LML Payment Systems has settled litigation with PayPal and agreed terms of a Settlement and License Agreement to the tune of $7.5m. In 2008 LML complained that PayPal along with other institutions were infringing their patents for electronic cheque transactions.
Other companies recently settled with LML including Citigroup for another $7.5m and HSBC for $5.5m with the settlements based on each companies transaction volume. As a side note that indicates that PayPal is bigger then HSBC for electronic cheque payments.
Following the settlements Phase I trial in the Patent Litigation which was scheduled to commence March 21, 2011, has been cancelled. Phase II and Phase III trials remain set to commence on the 4th October 2011.
7 Responses
Is this a corporate shakedown?
https://www.google.com/patents?id=S0eoAAAAEBAJ&dq=RE40220
I don’t know how vague patents or even patents that describe a process that hundreds of banks use every day could somehow be a patent?
7.5 m is pocket money to paypal, its all just corporate money swopping
they all piddle in the same pot
The bigger companies get the harder the fall. Look what happened to Marconi.