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Apple Sued by Universal Secure Registry for Patent Infringement regarding Apple Pay

17 Patently Legal News


The New York Times is reporting that Apple is being sued over Apple Pay. "The lawsuit, filed by Universal Secure Registry in Federal District Court in Delaware, says that its chief executive, Kenneth P. Weiss, received 13 patents for authentication systems that use a smartphone, biometric identification such as a fingerprint and the generation of secure one-time tokens to conduct financial transactions.


In the suit and in an interview, Mr. Weiss said he had extensive meetings in 2010 with Visa officials, including its chief executive at the time, to discuss working together on the technology. In the interview, he said that Visa had signed a 10-year nondisclosure agreement to gain access to the technology, assigned engineers to fully understand the details, but then dropped further communication without securing a license.


Mr. Weiss said he also wrote to Apple at the same time seeking to license his technology, but the iPhone maker never responded to his inquiries.


Three years later, Visa began work on the Apple Pay technology with Apple, MasterCard and American Express. Apple released Apple Pay to iPhone users in 2014.


The patent specialists Quinn Emanuel Urquhart & Sullivan which filed the Apple Pay suit on behalf of Universal Secure Registry, represented Samsung Electronics in some of its long-running patent litigation with Apple over software in its Android-based smartphones.


Mr. Weiss said that his company has tried to license its technology to larger firms without success and is now building its own device for secure wireless authentication." For more on this report, read the full New York Times report here.


The New York Times downplayed Apple Pay by saying that "it has not gained much traction with consumers or merchants." If Apple Pay is unsuccessful with consumers and merchants, then we can be assured that Mr. Weiss is dreaming that consumers would ever have any interest in his own standalone device for secure authentication.


Update May 24, 2017 4:48 p.m. PST: We regretfully made an error in our original report. We have now revised the report to correct our byline and original paragraph errors. RSA is not suing Apple, Universal Secure Registry is suing Apple. Because of the history of Mr. Weiss with Security Dynamics and RSA, we jumped the gun. Someone from RSA contacted us today to inform us of the error and we promptly corrected the report.


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