DataTreasury

DataTreasury is an American financial-technology company associated with the electronic capture, storage, and exchange of check images. The company developed, acquired, and licensed technologies intended to support the movement of check processing from paper-based workflows to digital imaging and centralized or distributed electronic storage. Its business has also been closely tied to a portfolio of patents covering aspects of check-image processing and related payment infrastructure. Claudio Ballard founded DataTreasury in 1998 in Melville, New York. The company was established to commercialize technology and patent applications connected with electronic check processing and payment operations. Patents associated with Ballard were issued in 1999 and 2000. According to Ballard, the young company faced severe financial pressure and nearly failed in late 2001. In 2002, DataTreasury obtained its first reported license for an imaging system, eImageVault, from Bank Hapoalim. DataTreasury's commercial development coincided with a major regulatory and operational change in U.S. banking. The Check Clearing for the 21st Century Act, commonly called Check 21, became law in 2003 and enabled banks to use digital check images for clearing, exchange those images with other institutions, and reduce reliance on transporting original paper checks. This environment increased the commercial relevance of check-imaging systems while also making the scope and validity of related patents strategically important. The company became especially prominent through patent litigation and licensing. Beginning in 2002, it sued dozens of banks, technology providers, and payment companies, alleging infringement of its Ballard patents. Defendants and counterparties included major financial institutions and payment-processing companies. Some matters ended in settlements or licenses, while others were delayed during patent reexamination proceedings. In 2007, the U.S. Patent and Trademark Office upheld the two Ballard patents under review and allowed additional claims based on disclosures in the original applications. DataTreasury subsequently continued pursuing infringement claims. In 2005, the company moved its headquarters from New York to Plano, Texas. It also expanded its patent position in 2006 by acquiring four patents from WMR e-Pin, LLC, followed by a separate infringement action against banks and other companies. A 2010 jury verdict found U.S. Bank, Viewpointe, and Clearing House Payments Company, together with its SVPCo subsidiary, liable for infringement of DataTreasury patents. The jury awarded $26.6 million in damages and found the infringement willful; the trial judge doubled the damages. DataTreasury's approach generated substantial criticism from parts of the banking and technology industries. Critics argued that the company relied heavily on patent enforcement rather than broad operating activity and described its litigation strategy as an example of abusive patent enforcement or patent trolling. DataTreasury and Ballard disputed that characterization, maintaining that Ballard had created the relevant system and that financial institutions had appropriated the idea. The company has also faced other litigation, including a claim by Ted Doukas concerning alleged financial participation in the development of the technology. That claim against DataTreasury and its officers and directors was dismissed in 2013, although the referenced material states that an appeal remained pending at that time. Publicly available reference material does not establish the company's current ownership, leadership beyond its founder, product portfolio outside its imaging and patent-related activities, financial condition, or present operating status. DataTreasury is therefore best characterized as a specialized fintech and intellectual-property licensing company whose historical significance lies in the intersection of electronic check processing, banking infrastru…

DataTreasury was founded by Claudio Ballard in 1998 in Melville, New York. Its purpose was to commercialize electronic check-processing and payment-processing technology associated with patent applications filed before or around the company's creation. Patents connected with Ballard were issued in 1999 and 2000. The company later described Ballard as the inventor of the relevant system and argued that the technology addressed a problem in banking: how to capture, transmit, store, and use check information electronically rather than moving paper checks between institutions. The company reportedly experienced serious financial difficulty in late 2001. Its first identified commercial milestone came in 2002, when Bank Hapoalim licensed eImageVault, an imaging system associated with DataTreasury. That same year, DataTreasury began a broad patent-enforcement campaign, suing 56 banks and other companies, including JPMorgan Chase and First Data. The cases placed the company at the center of a dispute over the ownership and scope of patents covering check imaging and electronic check clearing. The regulatory setting changed in 2003, when Congress enacted the Check Clearing for the 21st Century Act, or Check 21. The law allowed banks to rely on digital images of checks for clearing and exchange, reducing the need to transport original paper instruments. The development strengthened the practical importance of check-image systems and intensified the commercial stakes surrounding DataTreasury's patents. Several defendants settled or entered licensing arrangements. The referenced material identifies settlements or licenses involving companies including Affiliated Computer Services, Bank of New York Mellon, Bank One, Citibank, City National Corporation, Compass Bancshares, Diebold, First Data, First Tennessee Bank, Ingenico, JPMorgan Chase, Mellon Bank, Merrill Lynch, NCR, and PNC Financial Services. The reported terms varied. For example, Affiliated Computer Services paid $50,000, while RDM Corporation agreed to a fee structure involving deployed check-imaging terminals and royalties for electronic-document and check-information storage. JPMorgan Chase settled in 2005, and Merrill Lynch settled in 2006. DataTreasury moved its headquarters to Plano, Texas, in October 2005. First Data requested reexamination of the Ballard patents in November of that year, arguing that earlier publications anticipated the inventions or made them obvious. The U.S. Patent and Trademark Office later upheld both patents in 2007 and allowed additional claims based on inventions disclosed but not claimed in the initial applications. Pending litigation that had been paused during the review then proceeded. In February 2006, DataTreasury acquired four patents from WMR e-Pin, LLC. It filed a new infringement case on February 24, 2006, against 30 banks and other companies in the Eastern District of Texas. The company's enforcement activity also became part of a broader policy debate. A 2007 Senate version of the Patent Reform Act included an amendment supported by financial-services interests that would have limited DataTreasury's ability to collect damages. The Congressional Budget Office reportedly warned that patent owners could challenge such a measure as an unconstitutional taking and estimated potentially substantial federal exposure. A significant trial result came in March 2010. A jury found U.S. Bank, Viewpointe, Clearing House Payments Company, and SVPCo liable for infringing DataTreasury patents. It awarded $26.6 million and found the infringement willful, after which the trial judge doubled the damages. DataTreasury also faced a separate action from Ted Doukas, who claimed he had financially backed Ballard during development of the imaging technology and sought a share of the proceeds. The claim against DataTreasury and its officers and directors was dismissed in May 2013, although the referenced material says the dispute was still subject to appeal at that time. The company has attracted criticism because its public profile has been dominated by patent enforcement and licensing. Banking-industry representatives and other commentators characterized its approach as abusive patent litigation or patent trolling. DataTreasury rejected that description and maintained that Ballard had developed the underlying system and that banks had taken the idea. Available reference material does not provide enough information to establish DataTreasury's current ownership, leadership, financial performance, product activity, or operating status.

