Google Inc(NASDAQ:GOOG) has been sued for patent infringement by Google Wallet, a smartphone application that acts as a virtual wallet and stores credit, debit card information and also facilitates payments where contactless payments are accepted.
The lawsuit has been filed by the investor of the patent Peter Sprogis.
Tech Crunch, which ran the story written by patent attorney Leonid Kravets, said that the patent was filed on Sept 19, 2005 and issued on November 20, 2007.
"There is no assignment information recorded at the U.S. Patent and Trademark Office to determine if the patent may have been bought by another entity," the report said.
According to Kravets, "Based on my initial review of the Google Wallet website, I did not find any awards being provided by the Google Wallet program. Google only states that “[y]ou may earn reward points for purchases through your card issuer’s credit or debit card rewards program (such as gas, grocery, and restaurants purchases, overall spending, and purchase protection or insurance), if applicable…. Your card issuer (not Google Wallet or The Bancorp Bank) determines and is responsible for whether rewards points or other benefits apply to these purchases.” Therefore, it will be interesting to see how the plaintiffs are interpreting the claims, in order to determine if this case has any legs."
He observed that the timing of the litigation appeared to be odd since the technology was still struggling to take hold in the United States.
"This appears to be a clear sign that patent litigation will expand into the mobile payments space as adoption of the mobile payment technology increases," he said.