Two credit union service organizations and three credit unions were among defendants named this week in a patent litigation suit by London-based technology vendor Serverside Group, the company said.
Serverside Group, which provides design, marketing and printing services to the international payment card industry, alleges defendants “infringed upon its U.S. patent right as to financial transaction card customization technology,” it said in a press release.
The suit was filed in U.S. District Court in Delaware.
The 15 defendants listed by Serverside Group include PSCU Financial Services in Florida, The Members Group in Iowa and among the private companies, JHA Payment Processing Solutions, part of Jack Henry & Associates of Monett, Mo.
Serverside Group also chose two St. Louis credit unions – the $1.3 billion Anheuser-Busch Employees CU and $274 million Neighbors CU – along with the $753 million Credit Union 1 of Anchorage.
“These companies have been selected for patent litigation because they are using card customization technology, which Serverside Group alleges to be an infringement of its U.S. patent rights,” Dominic Hiatt of Rhizome PR in London told Credit Union Times on behalf of Serverside Group.
Serverside Group did not give specifics of the infringements made by the CUs or CUSOs, but said the litigation involves two of its U.S. patents, both of which concern the company’s core card customization technology.
“Our belief in card customization has been vindicated by the many millions of cardholders we have served and, unfortunately, the number of competitors now offering copy-cat services,” said Serverside Group President Adam Elgar. “They have been using our technology without compensating Serverside for the extensive development costs.”
A statement from PSCU Financial Services said the company is awaiting a copy of the suit filed by Serverside Group to understand and evaluate the claims made by the plaintiff.
"We believe we are not infringing on the company's patents for card customization technology," the big Florida CUSO said.
A spokesperson for Jack Henry & Associates said the company could not comment at this time.