A Partnership in Patents -- and Litigation

By Wade, Will | American Banker, March 6, 2006 | Go to article overview

A Partnership in Patents -- and Litigation


Wade, Will, American Banker


When William Randle left Huntington Bancshares Inc. in 2001, he took with him four patents covering various electronic payment technologies.

Since then he has tried to persuade several major banks to license those patents, but to no avail. Now he has joined forces with a company that has emerged in recent years as an aggressive player in the patent litigation field.

DataTreasury Corp., a Melville, N.Y., company that offers transaction processing and archiving software, is perhaps better known for its legal successes. It claims that its patents are crucial elements of check image exchange systems. It has numerous infringement lawsuits pending against banking companies and technology vendors, and has won some significant licensing deals after filing suits.

Mr. Randle said that he was in no position to mount court battles, but that DataTreasury was already doing so. The net effect of his February sale of the four patents to DataTreasury was to outsource their enforcement, he said.

"Having a patent is one thing, but being able to enforce them is something altogether different," he said Thursday.

A suit DataTreasury filed Feb. 24 in U.S. District Court for the Eastern District of Texas accuses 56 banks, bank holding companies, providers of check image-exchange services, and other technology vendors of infringing on the four patents.

These include Bank of America Corp., Wells Fargo & Co., Wachovia Corp., SunTrust Banks Inc., and First Horizon National Corp. "We don't believe there is any validity to the allegations against Wells Fargo, and we plan to vigorously defend ourselves," wrote Julia S. Tunis, a spokeswoman for that company, in an e-mail. Representatives for the other banking companies either did not return calls or said they could not discuss the suit.

Neither DataTreasury nor Mr. Randle would say how much he got for the patents, but the deal gave him a seat on the company's board.

Ed Hohn, a lawyer with Nix, Patterson & Roach LLP of Daingerfield, Tex., is DataTreasury's lead attorney. He declined to say whether Mr. Randle would share in any settlement payments or licensing revenue, but he added: "What's good for DataTreasury will also be good for Bill."

Mr. Randle said that in the past few years he had offered licensing deals for his patented technologies to several major banking companies. "They came back and said, 'We're not going to do it -- not going to license them,' " he said.

As a small-business owner he felt unprepared to initiate a patent-infringement suit. "It takes a great deal of resources to engage them in a process that would end in licensing," he said.

But DataTreasury, already engaged in litigation on similar issues with many of the same companies, was in an ideal position to do so, he said.

Other small patent holders may be drawn to DataTreasury for the same reason, Mr. Randle said. "The mission of DataTreasury is to license patents" and derive value from them, he said. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

A Partnership in Patents -- and Litigation
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.