Bloomberg News

On Track Innovations Sues T-Mobile Over Phone-Payment Patent

March 27, 2012

On Track Innovations Ltd., a developer of digital payment technology, sued Deutsche Telekom AG’s (DTE) T-Mobile USA (166783Q) for allegedly infringing a patent for mobile transactions.

On Track Innovations said T-Mobile infringed a patent that lets mobile-phone users make payments, mine data and run other applications, according to the complaint filed yesterday in federal court in Manhattan.

“We believe in the strength and value of our intellectual property and have the resources to protect it,” Oded Bashan, chief executive officer of Rosh Pina, Israel-based On Track Innovations, said in a statement.

The complaint describes the patent, registered in April 2000, as “a data transaction card having contact and contactless modes of operation.” On Track Innovations claims that T-Mobile has been selling devices such as the HTC Amaze 4G and Nokia Astound that employ the data transaction patent.

“T-Mobile does not provide comment on pending litigation,” Anna Friedges, a spokeswoman for the Bellevue, Washington-based company, said in an e-mail.

On Track Innovations rose 18 cents, or 12 percent, to $1.64 at 3:41 p.m. in New York. The shares had risen 25 percent this year before today.

The case is On Track Innovations Ltd. (OTIV) v. T-Mobile USA, 12-2224, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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