Apple Pay Allegedly In Violation Of Patents
A US technology company has sued Apple, alleging the company’s digital wallet has violated its patents for financial transaction authentication.
The New York Times reported Universal Secure Registry, a small company based in the city of Boston, has claimed Apple Pay is in violation of patents received by its chief executive Kenneth P Weiss, who is best known as the inventor of RSA SecurID two-factor authentication technology.
Weiss holds 13 patents for financial transaction authentication systems involving smartphones, biometric identification and one-time tokens.
Apple and Visa are both the subject of the lawsuit against Apple Pay. According to Weiss, Visa was given access to his patented technology in 2010 after signing a ten-year nondisclosure agreement, which saw Visa engineers given full access, before the company ceased communicating with him.
Weiss also claimed he approached Apple around the same time, but did not receive any response.
Apple Pay was launched by Apple in September 2014 in partnership with Visa, as well as MasterCard and American Express. According to Juniper Research, Apple Pay will have 86 million users by the end of 2017, compared to 34 million for Samsung Pay and 24 million for Android Pay.
Apple is currently involved in multiple lawsuits in regards to royalties it pays for patents. The company sued Qualcomm for $1 billion in January.
Weiss told The New York Times that he hoped he could reach an agreement with Apple and Visa, and that he wanted to “get into a conference room with them and resolve this”.