Alexsam, Inc. v. IDT Corp.

Alexsam owns the 608 patent, which discloses a system for activating and using “multifunction card[s].” These cards include prepaid phone cards, used to pay for long-distance telephone calls, and electronic gift certificate cards. Such cards are typically distributed to retailers and displayed in stores in an inactive state, in order to deter theft, and are activated and assigned a cash value at the check-out counter. The claims at issue are drawn to a system for activating multifunction cards using a point-of-sale terminal, such as a cash register or a freestanding credit card reader. The district court held that certain of IDT’s systems infringed claims in the 608 patent and that these claims were not invalid, but that certain other systems were licensed under the claims. The Federal Circuit affirmed the judgment of no invalidity, reversed the jury’s finding of infringement with regard to IDT’s Walgreens and EWI systems, and affirmed the judgment of infringement with regard to IDT’s miscellaneous systems based on the district court’s discovery sanction. The court affirmed the judgment of noninfringement with regard to IDT’s SafeNet systems based on the license defense. View "Alexsam, Inc. v. IDT Corp." on Justia Law