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LevelUp Prevails Against Another Frivolous Patent Infringement Claim

BOSTON, MA--(Marketwired - July 11, 2014) - LevelUp, the nation's largest mobile payment network, announces today that a United States District Judge in Massachusetts has entered judgment in favor of LevelUp on a complaint for patent infringement filed against the company by Jack Barron, a Massachusetts resident. In a July 7, 2014 ruling, Judge Timothy Hillman explained that LevelUp does not infringe any claim of the patent asserted by Mr. Barron, which is directed to messaging over a financial network. LevelUp, which respects the legitimate intellectual property rights of all persons, has maintained from the outset that Mr. Barron's claims were frivolous and extortionate.  LevelUp was pleased and vindicated by the court's early ruling, which was entered prior to the commencement of any discovery in the case. LevelUp will now seek to recover from Mr. Barron the costs and attorney fees LevelUp incurred unfairly in order to defend the frivolous allegations. The action was filed in the United States Court for the District of Massachusetts, and is captioned Barron v. SCVNGR, Inc. d/b/a LevelUp, Case No. 13-cv-40084-TSH.

This case marks the second time in six months that LevelUp has prevailed against a baseless assertion of patent infringement. In January, an individual that had sued LevelUp in California agreed to withdraw his claims without any payment by LevelUp.

LevelUp supports the ongoing national discussion and efforts to ensure that the United States patent system serves its goal of protecting inventors and innovative companies, without becoming a weapon for abuse through baseless claims of patent infringement and costly litigation. The costs to defend baseless allegations of patent infringement, or against patents of dubious validity, are enormous. Many companies simply cannot afford to defend themselves against baseless infringement claims. Even companies that can defend themselves often choose to "settle" or offer a large, but still smaller than the cost of litigation, payment to make the case go away. While LevelUp respects the rights of all valid patent holders and strongly believes in the importance of a responsibly-used patent system, baseless litigation is a dangerous and expensive trend that harms innovation and the national economy.

In November 2013, LevelUp was proud to host the Attorney General of Massachusetts, Martha Coakley, at LevelUp's downtown Boston headquarters to discuss ways that technology companies can combat the ever-present threat of baseless patent litigation, including through state laws prohibiting "unfair and deceptive" trade practices. Attorney General Coakley shared her views on the importance of the issues at stake and ideas of how her office could lend a hand to supporting the Innovation Economy in Massachusetts. Massachusetts is already home to a bustling cluster of payments, biotech, software and other technology related companies and the Attorney General's work will only serve to further cement Massachusetts position as a leader in innovation.

About LevelUp

LevelUp is a revolutionary new way to pay. Users pay with their phone, saving time and money. Businesses pay lower payment processing fees and reinvest those savings into growing their businesses by attracting new customers and bringing them back. LevelUp is a part of SCVNGR, which is backed by Google Ventures, Balderton Capital, Continental Investors, Highland Capital, Transmedia Capital and T-Venture, the venture arm of Deutsche-Telekom.

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