Apple of discord: Texas-based Fintiv accuses Apple of stealing technology to create its own payment system
Texas-based Fintiv, which specialises in developing payment systems, has filed another lawsuit against Apple, accusing it of illegally using trade secrets and technology that Fintiv acquired from South Korean company CorFire in 2014.
Here's What We Know
According to the accusing party, it was these stolen technologies that formed the basis of the Apple Pay service, which is now used in hundreds of millions of devices around the world.
Fintiv alleges that:
- Apple negotiated with CorFire in 2011-2012 and signed non-disclosure agreements;
- instead of licensing, Apple allegedly poached CorFire employees and used their knowledge to launch Apple Pay;
- Fintiv believes Apple violated federal trade secret laws and Georgia state laws, and engaged in racketeering by charging fees to major banks and payment processors, including Visa, Mastercard, and American Express.
This is a case of corporate theft and racketeering of colossal proportions that allowed Apple to generate billions of dollars in revenue without paying Fintiv a penny.
Fintiv lawyer Marc Kasowitz called Apple's actions "one of the most egregious examples of corporate crime" in his 45-year practice.
Fintiv filed suit in federal court in Atlanta seeking damages, punitive damages and an admission of Apple's violations of the RICO (racketeering) law
The legal standoff between Fintiv and Apple has been ongoing since 2018 and also includes patent litigation previously dismissed but remanded by an appeals court.
Flashback
In 2014, Fintiv acquired South Korean firm CorFire, which specialised in mobile wallet and secure payments technology. Following the acquisition, Fintiv became the owner of all of CorFire's intellectual assets, including developments in NFC, secure elements and trusted service management platforms.
Source: Reuters
