Visa 2009 Annual Report Download - page 126

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
Intellectual Property Litigation
Vale Canjeable
On November 21, 2006, Vale Canjeable Ticketven, C.A. filed an action in the Fifth Municipal Court of Caracas ("Fifth Municipal court"), Venezuela
against Todoticket 2004, C.A., and Visa International seeking a preliminary injunction preventing use of the Visa Vale mark in Venezuela. In December
2006, the plaintiff also filed a claim with the Fourth Commercial Court of First Instance of Caracas ("First Instance court"), alleging that the defendants
infringed the plaintiff's rights as the holder of the trademark registries and requesting declarative, injunctive and monetary relief.
On November 29, 2006, the Fifth Municipal court granted a preliminary injunction prohibiting use of the "Vale" in the Venezuelan market of food
vouchers. On December 6, 2006, Visa International filed a constitutional objection to that ruling. The objection was dismissed, and Visa International
appealed the decision through the appellate courts.
On September 25, 2007, Visa International's request for removal of the First Instance judge from the case was granted. A new judge was assigned to
finalize the discovery phase of the case.
After all appeals to the lower appellate courts had been rejected, on March 14, 2008, Visa International filed an extraordinary appeal of the preliminary
injunction ruling with the Commercial Chamber of the Supreme Court. On August 6, 2008, the Supreme Court accepted Visa International's appeal and
declared the lower court's decision null and void. Pursuant to the Supreme Court's order, on March 25, 2009, the First Commercial Judge of Appeals of
Caracas issued a new decision. The decision (i) dismissed Visa International's appeal; (ii) ratified the preliminary injunction; and (iii) found Visa and
Todoticket liable for legal fees and costs in connection with the appeal. On July 9, 2009, Visa International filed a further appeal as to the March 25 decision
on preliminary relief.
Starpay and VIMachine
On May 8, 2003, Starpay and VIMachine sued Visa U.S.A. and Visa International in U.S. District Court for the Northern District of Texas, claiming
that Visa used information provided by Starpay in 2000 to create Verified by Visa ("VbV") and to file a Visa patent application on the technology underlying
VbV. Two claims are asserted: infringement of VIMachine's patent and misappropriation of Starpay's trade secrets. On February 23, 2004, Visa U.S.A. and
Visa International answered the complaint and filed a counterclaim for a declaratory judgment that Visa U.S.A. and Visa International are not infringing the
asserted patent and/or that the patent is invalid. On March 16, 2004, Starpay filed an answer to the counterclaim.
The parties reached an agreement in principle to settle the dispute in January 2008. On May 16, 2008, Visa U.S.A. and Visa International filed a Motion
to Enforce the Settlement Agreement against all parties to the agreement, including the inventor. VIMachine and the inventor filed a Motion to Compel
Further Mediation on November 7, 2008 and sought a stay in favor of arbitration on December 17, 2008.
The parties executed a revised settlement agreement (the "Revised Settlement") in June 2009, and on September 11, 2009, the court issued an order
dismissing all claims with prejudice. The settlement amount in the Revised Settlement is not considered material to the consolidated financial statements.
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