1. 2013Doukas claim dismissed

   A claim by Ted Doukas against DataTreasury and its officers and directors was dismissed, subject to the appeal status described in the reference material.

   Source
2. 2010Jury infringement verdict

   A jury awarded $26.6 million against U.S. Bank, Viewpointe, Clearing House Payments Company, and SVPCo and found the infringement willful.

   Source
3. 2007USPTO confirms Ballard patents

   The U.S. Patent and Trademark Office upheld the two Ballard patents under reexamination and allowed additional claims.

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4. 2006WMR e-Pin patent acquisition

   DataTreasury acquired four patents from WMR e-Pin and initiated a related infringement action.

   Source
5. 2005Headquarters moves to Texas

   DataTreasury relocated from Melville, New York, to Plano, Texas.

   Source
6. 2003Check 21 becomes law

   U.S. legislation authorized banks to clear checks using digital images, supporting the broader adoption of electronic check-processing workflows.

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7. 2002First reported eImageVault license

   Bank Hapoalim licensed DataTreasury's eImageVault imaging system.

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8. 2000Second Ballard-related patent issued

   A second patent associated with the company's electronic check-processing technology was issued.

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9. 1999Ballard-related patent issued

   A patent associated with the technology later commercialized by DataTreasury was issued.

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10. 1998DataTreasury is founded

    Claudio Ballard founded DataTreasury in Melville, New York, to commercialize electronic check-processing and related payment technology.

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A specialized financial-technology and intellectual-property company serving electronic check processing, image capture, storage, and related payment infrastructure.

• eImageVaultCheck-image imaging and storage system2002

  eImageVault was an electronic imaging system associated with DataTreasury's early commercial activity. It was intended to support the capture and storage of check images and related electronic documents, helping financial institutions reduce dependence on physical check handling. Bank Hapoalim was identified as its first reported licensee in 2002. The available reference material does not establish the system's later product versions, technical specifications, or current availability.

• Ballard patent portfolioFinancial-technology intellectual property1999

  DataTreasury's Ballard patent portfolio covered aspects of electronic check capture, processing, storage, and related payment operations. The company licensed the technology and enforced the patents through litigation against banks, payment companies, and technology providers. Two patents were reexamined after a request by First Data and were upheld by the USPTO in 2007, with additional claims permitted. The reference material does not provide a complete patent list or current legal status.

• WMR e-Pin patentsPayment-processing intellectual property2006

  In February 2006, DataTreasury acquired four patents from WMR e-Pin, LLC: U.S. Patent 5,265,007, U.S. Patent 5,583,759, U.S. Patent 5,717,868, and U.S. Patent 5,930,778. The acquisition expanded the company's intellectual-property position and was followed by an infringement action against 30 banks and other companies. Available material does not describe the patents' technical scope in sufficient detail to characterize them further.

• 2006WMR e-Pin patent enforcement campaign

  United States

  After acquiring four WMR e-Pin patents, DataTreasury filed an infringement suit against 30 banks and other companies in the Eastern District of Texas.

