LANHAM, Md. EZShield, a provider of identity management solutions, filed suit in federal court here last week claiming its long-time business partner Harland Clarke is infringing on its new patent for its check fraud protection program that Harland Clarke is marketing as CheckArmor.
EZShield, based in Palo Alto, Calif., received a U.S. Patent on the program on Jan. 1, then filed its infringement suit against the nation’s biggest check printer the following day.
“Harland Clarke knowingly infringed EZShield’s long standing intellectual property,” said Dale Dabbs, CEO of EZShield. “While fair competition in the marketplace is part of doing business, we are disappointed that Harland Clarke, a longtime EZShield partner, ignored EZShield’s rights and copied its Check Fraud Protection Program. This lawsuit seeks appropriate remedies for Harland Clarke’s infringement.”
EZShield’s Check Fraud Protection Program is a method to help protect consumers against losses associated with specified forms of check fraud, including forged signatures, forged endorsements, altered checks and kiting, and under certain circumstances will advance up to $25,000 within 72 hours to victims who subscribe to the program.
EZShield applied for a patent for “System and Method of Providing Recovery to Victims of Check Fraud” in October 2003 and was issued the patent Jan.1, 2013.
Representatives of Harland Clarke, a unit of M&F Worldwide Corp., did not immediately respond to a request for comment.
The suit seeks a declaration that Harland Clarke is infringing on the EZShield patent and an order to damages.