DataTreasury

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DataTreasury, located in Plano, Texas United States, develops and licenses technology for secure cheque image capture and storage. The company holds patents including US patent 5910988 and US patent 6032137 and related patent applications around the world.

Contents

[edit] Invention of secure check imaging technology

Ballard declaration on date of invention of secure check imaging.
Ballard declaration on date of invention of secure check imaging.

The secure check imaging technology claimed by the DataTreasury patents was invented by Claudio Ballard in July 1994.[1] He got his idea when he would meet regularly with his father at a local pizza diner after his mother passed away. When he saw the shoe boxes full of receipts that the restaurant kept for records, he realized that, if he could develop a secure method of image storage and replace the shoe boxes, it would be a tremendous help to these small businesses.[1]

Claudio built the original working prototype in 1995 at his own expense while he was unemployed. He filed his first patent application in August 1997 after receiving angel investment funding from an acquaintance, Peter Lupoli, who was impressed with the prototype's capabilities.[1] Patents were issued in 1999 and 2000 respectively[2] and, in 2002, DataTreasury licensed their first imaging system, eImageVault, to Bank Hapoalim of Israel.[3]

[edit] Company foundation

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Claudio Ballard founded DataTreasury in 1998 in Melville, NY.

DataTreasury has had as many as 100 employees, but currently only has two employees.[4]

DataTreasury currently owns 12 issued US patents and one pending US patent application. Some of these patents were invented by company founder Claudio Ballard. Others were acquired from the original owners, such as WMR e-pin and Hewlett Packard. DataTreasury has also sold a patent to another entity. [5]

[edit] Technology

Ballard's original scanning technology was piloted in collaboration with the Trinidad Investment Group (EDC Trinidad) in partnership with with the Caribbean Life Insurance Company.[citation needed] Based on over the horizon targeting technology developed at Stony Brook University, Ballard aggregated dual factor authentication and TWAIN technologies.[citation needed]

[edit] Patent infringement suits

[edit] Ballard Patents

In 2002, DataTreasury sued a number of banks and other companies for infringing the Ballard patents.[6][7]

Some financial institutions, including JPMorgan Chase and Merrill Lynch, settled the suits,[7][8] while suits against 56 other financial institutions are continuing.[7] These suits were put on hold pending the outcome of a re-examination of the patents, but after the USPTO confirmed the validity of the patents, the cases are now moving forward.[7]

Simultaneously with the suits, the United States Senate version of the Patent Reform Act of 2007 (S. 1145) is moving forward with an amendment to Section 14 of the Act, supported by a number of financial services companies, which would prevent DataTreasury from collecting damages on the patents. However, the Congressional Budget Office (CBO) predicts that if such a provision were passed, owners of check-processing patents (such as DataTreasury) would sue the federal government, arguing that their property had been unlawfully seized. The value of this lawsuit could reach $1 billion, this being the CBO's estimate for royalties the companies might otherwise be entitled to.[7][9]

Lobbying efforts associated with this bill have taken the unusual turn of bringing up personal information about Ballard and DataTreasury's chief executive officer, Keith DeLucia. DeLucia was convicted for robbing an armored car in 1991 when he was known as Keith Wickey[7][10] and a fraud case had been brought against Ballard in 1988 by his father, although it was ultimately dismissed.[7] DataTreasury has also been called a patent troll by lobbyists[7] with banks alleging that DataTreasury bought up patents for the system that underlies electronic transfers and is trying to shake down companies for licensing fees.[4]

DataTreasury has said that the lobbyists are using smear tactics attempting to assassinate the character of DataTreasury’s officers in an effort to bring in special interest legislation that would support large corporate infringers over small companies.[7] DataTreasury has also asserted that Ballard is the inventor of the system and built the company to sell it before the banks stole the idea.[4]

[edit] WMR ePin Patents

In February 2006, DataTreasury purchased four patents from WMR ePin. These patents were U.S. Patent 5,265,007 , U.S. Patent 5,583,759 , U.S. Patent 5,717,868 , and U.S. Patent 5,930,778 . On February 24, 2006, DataTreasury filed a complaint in the United States District Court for the Eastern District of Texas accusing over 30 banks and other companies of infringing the patents.[11] These cases are still pending.

[edit] Settlements

The following banks and corporations have settled their lawsuits with DataTreasury and/or taken a license.[12]

[edit] Patent reexamination

In November 2005, First Data Corporation filed a request for a reexamination of the DataTreasury Ballard patents citing numerous earlier publications that it felt either anticipated the DataTreasury inventions or made them obvious. In 2007, the USPTO upheld both patents and further allowed DataTreasury to claim additional inventions that were disclosed but not claimed in the original applications.[13][14]

[edit] References

  1. ^ a b c "Declaration of Caludio Ballard Regarding Conception and Reduction to Practice" submitted during re-examination of US patent 5910988. This declaration may be found using the USPTO Public File Inspection Service (PAIR) by searching for application serial number 90/007829, accessing the Image File Wrapper and opening the 7 page document titled "Rule 130, 131 or 132 Affidavits" with mail room date 01-30-2007
  2. ^ DataTreasury About US web page
  3. ^ "DataTreasury Inks Pact With Bank Hapoalim" DataTreasury press release, January 24, 2002.
  4. ^ a b c Jeffrey H. Birnbaum, "Lawmakers Move to Grant Banks Immunity Against Patent Lawsuit", Washington Post, February 14, 2008
  5. ^ USPTO assignment records for DataTreasury
  6. ^ "DataTreasury Corporation Files Lawsuits Against Bank of America, Citigroup, Wachovia and Wells Fargo; Suits Allege Infringement of Patented Check-Processing Technology" July 6, 2005
  7. ^ a b c d e f g h i Lisa Lerer, Senate, old legal woes drawn into patent fight, The Politico, March 25, 2008.
  8. ^ "NEWS RELEASE- World’s Largest Maker of Electronic Transaction Terminals Settles with DataTreasury" DataTreasury press release, November, 2005
  9. ^ Congressional Budget Office Cost Report, pages 2, 5 and 11
  10. ^ Michael Slackman, "Suspect Leads Cops to Cash" Newsday, 22 June 1991
  11. ^ DataTreasury v. Wells Fargo (Fed. Cir. 2008)
  12. ^ DataTreasury Press Release index
  13. ^ "The U.S Patent and Trademark Office has upheld substantially all of the claims..." Data Treasury press release July 10, 2007
  14. ^ USPTO Ex parte Reexamination Communication Transmittal Form” May 15, 2007

[edit] See also

[edit] External links