Datatreasury Corporation v. Wells Fargo & Company et al

Filing 776

CLAIM CONSTRUCTION BRIEF filed by Datatreasury Corporation re #742 Claim Construction Brief,,,,,,. (Attachments: #1 Exhibit A#2 Exhibit B#3 Exhibit C#4 Exhibit D#5 Exhibit E#6 Exhibit F#7 Exhibit G)(Cooper, Rodney)

Datatreasury Corporation v. Wells Fargo & Company et al

Doc. 776 Att. 6

Case 2:06-cv-00072-DF-CMC

Document 776

Filed 08/23/2007

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EXHIBIT "F"

Dockets.Justia.com

Case 2:06-cv-00072-DF-CMC

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IN TIIE UNITED STATE|S DISTRICT COURT FORTIIE EASTERNDISTRIC'TOF TEXAS MARSHALL DIVISION
DATATREAST]RYCORPORATION, Plaintitr

CITIGROUPINC., CITIBANK, NATIONAI ASSOCIATION,

Defendants

$ $ $ $ $ $ $ $ $ $ $ $

Civil Action No.: 2:05-CV-294.

AIIFIDA\'IT OF TERRY L. GEER ST AT E OF OHrO COUNTYOFJACKSON $

$
$

1. My nameis Terry L. Gecr. I arnov6r twenty-one(21) yearsofage, ofsound mind andcompetent makethis AJfidavit. I havepersonalhrowledgeof the matten to statedhereirl which arc true andoorrect. 2. I worked at HuntingtonNatioml Bank for 3? years" nost of it in Operations, PrivateFinancialGroup andTrcasrry Management I retiredas a SeniorVice President 2000. I haveover thirty yearsofexperiencein CheckProcesslng in and Float Management. haveparticipatedin several I p,rofessional associationa for examplethe AmericanBankers'Associertion the UnisysUsers&oup. I led and the effort to createtheNational Clearinghouse Assooiationafter ptitioningthe FederalReserve Bank for approxirnately four years. I alsoinitiated the movment within the HuntingtonNational Bank to generate technolog andnrlesand the regulations requiredto nm the National (llearinghouse. 3. I am a co.inventorof U.S. PatentNo. 5j165,007(,the '007 Patent). I am tle sole inventorof U.S. PatentNo. 5"583,759 ('the '?59 Patenf) andU.S. patentNo. 5,930,718(the'778 Patenf). I haverecentlycarefullyrereadandanalyzed each of thesethreepatents. With my yers of experience, considermyself morethan I qualified asa personofordinary skill in theart ofthese threepatents. In my opinion, a personof ordinaryskill in the art would havea minimum of 2-4 years of direct expedence fhe following arelrs in ofbanking: bank operationgfloat management basicaccounting, and checkpmcessing operations, clearing and

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houseoperalions certainbankingpa,yment and nrlesandFederalResene praotices.In my yearsoliexperience llutington National Bank,I have at managed manypersons ordinaryskill in the art. of 4. I offer the undershndingof a personof <rdinaryski.llin the art for the issuesin eachofthe termsbelow astheyrelateto thesethreepatents. '007 Patent-Merns within eechof the pre-erdected receiving institutions...for receiving from the centrel procecsingunit a calculatcd value (a) on r ncal time brsis rnd (b) on a regular periodic setdeuneat brsiro inforuetion regrrdirg the debits rad crcdits owbg to or pryrblc by en incdtutiotr 'rith respectto crch other of the instifutions with regard to lnstruments cent and received 5. Everyparticipantbsnk's means gcce$sing CPU for send/receive net for the and position stntus ulassimply a PC utilizing software[ke PC Anywhereassociated with the operatingsystemsuchasthe SolarisOS systemand database managemnsoftwaresuchas Oracleassociated t with the ContralProcessing Unit. link between 6. A personskilled in the art would understand the communication that the CPU andthe memberPC providedfor the ability to receiveand senddata regarding cashletters. '00?-Merns for continuous monitorbg on rerl tlmo basls,rs reportod by ere.h institution by the hmrn for scnding informatrion within eachinstitution (r[i) the salding end receipt status of the lnstrumento rnd (ii) the value of the lutrumenti setrtrnd roccivrd, ls repottcd by eachof the .inrtitutiong, and (b) the stattrs in trrngit of the lnstrumcNrts with respectto their hn'ing been(l) sent and (ii) recefvc4 rs rcported by eachof fho institutions, ecrortling to the rEmrtirg of atr inrtitution's sending ard receiving of inrtrumcnts 7. Meansfor continuous monitoringis sirnl{y the oapabilityto access dataon the the CPU. The baak's PC wiih off-tho.shelfsoftwae asdiscussed aboveis coryrected to the CPU of TheNational Clearinghouse. The batrkshavethe ability to enter and confrrrncashlettersand review the s,tatus ofall activity online. This was the first clearirghouse havethis online cqpability. to 'lX)7-Means for caleulatlng deblis rlrd creditr... as mooltored on a rcal tlme basls from infomation reported by thc institutlonr 8, Basicprogranmableaccormting instnrctions(like Lotus) associafed with the CPU is usedto calculatethe dcbit andcredit positionsfor cachbank in the rctwork. This datais updatedin real time and showsthe ongoingnet debit or uedit posifion for eachbank. T'hedatashowsjintraday exposure helpsa bank . risk and manage liquidity. '007-A Clcling meanslnterrelated with the central processlngunit (a) for controlling the phyrical lransport of the linrncicl inctrumentr emong thc

