Patent Case... Here's what I was able to dig up..
http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=7278027-67797-70233&SessionID=C0gVFv7XX3IQcl7
Item 1. Legal Proceedings
Other than as set forth below and as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on April 15, 2010, we are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
On March 20, 2009, a civil lawsuit was filed in Hillsborough County, Florida Circuit Court by CheckSavers LLC and Paul Linehan. The lawsuit alleged that CheckSavers was granted certain rights to US Patent 7,389,913 “Method and Apparatus for Online Check Processing” by Mr. Starrs. CheckSavers LLC had entered into a Reseller Agreement with MyECheck, however no rights to exploit the Patent were granted.
The case was continued until March of 2010 when the Plaintiff withdrew the lawsuit. There was a considerable amount of legal work performed to prepare for trial and a legal liability was incurred in the amount of $60,817.48.
Because MyECheck is the sole licensee of the Patent, is the only entity authorized to use the technology, is earning money from the use of the technology and the Company relies on the Patent for intellectual property protection, it is in the best interest of MyECheck to ensure that the Patent is defended and protected. Therefore the Board of Directors has approved the payment of the liability for the legal expenses associated with this matter. Mr. Starrs has subsequently filed a Patent infringement claim against CheckSavers and Mr. Linehan in Federal court.
On March 31, 2010 the Company entered in a settlement agreement and subsequently issued 275,000 shared of common stock to settle the lawsuit against the Company and its Chief Executive Officer that was filed in 2005. The value of the stock on the date of the settlement agreement was $46,750 or $0.17 per share.
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