PORT TOWNSEND — Calling a lawsuit against his company “frivolous and without merit,” Intellicheck Mobilisa Inc. CEO Nelson Ludlow said Wednesday that he intended to “vigorously defend his company’s actions” against competitor Eid Passport Inc., which filed an antitrust lawsuit against the company in U.S. District Court on Monday.
“Legal and sound business decisions, as well as a commitment to innovation, have resulted in the development of our superior driver-license reading software,” said Ludlow of his Port Townsend-based company.
“That innovation has also resulted in several patents that cover our driver-license validation and verification technologies.
“These patents provide some exclusive rights under federal intellectual property laws, which we will always uphold and defend. “
The suit accuses Intellicheck Mobilisa of anticompetitive and predatory conduct.
Even playing field
The CEO of Portland-based Eid Passport said the purpose of the lawsuit was to level the playing field after Intellicheck Mobilisa acquired software company Positive Access Corp. on Sept. 1 and canceled the licensing contract Eid Passport held with Positive Access.
Eid Passport’s lawsuit alleges that Intellicheck Mobilisa engaged in unlawful activities by acquiring the specialized software company for the driver-license validation market with the purpose of cutting off Eid Passport’s access to the software required to create devices for driver-license validation for U.S. military installations — a business both companies are involved in.
Ludlow said the last thing on his mind during the acquisition of Positive Access was Eid Passport.
“Buying the company had nothing to do with [Eid Passport],” Ludlow said.
“It was a good business deal, and there is nothing illegal about good business deals.
“But I suppose anybody with a lawyer and a laptop can file a lawsuit.”
Eid Passport CEO Steve Larson said that once his company’s contract was canceled by Intellicheck Mobilisa, the firm began looking at legal proceedings.
“We must be allowed to fairly compete in this very important marketplace,” Larson said.
“We had been using Positive Access for some time, and we were more than willing to license with Mobilisa.
“When they canceled on us, that’s pretty much how this all got started.”
Meanwhile, Ludlow said his company would continue operating as it did before the lawsuit was filed.
“Around here, it’s business as usual,” he said.
“We obviously disagree with their view and we stand behind our business practices.”
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Reporter Erik Hidle can be reached at 360-385-2335 or at erik.hidle@peninsuladailynews.com.
