Samsung: In Russia, Samsung is waging a legal battle over a patent infringement of the Samsung Pay service that could have serious consequences for the company. Recently, the Russian court ruled that 61 smartphones of the brand cannot be sold in the country because of the lawsuit.
The list of banned cell phones includes models that run the South Korean company’s payment system. In other words, all of the company’s main releases were affected by the decision, including the new Galaxy Z Fold 3 and Z Flip 3 foldings.
Approved in the first instance, the decision is not yet mandatory and Samsung can continue its sales currently in the country, while the process remains in progress. The company has already appealed in court to prevent the legal action from going ahead.
The South Korean giant’s payment service is reportedly infringing on patents owned by Sqwin Sa, a Swiss payment company. Despite this, Samsung has already appealed against the decision and is still not legally obligated to stop selling the devices.
This patent is mine!
Depending on developments, the coming months may affect the company’s sales, as Samsung is the second company that sells most smartphones in Russia — in the second quarter of 2021, the number represented 28.3% of the market, second only to Xiaomi (32.8%).
It all started in 2013, when Victor Gulchenko filed for a patent that, only in 2019, was officially registered by Sqwin Sa. The problem is that Samsung introduced Samsung Pay in 2015 and started offering it in Russia a year later.
Currently, Samsung Pay is one of the most used contactless payment services in the world, with 17% of all transactions. Only Apple Pay (30%) and Google Pay (32%) are ahead. Also, the legal action can also cause problems for other payment services operating in the country.