SOURCE: Blackhawk Networks

Blackhawk Networks

February 29, 2012 20:19 ET

Blackhawk Network Responds to Patent Infringement Decision

PLEASANTON, CA--(Marketwire - Feb 29, 2012) - Blackhawk Network, Inc. was found by a jury in the United States District Court for the Western District of Wisconsin to infringe two claims of a patent. The patent infringement case against Blackhawk was filed by e2Interactive, Inc. and Interactive Communications International, Inc. on October 14, 2009 and related to eight lines of source code that were part of Blackhawk's gift card activation platform, but not used. Blackhawk has since removed the portions of the unused code found to infringe. This modification has no effect on how Blackhawk operates and has no impact on its customers.

On February 28, 2012, the same jury directed Blackhawk to pay damages in the amount of $3.475 million to the plaintiff for the period from August 2009 through February 2012, with no further payments due as the result of Blackhawk's removal of the lines of code. While the damages represent an immaterial impact to Blackhawk's financial results for these periods, Blackhawk is weighing whether to file an appeal.

The same court previously found that Blackhawk did not infringe the claims of a second patent asserted by InComm relating to adding value to customer accounts at retail points of sale.

About Blackhawk Network
Blackhawk Network, a subsidiary of Safeway Inc., is a leading provider of prepaid and financial payments products for consumers and businesses. The company's Gift Card Mall™ offers the industry's most popular prepaid gift card and telecom products. Gift Card Mall reaches more than 165 million people each week through a network of leading grocery stores, big box, convenience, pharmacy, and specialty stores and is available through Internet retailers including GiftCardMall.com. Blackhawk Network's business solutions include reward and incentive programs that offer choice and flexibility through a wide array of card brands, custom designed Visa® prepaid cards and fulfillment options. Headquartered in Pleasanton, California, Blackhawk Network Inc. has offices in the United States, Australia, Canada, France, Mexico and the United Kingdom. For more information about Blackhawk Network visit www.blackhawknetwork.com.