Surveillance Company Verint Fights Patent Lawsuit

New York-based surveillance and business Intelligence company Verint Systems Inc. is being sued for patent infringement in Israel.

The lawsuit sheds light on the secretive industry of intercepting cellular phone conversations. It alleges Verint used patented technology to develop its own products. Verint has previously moved to invalidate the patents discussed, but was denied by the Israeli patent registrar.

The plaintiffs, encryption experts Elad Barkan and Eli Biham, both researchers at the Technion – Israel Institute of Technology, hold a patent detailing a method for intercepting phone calls made through secure GSM networks. In 2003 the two researchers made a groundbreaking demonstration of GSM vulnerabilities. After registering their patent in the U.S. and in the European Union, they began selling encryption and decryption technology through Mr. Barkan's company KeySee Software Ltd.

Products allegedly based on Messrs. Barkan and Biham's patent make up the bulk of the profit from Verint's security division. In February, Calcalist reported that Verint is looking to sell its security division, then estimated at $500 million.

On Tuesday, Verint successfully bid to buy U.K.-based workforce optimization company EG Solutions plc for £26.3 million ($34.2 million).