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News

RAPID-RCx Producer Claims DefenseID advertisingtest as Misleading

EID Passport : 01 March, 2010  (Company News)
EID Passport files lawsuit against Intellicheck Mobilisa for misleading US advertisements aimed at the defence market
Eid Passport has expanded its federal lawsuit against Intellicheck Mobilisa to allege unlawful false and misleading advertising in the US military market.


According to Eid Passport's amended complaint, Intellicheck Mobilisa has made and is making false and misleading statements in its advertising and promotion of its DefenseID system, and has deceived the military into buying its product. Intellicheck Mobilisa's activities violate the federal Lanham Act, which protects companies from false and misleading advertising by competitors, according to the suit.

Intellicheck Mobilisa sells its DefenseID system to the Army, Navy, Marine Corps and Air Force as a security solution to electronically validate state-issued driver licenses of visitors who present such identification for entry at access control points at secure military installations and facilities in the US Eid Passport sells a competing system, the RAPID-RCx Program.

The suit as amended alleges that Intellicheck Mobilisa falsely advertises that its system scans IDs and compares the information to more than 100 databases, and then can immediately determine if the ID is fake, determine if the ID is reported lost or stolen, and determine if the individual has outstanding wants and warrants, all in under one second.

Fort Dix Army Base in New Jersey, which undertook to strengthen its perimeter security in the wake of a reported terrorist plot in 2007, is among those misled by Intellicheck Mobilisa's false and misleading advertising and promotional activities, according to the suit as amended.

"Intellicheck Mobilisa's DefenseID system is not as advertised," said Steve Larson, CEO of Eid Passport. "We all know that corporate credibility issues are extremely important today, especially when it comes to the security of our military installations. Eid Passport believes strongly in robust and fair competition. But a competitor crosses the line when it makes outright false and misleading statements -- especially to the military -- in its advertising and promotion about its security solution. We therefore have amended our complaint to allege that Intellicheck Mobilisa has violated the federal false advertising statute and in so doing has caused our company competitive harm."

Eid Passport filed its lawsuit in US District Court in Portland, Oregon on November 30, 2009. The original complaint focused on allegations of antitrust violations. The amended complaint, in addition to adding the false advertising claim, significantly expands the antitrust allegations.

Eid Passport's lawsuit does not involve or affect its separate RAPIDGate Program, a vendor identity authentication and physical access control solution adopted widely at US Army, Navy, Marine Corps, Coast Guard, Department of Homeland Security, and NASA installations and facilities.

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