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Why SmartMetric, Inc. (SMME) Has An Edge On Its Patent Battle With Visa And MasterCard 0 comments
Apr 4, 2013 5:31 PM | about stocks: SMME.OB
SmartMetric is a biometric security solutions company. Its principle product, Biometric Datacard, is a portable biometric identity and transaction card with the capability to securely store personal information for use by personal, government, and corporate customers.
This fall SmartMetric will head to court and toe up to Visa and MasterCard as the company sues the credit card giants for patent infringement of the company's contactless biometric technology.
The suit was filed in August 2011, in which SmartMetric alleges that Visa and MasterCard have infringed on the company's "464" patent, which covers "contact" and "contactless" smart card technology specifically when used on ATM and banking cards. Both credit card companies have started issuing data cards and credit cards with contactless technology, which SmartMetric contends is in direct violation of its patent.
The first tussle of the current suit was immediate as Visa and MasterCard filed a motion that would prevent SmartMetric CEO and product inventor Chaya Hendrick from viewing certain material under discovery while allowing SmartMetric's lawyers access. SmartMetric argued that the motion was unfair in that it excluded the person most familiar with the technical analysis of the product at stake.
The District Court of California sided with SmartMetric and on December 3, 2012, issued a ruling against the motion and set the hearing for September 2013.
SmartMetric is confident that a trial by jury, which the company itself requested, offers the opportunity for the company to present and win its case. In a recent press release, Hendricks asserted "when the 12 good Citizens of California are presented with the facts of our case up against the legal might of Visa and MasterCard that justice will prevail."
Trial by jury was fruitful for small-cap IP company Vringo, Inc. (NYSE MKT: VRNG), which is currently in similar litigation with Google, AOL, Gannett, Target, and IAC Search & Media, as well as with ZTE and Microsoft. While the suit with Microsoft has been somewhat of a circus with various errors, disagreements, and a lot of waiting, a jury did recently find that the company's patents are valid and were infringed upon. Now, VRNG is in settlement discussions with Microsoft regarding the computer company's Bing search engine.
Investors should take careful note of the court's decision to toss out Visa and MasterCard's motion to exclude Hendrick from viewing certain material as it suggests the material in question may be pertinent to SmartMetric's allegations. Not to mention the nature of the motion insinuates there is information the card companies believe is worth protecting.
By this point, SmartMetric has considerable amount of research on hand to present its case before a jury. It knows its position, knows its argument, and knows them well. The company will hash it out with Visa and MasterCard in September 2013.
For more information on SmartMetric, visit smartmetric.com
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