Free Motion in Limine - District Court of Arizona - Arizona

EXHIBIT B

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 1 of 14

Hypercom/Omron Meeting Phoenix, AZ September 16, 2004
presented by

Douglas Reich of Hypercom Corporation and

Sid Leach and David Caplan of Snell & Wilmer
Presented in accordance with F.R.C.P. 408

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 2 of 14

Presentation Outline · Hypercom/ Omron background · ITC l itigation
Analysis of U . S . Patent No . 5 , 012 , 077 Demonstration of T8 and ICE 6000 terminals · District Court li tigation -Analysis of U . S . Patent No . 4 , 678 , 895 Analysis of U . S . Patent No . 4 , 562 , 340 Analysis of U . S . Patent No . 4 , 562 , 341 · Discussion of additional patents

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 3 of 14

Brief background of Hypercom/Omron relationship
Omron approached Hypercom in 1983 with a proposal of cooperation between the two companies. In 1985 , Omron purchased a design of the FT10 terminal that was developed by Hypercom. In 1980s, The two companies worked together successfully - Omron manufactured POS terminals using Hypercom's electronics ' · Examples of terminals

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 4 of 14

ITC litigation
· Without any advance warning or discussion, Verve filed Complaint with the U.S. International Trade Commission on August 2, 2004. Asserted Patent - U.S. Patent No. 5,012,077. Also subJ'ect of Complaint filed by Verve in Northern District of California. Asserted claims - claims 1 and 2 . Accused products - T8 and ICE 6000 term i n als.

·

· ·

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 5 of 14

U . S . Patent No . 5, 012 , 077
· 4 Claims · 2 Independent claims - Claims 1 and 4. · Claim 1 -- "a card discriminator for automatically discriminating whether a card to be used is a credit card or a debit card by reading said data stored on said card 53
The term "automatically discriminates" was defined by ITC to mean "that the point of sale device determines whether the. card being used is a credit or debit card based upon,information embedded in the credit card or debit card without human intervention and then processes the transaction as either a credit or debit transaction."

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 6 of 14

` 077 File History
· April 16, 1996 -- Response to Office Action
Claim 1 amended to include "automatically". 3 "... a discriminator contained in the processing terminal determines whether that card is a credit card or a debit rely on the basis of data recorded on the card." card (emp^asis added ) 4 "A particular advantage of this invention, is that all,of the initial .discrimination steps occur automatically. 4 Savar reference was discussed - "There is no such teaching in Savar since only manual input of the cardtype is describecTbY Savar. · Demonstration of T8 and ICE 6000 - only manual inpu t of credit/debit card-type is provided for by T8 and ICE 6000 t erm in als.
4

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 7 of 14

U .S . Patent No . 4, 678,895 0 Filed October 27, 1953 · Issued July 7, 1957 · Expired July 7, 2004 · 12 Claims ; 6 -independent claims --1, 69 77 107. 11112. · Verve asserted atent in lawsuit, filed without warning in U.S. istrict Court , Eastern District of Michigan. · Lawsuit transferred to Arizona and then dismissed by Verve · Accused device - Hypercom's T7 Series terminals.

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 8 of 14

`895 Claims
· Claim 1 - a system that requires an electronic cash register. · Hypercom does not make cash registers. · T7 series terminals are counter-top, single-lane POS terminals that are not cash registers. · Claims 1, 69 10 require
4 "means for entering data relating at least to the prices of goods" and "means for calculating the total sum of the prices entered" 3 These are cash register functions 4 T7 terminals do not perform these functions

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 9 of 14

`895 Claims Continued
· Claim 7 distinctions · Claim 11 distinctions · Claim 12 distinctions
Requires cash register feature - "first means for setting data relating to a sum payable"

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 10 of 14

U .S . Patent No . 4 , 562 ,340
Filed October 18, 1983 Issued December 31, 1985 Expired October 18, 2003 7 Claims; 3 independent claims -1, 57 7 Verve asserted patent in 2nd amended complaint filed in U.S. District Court, Eastern District of Michigan. The court struck this complaint. File History -- 4/17/1984 response ^- "...which enables the payment of a credit card bill with funds taken from a bank account of a holder of both the credit card, and a bank card identifying the bank account."

·

·

Hypercom terminals do not read data from a credit card and a
bank card in same transaction.

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 11 of 14

U. S . Patent No . 4, 562 , 341
· · · · · Filed February 15, 1984 Issued December 31, 1985 Expired February 15, 2004 13 Claims; 2 independent claims - 1, 11 Verve asserted patent in lawsuit, filed without warning or attempt at discussion, in U.S. District Court, Western District of Texas. · Accused device - Hypercom's ICE 6000 terminals.

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 12 of 14

` 341 Patent Claims
· Claims require "cash registration " · Hypercom does not make cash registers · Hypercom 's terminals cannot perform " cash registration" · ICE 6000 is a peripheral to a cash register · ICE 6000 does not communicate with a "center" such as a " bank" or "credit company".

Case 2:04-cv-00400-PGR

Document 164-3

Filed 04/13/2007

Page 13 of 14

tsluOled - leu0inl!PPNf
Case 2:04-cv-00400-PGR Document 164-3 Filed 04/13/2007 Page 14 of 14