We have learned that a company, Automated Transactions, LLC, is now targeting banks throughout Georgia alleging patent infringement with respect to ATM technology. This entity has also targeted banks in other states, including several New England states. Automated Transactions claims that it has exclusive rights to certain ATM technologies and that banks, through the use of their ATMs, are infringing upon those rights. A number of banks in Georgia have received a demand letter from Automated Transactions, and we understand that more banks in Georgia will be targeted. We want banks to understand the issue being raised and be prepared to respond. Please click here for a Bryan Cave memo that analyzes the allegations being made.
In order to respond to these allegations effectively, we believe Georgia banks should undertake a concerted response. If attacking the merits of the patents, we expect that there would be numerous issues on which banks would share a position. If licensing discussions were to be pursued, Georgia banks will have more bargaining leverage working as a group. In any event, the more banks involved, the greater the impact they can have in any discussions and the smaller the cost per bank.