It seems Mitek has settled its litigation was item processing software developer BSM. Unfortunately, we’re not sure of the outcome of this litigation. If you know, please fill us in. Regardless, its settlement has enabled Mitek to receive its final $1 million payment from John Harland for last summer’s acquisiton of Mitek’s check and document image capture product lines.
Mitek has since refocused itself on developing fraud prevention technology utilizing its character recognition tools. Harland has also made an equity investment in Mitek and is working with them in this area.
Here’s a brief summary of the litigation which appeared in Mitek’s annual report:
[Mitek] is currently in litigation with BSM regarding a certain license agreement pursuant to which we licensed certain of BSM’s technology. BSM has claimed over $400,000 in unpaid royalties and [Mitek] has counterclaimed for over $1,000,000 with respect to interference with business relations, breach of confidentiality and unfair competition. At this time, the matter is in binding arbitration and we cannot make a reasonable determination regarding the outcome of this matter.
Apparently Harland wanted to make sure the applications were getting were free and clear of royalty concerns.