  Outcome. The available reference material does not provide a complete outcome for all defendants.

  Source
• 2002Ballard patent licensing and enforcement campaign

  United States

  DataTreasury pursued licensing and infringement claims against banks, payment processors, and technology companies based on patents associated with Claudio Ballard's electronic check-processing technology.

  Outcome. The campaign produced a combination of settlements, licenses, ongoing litigation, and patent reexamination proceedings.

  Source

• 2010Pursue damages after willful-infringement verdictOther

  DataTreasury's case against U.S. Bank, Viewpointe, Clearing House Payments Company, and SVPCo reached a jury trial.

  What changed. The company pursued the case through trial, resulting in a $26.6 million jury award and a finding of willful infringement.

  Aftermath. The trial judge doubled the damages following the willfulness finding.

  Jury damages award. $26.6 million (2010)

  Source
• 2007Continue enforcement after patent reexaminationOther

  First Data had requested reexamination of the Ballard patents, arguing that earlier publications undermined their validity.

  What changed. After the USPTO upheld both patents and allowed additional claims, DataTreasury's paused infringement matters proceeded.

  Aftermath. The patent confirmation strengthened DataTreasury's position in subsequent litigation, including the 2010 jury case.

  Source
• 2006Acquire four WMR e-Pin patentsM&A

  DataTreasury sought to broaden its intellectual-property position in payment-processing technology.

  What changed. The company purchased four patents from WMR e-Pin, LLC.

  Aftermath. DataTreasury filed a new infringement case against 30 banks and other companies based on the acquired patents.

  Source
• 2005Relocate headquarters to PlanoOther

  DataTreasury operated from Melville, New York, during its early development and litigation activity.

  What changed. The company moved its headquarters to Plano, Texas, in October 2005.

  Aftermath. The relocation established Plano as the company's reported headquarters.

  Source
• 2002Pursue patent licensing and litigationStrategy

  DataTreasury held patents relating to electronic check processing as banks and payment companies were adopting image-based workflows.

  What changed. The company combined technology licensing with infringement lawsuits against banks, payment processors, and technology suppliers.

  Aftermath. The strategy generated settlements and licenses but also attracted sustained criticism from the banking industry and patent-policy commentators.

  Source

• 2004Criticism of DataTreasury's patent-litigation modelControversy

  Commentators and banking-industry representatives criticized DataTreasury for appearing to derive much of its public activity from suing companies over acquired or enforced patents. Critics described the company and its legal strategy as examples of patent trolling or abuse of the patent system, while DataTreasury argued that Ballard had invented the underlying technology and that banks had appropriated it.

  Source

• 2013Claim against DataTreasury and its officers is dismissed

  The referenced material states that Doukas's claim against DataTreasury and its officers and directors was dismissed in May 2013, with an appeal reportedly remaining pending at that time.

  Lawsuit
  Source
• 2011Ted Doukas brings a financial claim against DataTreasury

  Ted Doukas sued DataTreasury, alleging that he had financed Claudio Ballard's work and was entitled to a share of proceeds from the technology. The referenced claim sought $15 billion.

  Lawsuit
  Source
• 2010Jury finds infringement by U.S. Bank, Viewpointe, and Clearing House entities

  A jury found the defendants liable for infringing DataTreasury patents, awarded $26.6 million in damages, and found the infringement willful. The trial judge doubled the damages.

  Lawsuit
  Source
• 2007USPTO upholds DataTreasury's Ballard patents

  Following a reexamination request by First Data, the U.S. Patent and Trademark Office upheld the two Ballard patents under review and permitted additional claims based on disclosed subject matter.

  Other
  Source
• 2006DataTreasury acquires WMR e-Pin patents and files another infringement case

  The company purchased four patents from WMR e-Pin, LLC and filed an infringement action against 30 banks and other companies in the Eastern District of Texas.

  LawsuitOther
  Source
• 2005DataTreasury relocates headquarters to Plano

  DataTreasury moved its headquarters from Melville, New York, to Plano, Texas.

  Other
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• 2003Check 21 increases the relevance of electronic check imaging

  The U.S. Check Clearing for the 21st Century Act authorized the use and exchange of digital check images in clearing operations, creating a more favorable regulatory environment for technologies of the type developed and licensed by DataTreasury.

  Regulation
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• 2002DataTreasury files patent-infringement actions against banks and payment companies

  DataTreasury sued 56 banks and other companies, including JPMorgan Chase and First Data, alleging infringement of patents associated with electronic check processing and imaging.

  Lawsuit
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• 2002DataTreasury licenses eImageVault to Bank Hapoalim

  Bank Hapoalim became the first reported licensee of DataTreasury's eImageVault imaging system.

  Product launch
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1. DataTreasury