CAT Patent Infringement Suits Could Spread to Others in Prepaid

An April 2008 featured article by Paybefore (an industry resource for prepaid and stored value cards) staff states, in part:

Chicago-based Card Activation Technologies, Inc. (CAT) is suing major retailers, including Barnes & Noble, Aeropostale, OfficeMax, TJX Companies, Sears and Walgreen Co. for infringement of its patent related to gift card activation and processing.

While the company’s focus is squarely on retailers, for now, lead counsel Mark D. Roth, of Orum & Roth LLC, tells Paybefore that there are other potential infringers, such as banks, processors and even terminal manufacturers that CAT could pursue in the future.

The full article is available to subscribers here.

CAT stated the following in an April 23, 2008 press release:

The Card Activation patent relates to a method used by most retailers for processing debit styled cards, which include gift cards and phone cards. Card Activation currently has lawsuits pending against Walgreen Company (NYSE:WAG), Sears Holding Corporation (Nasdaq:SHLD), TJX Companies (NYSE:TJX) and OfficeMax ((NYSE:OMX), as well as Barnes & Noble and Aeropastale. Card Activation has also placed on notice approximately 600 retailers relating to their potential infringement of the patent.