In the suit, LML alleges that the defendants infringe U.S. Patent No. RE40220. LML is seeking damages, injunctive and other relief for the alleged infringement of these patents.

"The filing of this lawsuit is consistent with our strategic objective to protect our intellectual property,'' said Patrick H. Gaines, chief executive officer and president of LML Patent Corp. and LML Payment Systems Inc. ``We have awarded several licenses to industry participants in the past and what we will not allow is these defendants to use our intellectual property without a proper license.''

LML is represented by the law firms McKool Smith LLP, Gillam & Smith, L.L.P. and Ward & Olivo.

About LML Payment Systems Inc. (http://www.lmlpayment.com )

LML Payment Systems Inc., through its subsidiaries Beanstream Internet Commerce Inc. in Canada and LML Payment Systems Corp. in the U.S., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement. Our intellectual property estate, owned by subsidiary LML Patent Corp., includes U.S. Patent No. RE40220, No. 6,354,491, No. 6,283,366, No. 6,164,528, and No. 5,484,988 all of which relate to electronic check processing methods and systems.

Source: Company press release.