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Judge Kent A. Jordan: Summary Judgment of Invalidity Granted; Claim Construction of “Purchase Transaction”

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In Stored Value Solutions, Inc. v. Card Activation Technologies, Inc., C.A. No. 09-495-KAJ (D. Del. Jul. 1, 2011), Third Circuit Judge Kent A. Jordan, sitting by designation, issued a memorandum opinion granting the plaintiff’s motion for summary judgment of invalidity due to anticipation and obviousness. Id. at 2. Judge Jordan also granted the plaintiff’s motion for partial summary judgment of invalidity of certain patent claims due to lack of written description, and denied the defendant’s motion for summary judgment of validity and its motion to exclude the testimony of the plaintiff’s expert. Id.

The patent at issue disclosed a method for processing electronic transactions using a “Counter-Top Terminal System”—that is, transactions involving “an ATM card, prepaid debit card, or phone card.” Id. at 3. A key term in the patent was “purchase transaction[,]” which the defendant argued should include only transactions “in which goods or services are acquired through the payment of money.” Id. at 18. Judge Jordan disagreed, noting that the plain language of the claims showed that a “purchase transaction” occurred “when the value of a debit card is modified, including when it is increased.” Id. at 19 (emphasis added).

Thus, Judge Jordan construed “purchase transaction” broadly as “a transaction with the intended effect of decreasing the purchasing value of, increasing the purchasing value of, or activating a debit styled card.” Id. at 15. While noting that this construction was “somewhat different than the ordinary meaning of ‘purchase,'” Judge Jordan found this construction to be “the most reasonable one that would preserve the scope of the claims in the ‘859 patent and ensure that each preferred embodiment described in the patent is covered by a claim of the patent.” Id. at 25.


Stored Value Solutions, Inc. v. Card Activation Technologies, Inc., C.A. No. 09-495-KAJ (D. Del. Jul. 1, 2011)

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