Lawsuit Alleges Apple Pay a Trillion-Dollar ‘Fence' for Stolen Wallet IP

Core Viewpoint - Fintiv has filed a federal lawsuit against Apple, accusing the company of racketeering and theft of trade secrets related to the technology behind Apple Pay [1][2]. Group 1: Allegations Against Apple - Fintiv claims that Apple posed as a potential partner a decade ago to gain access to CorFire's mobile-wallet platform, leading to the alleged theft of proprietary technology [2]. - The lawsuit asserts that Apple's secure-element design, NFC implementation, and trusted-service-management layer are nearly identical to Fintiv's proprietary architecture, which has contributed to Apple Pay's significant revenue generation [3]. - The complaint invokes both federal and Georgia RICO statutes, alleging that Apple formed an enterprise with banks and card networks to process trillions of dollars in transactions, thereby monetizing Fintiv's trade secrets [4]. Group 2: Broader Context of Allegations - The complaint suggests that Apple's actions are part of a broader pattern of behavior, citing similar disputes with HealthTech firms Masimo and Valencell, indicating a strategy of "partner, poach and profit" [5]. - Specific examples include allegations that Apple attempted to steal trade secrets from Masimo related to blood oxygen monitoring technology and from Valencell regarding heart-monitoring technology, rather than genuinely seeking partnerships [6]. Group 3: Market Reaction and Legal Context - Apple has not publicly responded to the lawsuit, and while the company's shares saw a slight increase of 0.4%, industry insiders believe the suit may lead to renewed scrutiny of Apple Pay's impact on card issuers and networks [7]. - This lawsuit is not the first filed by Fintiv against Apple; a related patent infringement suit was recently dismissed in a Texas court [7].