Innoviti Payments Solutions, a Bengaluru-based digital payments provider, has imposed a case against Pine Labs, over sale of payment products that infringe on Innoviti’s patent on the payments processing technology that emabled UPI payments at retail POS Terminals.
Innoviti said that it has been granted an ex-parte ad interim injunction from the Bengaluru High Court effective immediately that will prevent Pine Labs from manufacturing, selling, distributing, advertising, exporting, offering for sale, procuring and dealing with this technology through its ‘Plutus Smart’ or any other device in India.
“This transaction-specific dynamic-QR technology enables processing of payments using UPI, Bharat QR and other QR-based payment forms through the same point-of-sale POS devices that are normally used for accepting credit/debit card payments. Innoviti has already licensed this technology to several partner financial organizations and is currently in discussion with more,” Innoviti stated.
Innoviti has been granted the patent by Indian Patent Office which will hold force till 29th March 2037.
“We were shocked to know about this when one of our employees alerted us about it this month after seeing the technology being used at one of the shops in Bengaluru,” said Rajeev Agrawal, chief executive at Innoviti.
Pine Labs, Delhi-NCR based, was founded in 1998 by Vicky Bindra. The company started by engineering a solution for a large scale, card-based payment and loyalty program in the retail petroleum industry. As per merchants needs evolved, the platform pivoted its business model in a renewed journey since 2012.
While, Innoviti said that given several instances of commercial organizations in India being involved in selling and offering for sale payment products that may infringe on Innoviti’s patent, it has now begun legal enforcement of its patent rights.
Across India, Innoviti said it processes around $5 billion of payments annually from over 1000 cities. It has filed 16 patent applications in different payment technology areas.