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California Company Targets Loyalty Programs With Patent Suit

Law360 (August 8, 2005, 12:00 AM EDT) -- In a legal assault that targets large swaths of the travel and financial-services industries, a small California company has filed a patent infringement lawsuit against travel-services giant Cendant Corp. over a widely used business method.

California-based Source, Inc. filed the complaint Friday in Texas federal court against Cendant Corp., the world’s largest provider of real-estate and travel-related services.

Source’s patents cover a widely-used customer rewards method used by an array of industries, from grocery store chains to college savings programs. The process is intended to maintain...
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