MoneyGram International Inc. (MGI) said it won a reversal of a
patent-infringement decision against it, which larger rival Western
Union Co. (WU) had filed over a system of staging money
transfers.
MoneyGram shares were up 2.7% at $2.68 after hours, while
Western Union's were down four pennies at $18.30.
The company said that "based on the grounds of obviousness," the
U.S. Court of Appeals for the federal circuit ruled certain patents
invalid, related to letting customers send transactions without the
use of written send forms.
A representative for Western Union said the company was
disappointed in the court's decision and is reviewing its
options.
Last year, a federal jury in Texas awarded Western Union $16.5
million in damages from MoneyGram International Inc. (MGI) in the
case.
In its most recent quarterly results, both MoneyGram and Western
Union reported higher transaction volume after weak levels in the
year-earlier period, though Western Union's revenue rose where
MoneyGram's fell.
--By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com