DOW JONES NEWSWIRES

Western Union Co. (WU) said a federal jury in Texas awarded it $16.5 million in damages from MoneyGram International Inc. (MGI) for patent infringement.

The suit was filed in May 2007 and alleged MoneyGram infringed the patent of its money-transfer rival for the system of staging transfers.

A MoneyGram spokeswoman wasn't immediately available for comment.

The much-larger Western Union reported weaker results in the latest quarter, though transaction volume continued to increase. MoneyGram swung to the red on legal costs and loss provisions, but it too saw higher transactions.

Western Union and MoneyGram shares closed at $19.40 and $2.90, respectively, and were inactive premarket.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com