March 26, 2009, 12:00 AM

CyberSource plans to appeal ruling in patent dispute with Retail Decisions

A federal court in California this week ruled in favor of Retail Decisions in a lawsuit brought by CyberSource over a patent for fraud-detection technology. CyberSource will appeal.

Retail Decisions, a provider of payment processing and fraud-detection services for online retailers, has won a round in court against competitor CyberSource Corp., in a lawsuit over patents. CyberSource says it will appeal.

The decision dismissing CyberSource’s claims came this week from U.S. District Court Judge Marilyn Patel of the Northern District of California. CyberSource filed suit in 2004, claiming infringement of a patent it holds on technology for detecting credit card fraud.

“The court’s ruling is very important,” says Carl Clump, CEO of Retail Decisions, also known as ReD. “The court’s decision demonstrates that ReD has always acted fairly and responsibly. We are disappointed that this case had to go to court to demonstrate this.”

“When Judge Patel issues the written decision and a judgment is entered, we will be filing a Notice of Appeal with the Federal Circuit Court of Appeals,” says a CyberSource spokesman. CyberSource had no further comment.

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