."