PayPal taken to court over mobile card reader
Money transfer service PayPal has been accused of patent infringement by Texas-based company MobilePay.
MobilePay filed its claim on Friday, September 28, at the US District Court for the Western District of Texas.
According to the claim, PayPal’s mobile card reader infringes MobilePay’s “Electronic device input/output system and method” patent (US number 9,800,706).
MobilePay said PayPal’s mobile card reader couples a credit card reader to a mobile device.
“Defendant sells, offers to sell, and/or uses the PayPal mobile card reader, and any similar products, which infringe at least claim 1 of the ‘706 patent,” alleged MobilePay.
“The PayPal mobile card reader is designed to connect to, and work with, a mobile device.”
Claim 1 of the ‘706 patent recites a system for coupling a credit card reader to a mobile device.
MobilePay alleged that PayPal’s mobile card reader infringes the hardware components that are protected by the company’s patent.
According to the claim, PayPal’s actions have damaged MobilePay’s business.
Based on the alleged infringement, MobilePay is requesting that the court grant the company damages and any further relief that it thinks is appropriate.
This isn’t the first time that PayPal has been involved in IP litigation.
In May 2017, the company accused streaming service Pandora Media of deliberately modelling its new logo on PayPal’s ‘P’ trademark. According to PayPal, there were “striking” similarities between its trademark and Pandora’s new mark.
In November 2017 the companies filed a stipulation of dismissal, revealing that they had signed a settlement agreement.
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