Good news for retailers who offer gift cards to their customers
for use in stores. For the second time in recent weeks, a
jury found that a major retailer has not infringed patents related
to prepaid gift cards. In the case of Alexsam Inc. v. The
Gap Inc., et al, Case No. 2:13-cv-00004-MHS-CMC, Alexsam, a
non-practicing entity (sometimes called by the less-complimentary
moniker "patent troll"), sued The Gap for violating two
patents that cover systems and methods for putting money onto store
gift cards and activating the same at the point of sale.
After six months of litigation in the Eastern District of
Texas' "rocket docket," a popular federal court for
patent litigation, Alexsam's infringement claims were rejected
by a jury. The Gap decision follows a similar
non-infringement determination for Barnes & Noble who was also
able to convince a jury that it also did not violate Alexsam's
patent rights.
