LML Settles Litigation Against Major Payment Processors

LML Patent Corp., a wholly owned, indirect subsidiary of LML Payment Systems Inc. announced today that Telecheck Services Inc., Telecheck International Inc. and First Data Corp., Electronic Clearing House Inc. and its wholly owned subsidiary XPressChex Inc. and Nova Information Systems Inc. have settled litigation filed by LML in the US District Court for the District of Delaware alleging the defendants infringe LML’s patents.

A Settlement and License agreement provides ECHO with a license to LML’s patents for electronic check conversion in the Direct Consumer Field (NACHA standard entry class code “POP”), including LML’s U.S. Patent Nos. 5,484,988; 6,164,528; and 6,283,366. Terms of this Settlement and License Agreement are confidential.

NOVA also settled litigation and entered into a patent license agreement. The agreement provides NOVA with a license to LML patents for electronic check conversion, including LML’s U.S. Patent Nos. 5,484,988; 6,164,528; and 6,283,366. Terms of this Settlement and License Agreement are confidential.

The Corporation also announces that it has settled all litigation between First Data and LML, including litigation in the U.S. District Court for the Eastern District of Texas, and entered into a cross-patent license agreement with First Data. The Settlement and License Agreement provides First Data with a license to LML’s patents for electronic check conversion, including LML’s U.S. Patent Nos. 5,484,988; 6,164,528 and 6,283,366. The settlement agreement also provides LML with a cross-license to First Data’s U.S. Patent Nos. 5,679,938 and 5,679,940.

“We are extremely pleased to have settled our litigation with First Data, ECHO and NOVA and we welcome them as valued licensees,” said Patrick H. Gaines, chief executive officer and president of LML and the Corporation.