UPDATED 10:25 EST / MAY 30 2011

Android Sparks Legal Battles over Mobile Payments, Samsung Devices

In an effort to revolutionize the way people shop, Google finally unveiled its mobile wallet service in order to wrap around its NFC technology and infrastructure. New York and San Francisco are the testing points, allowing NFC-enabled phones to conveniently tap their units on a payment terminal to pay for goods. Google supports Mastercard credit cards issued by Citi, enabling user to use the service in 120,000 US shops. Clearly, mobile wallet aims at replacing physical credit cards.

It has also partnered with Sprint, a distributor of Google’s Nexus S phone, the only phone that supports Google Wallet in the US. More mobile units is expected support NFC technology. NFC supported by many companies including Microsoft, Nokia, Visa and AT&T.

“We’re extending an open invitation to merchants and ecosystem partners like payment networks, carriers and banks to join us in creating tomorrow’s best shopping experience,” said Stephanie Tilenius, vice president of commerce for Google.

Obviously, Google’s happy with this recent move, but Paypal isn’t. It accused Google and two of its employees, Stephanie Tilenius and Osama Bedier of theft of trade secrets. They are both former executive at Paypal.
Google’s not the only company to offer NFC technology. RIM does too. However, the two giant’s approach are different and here is Anton Wahlman’s discussion of why, as well as his take on the importance of smartphone-based phone payment technology.  Google is not the first to develop a mobile payment service. Visa already announced its plans ahead of Google Wallet, but the official launch is scheduled on fall, so have AT&T, T-Mobile and Verizon in a service called Isis. There are speculations that retail powerhouse Amazon might join the NFC party.

While NFC and mobile payment is getting hot (in a good way), here is Apple and Samsung bickering over patent and trademark infringements. Apple first accused Samsung of “slavishly” copying its iPhone and iPad designs, and is demanding the latter to show some of its upcoming products which include two tablets and three phones. Samsung countered by suing Apple in Seoul, Tokyo, and Mannheim, Germany for violations of technical patents that Samsung holds in those countries. Also, Samsung demands to see Apple’s next generation iPhone and iPad if it were to show its future product. Apple is known for being highly secretive and Samsung’s demand is undeniably too painful for them.

Aside from Samsung, Apple also filed another lawsuit recently. This time, it’s towards a teenager been accused of selling white iPhone 4 conversion kits, as Apple “claimed in its lawsuit that Lam had infringed and weakened its trademarks, and had engaged in “deceptive practices.” The teenage boy, Fei Lam, is from Queens, New York. He has profited a total of $130,000 from selling the conversion kits for $279 a piece. Apple ordered him to “give up all the profits he made, reimburse Apple for its legal costs, and payback Apple with any other financial matters concerning this case.”


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