CyberSource Loses Legal Battle - Patent Invalidated

Retail Decisions (ReD), a world leader in card fraud prevention and payment processing today announces that its USA subsidiary, ReD Inc, has won its long-standing patent litigation against CyberSource in the Northern District of California, USA.

Chief Judge Marilyn Patel ruled from the bench that all asserted claims from CyberSource's U.S. Patent No. 6,029,154 are invalid based on the patentability standard articulated in In re Bilski. The patent relates to processes for detecting fraud in credit card transactions. CyberSource had alleged that the innovative ReD Shield and ebitGuard fraud detection products offered by Retail Decisions infringed several claims from the ‘154 patent.

The ruling represents a victory for Retail Decisions in a case originally filed in August 2004. According to Judge Patel, CyberSource's patent did not satisfy either prong of the "machine-or-transformation" test In Bilski, and the patent was completely lacking innovation.
"The court’s ruling is very important." said Carl Clump, Chief Executive Officer of ReD. "The court’s decision demonstrates that ReD has always acted fairly and responsibly. We are disappointed that this case had to go to court to demonstrate this."

"This is a significant result for Retail Decisions, and it should have a positive impact on consumers and merchants across a variety of industries," said Scott Bornstein, Co-Chair of the Patent Litigation Group at Greenberg Traurig and lead counsel for Retail Decisions. The Greenberg Traurig Litigation team also included Allan Kassenoff, a shareholder in the New York office and Jim Soong, a shareholder in the Silicon Valley office. James Myers from Ropes and Gray also assisted in the case.