Azernews.Az

By Alimat Aliyeva

Apple is facing a lawsuit from a Texas-based company, Fintiv, which alleges that the tech giant stole its technology to develop the lucrative mobile payment service Apple Pay, Azernews reports, citing foreign media.

In a complaint filed publicly on Thursday, Fintiv claims that the core features of Apple Pay are based on technology developed by CorFire, which Fintiv acquired in 2014. The technology is now embedded in hundreds of millions of Apple devices, including iPhones, iPads, Apple Watches, and MacBooks.

According to Fintiv, Apple entered into multiple meetings and signed nondisclosure agreements with CorFire between 2011 and 2012, with the intention of licensing CorFire's mobile wallet technology to meet the rising demand for contactless payments. However, instead of following through with licensing, Fintiv alleges that Apple, with the help of former CorFire employees it allegedly poached, misappropriated the technology and trade secrets to launch Apple Pay in 2014. This service has since become a cornerstone of Apple’s mobile payments ecosystem, available in the U.S. and many other countries.

The lawsuit also claims that Apple has engaged in what Fintiv describes as an informal racketeering operation by generating fees through Apple Pay for major credit card issuers like Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and Capital One, as well as payment networks including Visa, Mastercard, and American Express.

In a statement, Fintiv’s lawyer, Marc Kasowitz, called Apple’s actions “one of the most egregious examples of corporate malfeasance” he has witnessed in his 45 years of legal practice, accusing the company of generating billions in revenue while depriving Fintiv of a dime. The lawsuit seeks both compensatory and punitive damages for violations of federal and Georgia trade secrets law, along with anti-racketeering laws, including the RICO statute.

Fintiv also previously filed a patent infringement lawsuit against Apple, which a federal judge in Austin dismissed on August 4, just days after rejecting some of Fintiv’s claims. Fintiv has agreed to the dismissal but plans to appeal based on the existing record, court documents reveal.

While Apple has not yet responded to the lawsuit, this legal battle underscores the ongoing tensions in the tech industry surrounding intellectual property and the protection of trade secrets. Apple Pay’s widespread adoption makes this case particularly significant, as it could have far-reaching implications for both the payment industry and future technology licensing disputes.