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institutions and (b) for coltrolling thc mcrnr for calculatirg 9. A cyolingmeansis simply the adivities tiat must happen a 24 hour clock as on spelledout in the rules andregulationsof the clearinghouse interrlaledwith and the bank'sPC andthe curtral pmcessiq;unit. Bank operations the samething do in a ptesetroutine wery day, All eventshavea siart time anda cutofftime. Deadlines well understood the inclustry. are in '007--Mcans at eachperticiprnt for (1) sendling rnd receMng finsrciel ilstrnments to be cleared, (2)cendingand rcceiving in rcrrl time, informetion reportlng veluc and tranrit strtus of the linancial instruments to be clearedto I progrrmmable CPU, (3) Addressing CPU by which e participant may detcrmine in red time, the infometion receivedby the CPU with respectto thet participants nerl tine debit and crcdit oblfurtion with respectto othe,rirutitutiom rrriving from inrtructionc thet rc reported to be rcnt and received. 10.The aspects physicallyexohanging for financial ins&uments air or ground are bansportation.Sendingmd receivingomh lctters is a process ilat hasbeeoin placefor years. I 1. The participants would sendandreceiv"'throughelectroniccommrmication links to tbe CentralProcessing Unit, tom a PC at rhe baok. The participonts would address CPU throughthe sameelectroniccommunication the linki. 'lD7-Mcrns for recciving and rccording a ;rarticipant's reports of tle vahe and trencit rtrtus of tho inshmmcutsto be deareil as bevlng boen scDtrad rccetvedwitt reepcctto all participanh in the syrtcm 12.All a bankmustdo fo receivea rqnrt ollall iternssentandreceivedis do an inquiry on their PC. To recordtlre reports,the banksimply printed a hardcopy of the report. This is essestiallya print scrxn fimction. 13, The receivingandrecordiogfimctions occurasa naturalelrtension a PrC's of operatingsystn. Purchased of-the-sheif softwue, asdiscused abovg altowed participants'PC's to link ro the CPU. (007-Meane for monitorhg on r real time as rcported baeir

14.Meansfor monitoring in real time is simply looking at the participant,sPC monitor for updatedinfonnation. This is a practicefuniliar to operations staff andrequiresno specialsoftware. PC's as a courseof their operatingsystemwill displayfile informationaspresented.Again, punchased softwalealloweda participant'sPC to link to the Clearinghtruse centralprocessitrg so datacould unit be reviewed. (759Patenl-sMeanE tt the fr:let locf,tion for preparing one or morc crch letterc'

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15.The commonapplicationfor preparingthe cashlettersis well understood the in industryto be softwarefrom vendon suchas CPCS(CheckProcessing Control Systems)SuperMICRandlPS fltem Processing , Systems), IIPS (ImageItem Processing Systems) operating directly or indirectly with taditional sortersmade availablefrom vendorssuchasUnisys(e.g. I 800),NCR (775 7150, 778O),arrd, , IBM (e.9.,3890). This softwarefor opr:rating thesesortersis commonly available. '77 8 Patent-" Imlgcrt 16.A personof ordinaryskill in the art worrldunderstand itern captwe4 in Figure the I andthe associated components be the *imager." The imagercreates to m 'lmage" asdefinedin the patentspecification. At atoundthe time of writing the '778 Paterrt" waswell rmderstood it tlat hardwarezuchasthe sortersabovewith softwarefrom vendorssuchasIPS,[PS1 Udsys, qrd t{gp wereusedasimagers.

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