DataTreasury

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In 1998, Claudio Ballard founded DataTreasury in Melville, New York, with the intention to market electronic check processing and related payment-processing tools using patents prosecuted and filed prior to DataTreasury's founding.{{Cite patent|country=US|number=6032137|pubdate=2000-02-29|title=Remote image capture with centralized processing and storage|assign1=CSP Holdings Inc. LLC|inventor1-last=Ballard|inventor1-first=Claudio R.}}{{Cite patent|country=US|number=5910988|pubdate=1999-06-08|title=Remote image capture with centralized processing and storage|assign1=CSP Holding Inc. LLC|inventor1-last=Ballard|inventor1-first=Claudio R.}} Patents were issued in 1999 and 2000.[http://www.datatreasury.com/aboutus.htm DataTreasury "About Us" web page]

According to Ballard, DataTreasury almost went out of business in late 2001.

In 2002, DataTreasury licensed their first imaging system, eImageVault, to Bank Hapoalim.Staff, Technology Marketing Corporation, January 30, 2002 [http://www.tmcnet.com/biomag/enews/013002c.htm Data Treasury Signs Agreement With Israel-Based Bank]

In 2002, DataTreasury sued 56 banks and other companies, including JPMorgan Chase and First Data,Robin Sidell for The Wall Street Journal. December 14, 2004 [https://www.wsj.com/article/0,,SB110297429699598894-email,00.html J.P. Morgan Is Sued Over Patents For Check-Processing Technology]{{Dead link|date=July 2022 |bot=InternetArchiveBot |fix-attempted=yes }} for infringing the Ballard patents.Lisa Lerer, [http://www.politico.com/news/stories/0308/9202.html Senate, old legal woes drawn into patent fight], Politico, March 25, 2008.

In 2003, the U.S. Congress passed the Check Clearing for the 21st Century Act, known as "Check 21". The act allows banks to take digital images of checks, exchange those images with other banks, and destroy the original paper copies.

By December 2004, two companies that DataTreasury had sued had settled.{{Cite news|url=https://www.nytimes.com/2004/12/25/business/25patent.html |title=Small Company Is Specializing in Suing Banks |author=Kingson, Jennifer A. |accessdate=2008-09-08 |date=2004-12-25 | work=The New York Times}} Affiliated Computer Services, a large information technology supplier, paid $50,000, and the RDM Corporation, a small Canadian company that sells hardware and software for payment processing, agreed to "pay a fee for each check imaging terminal it deploys and 'a per-click royalty for storage of electronic documents and check information, calculated at around a 50 percent royalty rate,'" according to a DataTreasury press release reported by The New York Times. In mid-2005, JPMorgan Chase settled their suit.DataTreasury press release, July 6, 2005 [http://www.thefreelibrary.com/JPMorgan+Chase+and+DataTreasury+Corporation+Settle+Landmark...-a0133795758 JPMorgan Chase and DataTreasury Corporation Settle Landmark Patent-Infringement Litigation; Bank Licenses DataTreasury's Check-processing Technology] {{Webarchive|url=https://web.archive.org/web/20160305105100/http://www.thefreelibrary.com/JPMorgan+Chase+and+DataTreasury+Corporation+Settle+Landmark...-a0133795758 |date=2016-03-05 }}[http://www.datatreasury.com/pdf/jpmorgan.pdf United States District Court for the Eastern District of Texas] The pending suits were put on hold pending the outcome of a reexamination of the patents (see below), but after the USPTO confirmed the validity of the patents, the cases moved forward.

The company relocated to Plano, Texas, in October 2005.DataTreasury Press Release, February 17, 2006 [https://archive.today/20130121144408/http://www.datatreasury.com/news_details.php?newsId=113 DataTreasury Shifts HQ to Texas]

In November 2005, First Data filed a request for a reexamination of the DataTreasury Ballard patents, citing numerous earlier publications that it claimed either anticipated the DataTreasury inventions or made them obvious. In 2007, the USPTO upheld both patents and further allowed DataTreasury to claim additional inventions that were disclosed but not claimed in the original applications.Staff, Digital Transactions. Oct. 30, 2007. [http://www.digitaltransactions.net/news/story/1556 Other Shoe Drops As USPTO Affirms Second DataTreasury Patent]

In August 2006, Merrill Lynch and DataTreasury settled their suit.Steve BIlls. August 15, 2006. [https://web.archive.org/web/20160303212901/http://connection.ebscohost.com/c/articles/21983210/merrill-lynch-signs-datatreasury Merrill Lynch Signs With DataTreasury] American Banker 171(156):18

In 2007, the United States Senate version of the Patent Reform Act of 2007 (S. 1145) moved forward with an amendment to Section 14 of the Act, supported by a number of financial services companies, which would prevent DataTreasury from collecting damages on the patents. However, the Congressional Budget Office (CBO) predicted that if such a provision were passed, owners of check-processing patents (such as DataTreasury) would sue the federal government, arguing that their property had been unlawfully seized. The CBO estimated that the suit would have a high likelihood of success and that the government's liability from this lawsuit could reach $1 billion, to cover royalties of 5 cents per check, over the remaining life of the patents.[http://www.cbo.gov/ftpdocs/89xx/doc8981/s1145.pdf Congressional Budget Office Cost Report], pages 2, 5 and 11

