We have now written two articles about the fact that Mr. Robert R. Hills and his company ChequeMARK Technologies Corporation are the holders of a U.S. patent number 5,484,988 on the Point-of-Sale Check Truncation process (or what we have referred to as a POST retail transaction), currently being piloted in various locals in the U.S. under the guidance of the Electronic Check Council. After reviewing this patent ourselves, it seems to us that a number of organizations, perhaps even Tele-Check, Inc., Visa, and MasterCard, should be concerned about this patent.
This patent covers the truncation of checks at the point-of-sale, using retail equipment to capture relevant information for later settlement of Demand Deposit Account information through the Automated Clearing House system (ACH). Mr. Hills and Mr. Henry R. Nichols, co-originators of the patent, had initially believed that their idea would come to market through their business relationship with Deluxe Check printers, and perhaps Deluxe's subsidiary SCAN (Shared Check Authorization Network), through whom the patent had been pledged via a business arrangement that has since been terminated.
"While we were working out our business arrangement, a number of companies began pilot programs that are clearly infringing on our patent, and we have begun to send out notices inviting these companies to discuss licensing," noted Mr. Hills in an interview with The Green Sheet in early December.
Mr. Hills is eager to resolve disputes or the possible infringement issues with companies currently operating any such pilot program, and is offering to enter into licensing arrangements with companies currently operating such POST or Electronic Check Presentment programs. Mr. Hills noted that ongoing discussions with CrossCheck, Inc., the largest privately owned Check Guarantee company in the nation, are very near agreement regarding a license, and Mr. Hills is negotiating similarly with a number of other interested parties not yet operating a program.
"I would very much like to resolve the licensing questions without resorting to the legal system, to the extent that the infringing organizations are willing to voluntarily license, and that reasonable agreements can be reached," noted Mr. Hills. "Where left no other options we will vigorously defend the integrity of our patent, including as necessary the pursuit of injunctive relief and past profits of those who are knowingly and maliciously continuing to infringe."
For voluntary compliance contact Robert Hills at (800)342-6275 or write ChequeMARK, 4440 North Oceanshore Blvd., Palm Coast, FL 32137.
