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Best Buy, McDonald's Defense In Gift Card IP Row Fails

Law360, New York (June 3, 2013, 6:02 PM EDT) -- A Texas federal judge on Monday said Alexsam Inc. had not committed inequitable conduct during a re-examination of its patents for gift card activation technology, rejecting a defense put forward by Best Buy Co. Inc. and other retailers that the company is suing for infringing the patents.

District Judge Michael Schneider said the retailers, which among others include McDonald's Corp. and The Gap Inc., had failed to substantiate their allegation that, during a review by the U.S. Patent and Trademark Office, the inventor who devised the patented card charging system had tried to dupe patent examiners.

The retailers had argued that...

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