MShift Loses Appeal of Patent Suit Dismissal
Mobile banking technology provider MShift has lost its appeal of the dismissal late last year of a patent infringement suit it filed against Intuit Financial Services and several banks and credit unions.
The Fremont, Calif., company claimed that IFS and the other defendants infringed on its 2005 patent for linking technology between mobile devices and online banking networks after the software was licensed to the former Digital Insight, which IFS bought in 2007.
U.S. District Judge William Alsup of the Northern District of California dismissed the suit on Oct. 8. MShift’s appeal of the dismissal was dismissed on July 8 by the U.S. Circuit Court of Appeals for the Federal Circuit in Washington, D.C.
Credit unions named in the suit were the $717 million Meritrust CU of Wichita, Kan., the $330 million Professional FCU of Fort Wayne, Ind., the $723 million Fort Worth Community CU in Texas and the $712 million USE CU in San Diego. Also named were several banks and Mobile Money Ventures LLC, a joint venture of Korea’s SK Telecom and Citigroup which has just sold its technology assets to IFS.
MShift got early traction among credit unions and said it now provides mobile banking technology to about 200 financial institutions, including a majority of the 50 largest credit unions. Calabasas, Calif.-based IFS said about half of its 1,900 clients are credit unions.