Innoviti pursues Pine Labs, patent infringement charge on UPI payments

The payment technology company Innoviti sued the digital payment company Pine Labs for violating its patent on a technology allowing a unified payment interface (UPI) at point-of-sale terminals. The company said that it had brought an infringement suit against Pine Labs, based in Noida, in Bengaluru's civil court and that it had been granted an "ex parte ad interim injunction" against Pine Labs effective July 16, 2019.

This prevents Pine Labs from manufacturing, selling, distributing, exporting and using this technology via its Plutus Smart or any other device in India, according to Innoviti.

"The Pine Labs product is breaking Innoviti's technology," said Rajeev Agrawal, General Manager of Innoviti. The Bengaluru-based company is backed by leading investors including co-founder of Infosys, Catamaran Ventures, Narayana Murthy, SBI Ven Capital, Singapore and Bessemer Venture Partners, USA. "We were shocked to learn this when one of our employees alerted us about it this month after finding that the technology was being used in one of the shops in Bengaluru," he said. added Agrawal.

An email request to Pine Labs remained unanswered until it went to press. Pine Labs, which enjoys the backing of leading investors such as Sequoia, PayPal, Temasek and Sofina, had already announced that it was preparing for the next leg of its journey. It plans to integrate the latest solutions to provide a better customer experience, to break into new markets and new categories, and eventually to embark on an initial public offering (IPO) that could take place during the next few years. next two years. The company also expects the total volume of payments (POS) on its transactions to increase more than four times, from $ 23 billion to $ 100 billion.

Salman Waris, managing partner of the Delhi-based TechLegis Advocates & Solicitors law firm, said the deal was an ideal example of how Indian companies can actively enforce their intellectual property rights. on the market. "As a country, we always try to develop a culture of innovation and promote start-ups, but it is equally important for (companies) to protect their technology and intellectual property by registering them only in the same way, but also by actively enforcing their rights against others trying to exploit the same thing, "said Waris. "Normally, startups lack awareness and do not have the proper guidance and funding to prosecute offenders," added Waris.

It's worth noting that in March, Google Pay technology giant Pay's payroll, Google Pay, partnered with Pine Labs and Innoviti to allow UPI payments to cover a huge point-of-sale footprint of 200,000 shops in more than 3,500 towns and villages across the country.

Innoviti said that, given several examples of commercial organizations in India involved in the sale and sale of payment products that may infringe Innoviti's patent, it has now begun to enforce its patent rights.

The Indian Patent Institute has granted a patent to Innoviti's invention for processing payments using transaction-specific dynamic QR technology. The patents in force until March 29, 2037 have been awarded to him. This patent has been assigned to one and target system. "

This transaction-specific dynamic QR technology enables payment processing using UPI, Bharat QR and other QR-based payment forms via the same point of sale terminal as the one commonly used to accept credit or debit card payments. Innoviti has already granted this license to several financial partner organizations and is currently in discussion with others.

In everyday life, consumers typically encounter a specific implementation of this transaction-specific dynamic QR technology when they pay for their purchases in a retail store via an UPI or Bharat QR payment application on their website. mobile phone. The transaction involves scanning a dynamically generated QR code from the display screen of a normal point-of-sale terminal for credit or debit cards. Once scanned, the point-of-sale terminal automatically launches a payment authorization request on the mobile application of the user. This results in printing an UPI payment slip or generating a confirmation SMS.

Compared to the QR static payments used, the use of transaction-specific QR codes allows for a smoother interaction between the customer and the cashier. This includes improved reconciliation of payments "leading to better fraud control and more secure transaction processing," said Agrawal of Innoviti.

Unlike a single static printed QR code used in all merchant transactions, the dynamic QR is uniquely generated for each payment transaction. In addition to the identity of the merchant's merchant, it encapsulates essential additional data such as the purchase amount and a unique payment transaction identifier. This automatically ensures a one-to-one link between a single payment request and the corresponding payment receipt.

In India, Innoviti reported processing approximately $ 5 billion in payments a year from more than 1,000 cities. He filed 16 patent applications in different payment technology areas.