LevelUp Announces Dismissal of Patent Infringement Claims

BOSTON, MA–(Marketwired – Jan 24, 2014) – LevelUp, the nation’s largest mobile payment network, announces today that Albert Freeman, a patent holder that sued LevelUp in September 2013 for alleged patent infringement, has voluntarily dismissed all claims against LevelUp. LevelUp, which respects the valid intellectual property rights of all persons, responded to Mr. Freeman’s Complaint in November 2013 denying any infringement and asserting its own claim that Mr. Freeman’s allegations against LevelUp violated California’s Unfair Competition Law. LevelUp is pleased and vindicated by Mr. Freeman’s decision to dismiss his allegations of infringement by LevelUp without further unnecessary litigation. Mr. Freeman’s dismissal of all allegations against LevelUp, and all claims of patent infringement, were not made pursuant to any negotiated settlement or agreement with LevelUp, and LevelUp provided no payment or other consideration to Mr. Freeman in connection with the dismissal. Mr. Freeman’s Complaint against LevelUp was filed in the United States District Court for the Northern District of California (Case No. 13-cv-04294-WHO).

LevelUp supports the ongoing national discussion and efforts to ensure that the United States patent system serves its goal of protecting inventors and innovative companies, without becoming a weapon for abuse through baseless claims of patent infringement and costly litigation. The costs to defend baseless allegations of patent infringement, or against patents of dubious validity, are enormous. Many companies simply cannot afford to defend themselves against baseless infringement claims. Even companies that can defend themselves often choose to “settle” or offer a large, but still smaller than the cost of litigation, payment to make the case go away. While LevelUp respects the rights of all valid patent holders and strongly believes in the importance of a responsibly-used patent system, baseless litigation is a dangerous and expensive trend that harms innovation and the national economy.

In November, LevelUp was proud to host the Attorney General of Massachusetts, Martha Coakley, at LevelUp’s downtown Boston headquarters to discuss ways that technology companies can combat the ever-present threat of baseless patent litigation, including through state laws prohibiting “unfair and deceptive” trade practices. Attorney General Coakley shared her views on the importance of the issues at stake and ideas of how her office could lend a hand to supporting the Innovation Economy in Massachusetts. Massachusetts is already home to a bustling cluster of payments, biotech, software and other technology related companies and the Attorney General’s work will only serve to further cement Massachusetts position as a leader in innovation.

About LevelUp

LevelUp is a revolutionary new way to pay. Users pay with their phone, saving time and money. Businesses pay lower payment processing fees and reinvest those savings into growing their businesses by attracting new customers and bringing them back. LevelUp is a part of SCVNGR, which is backed by Google Ventures, Balderton Capital, Continental Investors, Highland Capital, Transmedia Capital and T-Venture, the venture arm of Deutsche-Telekom.