The Royal Bank of Scotland (RBS) has reached a settlement allowing it to carry on using trade finance software from provider Complex Systems to process letters of credit (L/Cs) and guarantees.

Earlier this year a US judge banned RBS from using the software in a dispute over copyright infringement.

Court order

In May, the bank was ordered by a US court to stop using the BankTrade software for new trade finance transactions within 60 days and completely within a year.

But now RBS has reached a settlement with Complex Systems that enables the bank to continue using the software.

Legal wrangle

The settlement ends a dispute that began six years ago in 2007 when RBS acquired ABN Amro.

The Dutch bank's US subsidiary, LaSalle, was licensed by Complex Systems to use its BankTrade trade software.

Continued use

But ABN Amro sold LaSalle to Bank of America in a bid to fend off the RBS takeover.

RBS subsequently failed to transfer the BankTrade license but continued to use the software.

As well as L/Cs and guarantees, the software is used for processing loans and funds transfers.

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