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In 2014, virtually all of Maine's Credit Unions received demand letters from Automated Transactions LLC ("ATL"), as the licensee of the patent owner, alleging that the use and operation of ATMs infringed certain patents on remote terminal technology. Your League and Maine's credit unions successfully advocated for the passage of Patent Troll legislation last session that addressed this issue moving forward but still left pending claims in limbo.
As part of this shakedown, ATL threatened to sue the credit unions unless they paid a fee for a license in the technology. These patents were of dubious validity, so ATL deliberately set the fee at less than what it assumed would be the costs to defend the threatened lawsuit – this cost is referred to as "nuisance value" in the legal profession. What ATL did NOT count on was that Maine's Credit Unions, with the help of your League, would band together and use their combined strength to mount a unified defense against ATL. By standing firm in their convictions, Maine's Credit Unions took a calculated risk – the patents were validly issued and they could have been locked in long-term litigation; there was also a possibility that they might lose and be forced to pay damages. However, the strategy of joining a group defense, coordinated and facilitated by Adrian Kendall of League counsel Norman, Hanson & DeTroy, and litigated by patent attorney Robert Stier, Jr. of Pierce Atwood, paid off.
Kendall explained, "The joint defense group's aggressive defense forced ATL to dismiss all of its cases involving the group members and all Credit Union members have now received releases and covenants not to sue from ATL and the ATM patent holder. This victory is just another great example of what Maine's Credit Unions can accomplish when they work together to do the right thing."
Your League's President John Murphy said, "This has been an issue that has caused significant concerns to Maine credit unions over the past year and, while the legislation dealt with future frivolous claims, the outcome of this litigation was still out there. It is gratifying to see it ruled in our favor, and we appreciate the hard work of all involved."