Apple sued for 'stealing' tech behind its mobile payment service
What's the story
Apple has been hit with a lawsuit by Austin-based Fintiv, which accuses the tech giant of stealing its technology to create Apple Pay. The complaint alleges that key features of Apple Pay are based on tech developed by CorFire, a company acquired by Fintiv in 2014. The technology is now used in hundreds of millions of iPhones, iPads, Apple Watches, and MacBooks globally.
Legal accusations
Allegations of theft and breach of NDAs
Fintiv's complaint alleges that Apple held several meetings with CorFire in 2011 and 2012, entering nondisclosure agreements (NDAs) to license its mobile wallet technology. However, instead of doing so, Apple allegedly used the tech and trade secrets to launch Apple Pay in the US and other countries from 2014 onward. Fintiv has also accused Apple of using Apple Pay to generate fees for credit card issuers like Bank of America, Capital One, Citigroup, JPMorgan Chase, and Wells Fargo.
Damage claims
Lawsuit seeks damages for trade secret violations
The lawsuit, filed in an Atlanta federal court, seeks compensatory and punitive damages for violations of federal and Georgia trade secrets and anti-racketeering laws. "This is a case of corporate theft and racketeering of monumental proportions," the complaint said, adding that Apple has made billions without paying Fintiv "a single penny." Marc Kasowitz, Fintiv's lawyer, described Apple's conduct as "one of the most egregious examples of corporate malfeasance" he has witnessed in his 45 years of law practice.
Legal history
Apple yet to respond to lawsuit
Apple has not yet commented on the lawsuit, and notably, this is not the first time Fintiv has sued Apple. On August 4, a federal judge in Austin dismissed Fintiv's related patent infringement lawsuit against Apple after rejecting some of its claims. Despite the dismissal, Fintiv intends to "appeal on the existing record." The case is registered as Fintiv Inc v Apple Inc in the US District Court for the Northern District of Georgia under No. 25-04413.