Card Patent Infringement Charge Against CUSOs and CUs
Two credit union service organizations and three credit unions were among defendants named on June 23 in a patent lawsuit brought by London-based technology vendor Serverside Group.
Serverside Group, which provides design, marketing and printing services to the international card payment industry, alleges the defendants “infringed upon U.S. patent right as to financial transaction card customization technology,” according to a company press release.
In any case, the three credit union defendants probably don’t have a reason to panic, said Paul Lerner, senior vice president and general counsel for Suffern, N.Y.-based General Patent Corp.
He said credit unions that allow members to order payment cards displaying personalized images are most likely providing the service through a third-party vendor. So in the case of Serverside’s patent suit, the burden would fall on the vendor providing the card customization technology, not the CU, he said.