Eid Passport, Inc. yesterday filed suit against Intellicheck Mobilisa,
Inc. (NYSE Amex: IDN), alleging anticompetitive and predatory conduct in
the U.S. military market in violation of federal and state antitrust
The federal court lawsuit accuses Intellicheck Mobilisa of attempting to
unlawfully monopolize the market for electronically validating
state-issued driver licenses of visitors who present such identification
for entry at access control points at secure military installations and
facilities in the U.S.
According to Eid Passport’s complaint, Intellicheck Mobilisa’s unlawful
activities included its purchase of its leading competitor for
specialized software for the driver license validation market – and a
key supplier of Eid Passport – with a purpose of cutting off Eid
Passport’s access to the software. Intellicheck Mobilisa notified Eid
Passport it was canceling the software company’s license agreement with
Eid Passport a mere one day after publicly announcing its acquisition of
the software company, Positive Access Corporation, on September 1, 2009.
The suit, filed in U.S. District Court in Portland, Oregon, also alleges
that Intellicheck Mobilisa acquired Positive Access with a purpose of
silencing Positive Access from asserting its claims of prior art over
Intellicheck Mobilisa’s patents.
“In this era of heightened security requirements at U.S. military
facilities, we believe it is unconscionable for a company to try to
squeeze legitimate competitors like Eid Passport out of a market that is
intended to protect our armed forces, their families, and the
hard-working men and women who work on their bases. That is why we felt
we had no choice but to file this antitrust lawsuit against Intellicheck
Mobilisa,” explained company CEO Steve Larson. “We must be allowed to
fairly compete in this very important marketplace.”
The action involves Eid Passport’s RAPID-RCx° Program,
a recent entrant to the driver license validation market at U.S.
military installations, and an older product that Intellicheck Mobilisa
has sold to the U.S. military.
The lawsuit does not involve or affect Eid Passport’s separate RAPIDGate°
Program, a vendor identity authentication and physical access control
solution adopted widely at U.S. Army, Navy, Marine Corps, Coast Guard,
Department of Homeland Security, and NASA installations and facilities.
Intellicheck Mobilisa is headquartered in Port Townsend, Washington.
About Eid Passport
Eid Passport, Inc. (www.eidpassport.com)
integrates leading-edge products and services into solutions that
combine identity authentication, background screening and access
management. Eid Passport’s products and services make facilities,
assets, and people safer and more secure. By using Eid Passport’s RAPIDGate
Biometric Enterprise Access Control Solution, highly secure facilities —
such as military installations, government buildings, federal agencies,
manufacturing and distribution sites, ports and commercial buildings —
can increase security and streamline access for a variety of authorized
RAPIDGate, RAPID-RCx and Eid Passport are registered
trademarks of Eid Passport, Inc.
Source: Business Wire