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U.S. Bancorp to appeal $53.2 million judgment

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A federal judge in Texas has ordered U.S. Bancorp to pay $53.2 million for infringing on a patent held by Plano, Texas-based DataTreasury Corp., the Minneapolis/St. Paul Business Journal reported.

U.S. District Judge David Folsom on Monday ordered that a $26.6 million judgment entered by a jury be doubled, ruling that enhanced damages would “more effectively punish the willful infringement.”

The jury found Minneapolis-based U.S. Bank and check processor Viewpointe Archive Services infringed on a check-imaging patent held by DataTreasury. DataTreasury said the industry saved about $2.1 billion — or about 5 cents per check — using the technology without licensing a patent.

DataTreasury spokesman Eric Wetzel said Wells Fargo & Co. and dozens of other banks have settled for undisclosed amounts and agreed to license the technology since the first suits were filed in 2002.

“Bank of America and the other defendants set for trial in October need to take notice because this decision by the court could set potential damages in that case somewhere between $2 (billion) and $3 billion,” he said.

U.S. Bank spokesman Steve Dale said an appeal is planned.

“We are disappointed with the court’s recent rulings, but remain confident that U.S. Bank did not infringe the patents at issue and that the patents will ultimately be held invalid,” Dale wrote in a statement. “U.S. Bank will pursue all avenues to protect its rights and will appeal.”