On March 26, 2010, a jury found that U.S. Bank, Viewpointe, and Clearing House Payments Company and its subsidiary, SVPCo, were guilty of infringing DataTreasury's patents.{{Cite web |url=http://www.startribune.com/business/85244607.html |title="Banking dispute involving U.S. Bank is going to 3 trials" Minneapolis Star Tribune, February 24, 2010 |website=Star Tribune |access-date=March 15, 2010 |archive-url=https://web.archive.org/web/20100330041421/http://www.startribune.com/business/85244607.html |archive-date=March 30, 2010 |url-status=dead }}Robin R. Richardson and DD Turner for marshallnewsmessenger.com, March 26, 2010. [https://archive.today/20130129001539/http://www.marshallnewsmessenger.com/news/banks-lose-patent-suit/article_2479f2b2-3957-11df-8366-001cc4c002e0.html Banks lose patent suit: DataTreasury awarded $26.6M]Jim Hammerand for the Minneapolis / St. Paul Business Journal/ September 28, 2010 [http://twincities.bizjournals.com/twincities/stories/2010/09/27/daily20.html U.S. Bank ordered to pay $53 million in check imaging lawsuit] The jury entered a decision $26.6 million in damages and found that the infringement was willful. Because of the willful infringement finding, the trial judge doubled the damages.

In February 2006, DataTreasury purchased four patents from WMR e-Pin, LLC. These patents were {{US Patent|5,265,007}}, {{US Patent|5,583,759}}, {{US patent|5,717,868}}, and {{US patent|5,930,778}}.

On February 24, 2006, DataTreasury filed an infringement suit with respect to these patents against 30 banks and other companies in the United States District Court for the Eastern District of Texas.Dan Browning for the Minneapolis StarTribune February 24, 2010. [http://www.startribune.com/business/85244607.html Banking dispute involving U.S. Bank is going to 3 trials] {{Webarchive|url=https://web.archive.org/web/20100330041421/http://www.startribune.com/business/85244607.html |date=2010-03-30 }}Patently-O. Apr 17, 2008 [http://www.patentlyo.com/patent/2008/04/arbitration-agr.html Arbitration Agreement Does Not Encumber Patent]Jeremiah Armstrong for Mondaq. June 20, 2008. [http://www.mondaq.com/unitedstates/x/61860/Patent/That+Check+Wont+ClearPatent+Assignee+Not+Bound+By+Assignors+Arbitration+Agreement United States: That Check Won’t Clear—Patent Assignee Not Bound By Assignor’s Arbitration Agreement]

The following banks and corporations have settled their lawsuits with DataTreasury and/or taken a license.[http://www.datatreasury.com/news.asp DataTreasury Press Release index]{{Dead link|date=July 2019 |bot=InternetArchiveBot |fix-attempted=yes }}Staff, Digital Transaction News, September 9, 2008 [http://www.digitaltransactions.net/news/story/1910 "Latest DataTreasury Settlements Add to Pressure on Defendants"]

• Affiliated Computer Services
• Bank of New York Mellon Corp
• Bank One
• Citibank
• City National Corporation
• Compass Bancshares Inc.
• Diebold
• First Data
• First Tennessee Bank
• Groupe Ingenico[http://www.datatreasury.com/pdf/ingenico.pdf United States District Court for the Eastern District of Texas]
• Groupe Ingenico
• JP Morgan Chase
• Mellon Bank
• Merrill Lynch
• NCR
• PNC Financial Services[http://datatreasury.com/pdf/PNCs_Consent_Judgment_-_Doc___910.pdf United States District Court for the Eastern District of Texas]

In April 2011, Ted Doukas sued DataTreasury claiming that he was a financial backer of Claudio Ballard when Ballard was working on the image capture technology and was therefore entitled to one half of the proceeds from the invention. The total amount sought was $15 billion.[http://www.newsday.com/long-island/nassau/investor-sues-nassau-da-kathleen-rice-seeks-370m-1.3283226 Andrew Smith, "Investor sues Nassau DA Kathleen Rice, seeks $370M", Newsday, October 29, 2011] Doukas' claim was dismissed against DataTreasury (and its officers and directors) in May 2013. The case is currently pending appeal.{{Cite web |url=http://www.herrick.com/siteFiles/News/918E2ED4F528F29F72DFEB9A0404FACE.pdf |title=Gregory Zeller, "Doukas Case Dismissed", Long Island Business News, May 24-30, 2013 |access-date=2013-06-30 |archive-url=https://web.archive.org/web/20160304034834/http://www.herrick.com/siteFiles/News/918E2ED4F528F29F72DFEB9A0404FACE.pdf |archive-date=2016-03-04 |url-status=dead }}

In 2004, The New York Times characterized DataTreasury as "a company whose only business, other than one client, appears to be suing other companies." The banking industry has accused DataTreasury of abusing the patent system by buying the patents they are enforcing.Jeffrey H. Birnbaum for The Washington Post, February 14, 2008. [https://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021303731.html?nav=emailpage Lawmakers Move to Grant Banks Immunity Against Patent Lawsuit] Former congressman Steve Bartlett said that DataTreasury's lawsuits are "an example of what's wrong with patent law", while Stephen Boyd characterized the company's lawyers as patent trolls.

DataTreasury has stated that Ballard is the inventor of the system and built the company to sell it before the banks stole the idea and nearly destroyed his business.

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