Cybersettle Wins Patent Infringement Suit Filed Against NAF
Cybersettle, Inc. announced in November that it won an important patent infringement lawsuit against the National Arbitration Forum (NAF) based in Minnesota. Cybersettle charged that two versions of NAF’s online dispute resolution system were in direct violation of Cybersettle’s patented process.
“This is an extremely important victory!” said Cybersettle President and CEO Charles Brofman. “Cybersettle spent a large amount of money, and time developing processes and creating methodologies, and we are very gratified that the Federal District Court did enforce and protect this patent and made sure that infringers just can’t come along and swipe years of work and put products out as if they were their own invention. The system really worked,” he stated.
The online dispute resolution business has proven to be fiercely competitive. With America’s courtrooms buried in lawsuit cases, big corporations understaffed, and claimants frustrated over excessive amounts of paperwork and months of dragged-out negotiations, is it any wonder?
Online companies offering fully automated cyber-negotiation such as clickNsettle.com owned by National Arbitration and Mediation (NAM) and Settlementonline (which focuses on insurance claims) continue to build up their clientele, but it appears that Cybersettle, the industry’s pioneer, has been in the forefront recently.
To date, according to statistics from Cybersettle, the company has handled over 160,000 online transactions and has facilitated over $1 billion in settlements.
Cybersettle was granted U.S. patent #6,330,551 for its automated online dispute resolution system back in December 2001, and now the company can boast the formation of an influential partnership with the American Arbitration Association (AAA).
This formidable alliance was established in September 2006, and allows Cybersettle users to switch from online dispute resolution to the more traditional methods of arbitration through AAA’s vast network of arbitral institutions around the country.
Cybersettle, co-founded by former trial attorneys Brofman and James Burchetta, was incorporated in 1996 after Brofman and Burchetta found themselves on opposite sides of the aisle in a civil case. During the trial, each party agreed to write down a settlement amount on a piece of paper, and if the amounts were within $5000 from each other, they would settle for a figure half way between.
The idea was successful in that case, and so the two attorneys partnered up and created an online business based on this concept. It is the simplest ideas that are oftentimes the most successful, and Cybersettle is proof of that.