In a David and Goliath style battle, software company Identitii Limited has recorded a win in its ongoing patent fight against one of the world's top five banks.
The Australian company developed a new method for financial institutions to securely process transactions using blockchain and tokenisation technology and successfully received approval for the US-registered patent, dubbed the '413.
When JP Morgan Chase got wind of the new technology, instead of licensing the patent, the trillion dollar company decided to develop its own computing system and filed a request with the United States Patent and Trademark Office (USPTO) to invalidate Idenitii's registered patent.
The USPTO rejected JP Morgan's challenges to the validity of the patent, finding that "the information presented fails to show a reasonable likelihood that JPMC would prevail in establishing the unpatentability" of Identitii's '413 patent.
Identitii's Chief executive John Rayment said the ruling is a significant step forward in protecting its intellectual property.
"We believe the company has a strong claim for patent infringement backed by an extensive catalogue of evidence," he said in a statement.
AAP contacted JP Morgan Chase for comment but did not receive a response.
The Australian company has a case in front of the United States District Court for the District of Delaware concerning JP Morgan's infringement of a different patent, with a motion currently in place to dismiss it.
Late Tuesday afternoon, shares in the small market cap company were up 77.8 per cent to 1.6 cents.
