Fed. Circ. Upholds AmEx Win In Gift Card Patent Fight

Law360, Los Angeles (August 11, 2011, 3:30 PM EDT) -- The Federal Circuit on Thursday upheld a Wisconsin federal court's decision that American Express Co. prepaid gift cards did not infringe a retailer's patent covering so-called open loop technology that allows consumers to make online purchases.

A three-judge panel determined that the district court had been correct in holding that AmEx didn’t directly infringe the patent held by gift card company PrivaCash Inc. because the cards at issue could be canceled at any time by customers if they were lost or stolen.

AmEx's gift cards fell...
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