PORTLAND, Ore (CN) - The major vendor of ID validation systems for the Pentagon bought out its chief rival to monopolize the business, a third company claims in a federal antitrust complaint. EID Passport sued Intellicheck Mobilisa, which bought its former competitor, Positive Access Corporation, in August.
EID Passport and Intellicheck both sell scanners used by the military to check the validity of U.S. drivers' licenses, which visitors must show to enter U.S. military bases all over the world.
EID says it is a newcomer, while Intellicheck historically controlled about 90 percent of the market for both the hardware and software used for electronic ID validation.
EID says market competition depends on a system's ability to recognize drivers' licenses issued by all 50 states, including Georgia licenses, which contain special encryption called the "Georgia dongle."
EID says it used to buy recognition software from a company called Positive Access Corporation. But when Intellicheck bought Positive Access in August, Intellicheck gained 100 percent of the market share, since EID had lost its key supplier.
EID says Intellicheck sent a 90-day termination notice ending EID's agreement with Positive Access one day after it announced the acquisition.
EID wants damages and a declaration that Intellicheck's actions are illegal attempts to maintain a monopoly.
EID is represented by Stephen English with Bullivant Houser Bailey.
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