CardXX Acts To Protect Its Patent Rights In Advanced Smart Card Technology

(Seattle, Washington) July 17, 2013 — CardXX, Inc. (Symbol CXCQ) has sued Dynamics Inc. and other Defendants for patent infringement in the U.S. District Court for Seattle. The lawsuit, filed earlier this month, alleges that Defendants infringe several claims from two of CardXX’s patents (U.S. Patent Nos. 8,012,809 and 8,324,021) covering advanced smart card technology (cards with microprocessors, batteries, and other electronic components). The complaint, which seeks both damages and injunctive relief, details CardXX’s efforts to reach out to Defendant Dynamics prior to bringing suit. “In approximately July and August of 2012,” the Complaint alleges, “Paul Reed, CardXX’s President and CEO, repeatedly called Dynamics personnel . . . including Jeff Mullen, President and CEO of Dynamics . . . to notify them about CardXX’s technology and patent rights, including the ’809 patent.” After receiving no response to these and other communications, CardXX filed the lawsuit, asserting that advanced smart cards such as the ePlate™ card, made by Dynamics, infringe its patent claims. CEO Paul Reed noted that “CardXX’s technology utilizes a low-temperature and low-pressure injection molding method for making powered smart cards with advanced electronics. Our patents cover both the method and the cards themselves. Importantly, CardXX has among the only proven technology for high-volume, reliable production of advanced smart cards. Most other methods use high heat and pressure that can damage the electronic components of the cards.”

CardXX is in the business of inventing, designing, making, and selling advanced smart cards, and licensing advanced smart card technology and related innovative manufacturing technology. Among other things, CardXX is currently working with a number of partners on the components and designs for a variety of advanced smart cards, including powered biometric smart cards with integrated fingerprint sensors on the surface and the ability to match a user’s fingerprint with an on-card template so no external database is required.