Contactless Smart Cards, RFID, Payment, Transit and Security

SmartMetric claims patent infringement by MasterCard, Visa

Wednesday, June 2, 2010

SmartMetric Inc. filed a complaint in United States District Court for patent infringement. The company claims that Visa’s payWave and MasterCard’s PayPass technologies infringe on a company patent.

The company claims that it was issues a patent in September 2004 for a “System for Automatic Connection to a Network” that includes the contactless payments systems that MasterCard and Visa are issuing. [end] 

On Track Innovations has received a U.S. patent for adding contactless capability to existing mobile handsets through contactless SIM technology.

U.S. Patent No. 8,090,407, aka “Contactless Smart SIM,” covers the capabilities necessary to turn existing mobile handsets into NFC-enabled devices through the use of a SIM card and a specifically designed antenna, all while keeping the phone and operating system “fully agnostic,” says OTI.

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SmartMetric announced it has leased a manufacturing plant in Buenos Aires, Argentina where it plans to manufacture fingerprint activated smart cards. These cards are being developed with industries such as banking, medical insurance and government or other high-security identification industries in mind.

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Visa Europe has announced that NFC-enabled smart phones from Samsung, LG and Research In Motion have been certified for use with Visa payWave, Visa’s mobile application for payments at the point-of-sale.

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In an effort to increase the security of the current EMV chip and PIN, SmartMetric has created an EMV card enhanced with biometrics.

The SmartMetric Chip & Biometric EMV Card incorporates fingerprints to activate the card. It’s designed to increase the security of standard EMV chip and PIN cards, which SmartMetric claims are still vulnerable to fraud attacks, even though they are safer than a magnetic stripe card.

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The U.S. government has settled an infringement case with Leighton Technologies by agreeing to license its smart cards.

Leighton Technologies, a subsidiary of General Patent, filed a case against the federal government in the U.S. Court of Federal Claims in January 2010. Leighton alleged that 54 federal agencies used its six smart card patents without authorization. Leighton’s technology was also used in e-passports.

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Based on a ruling from the United States District Court, SmartMetric plans to pursue those it says are infringing on its patents regarding EMV chip cards.

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