The Delhi High Court has reportedly appointed former Supreme Court (SC) Judge AK Sikri as a mediator to resolve the ongoing patent infringement case between National Payments Corporation of India (NPCI) and On4Off Trading.
“Plaintiff (On4Off) says he is willing to take the possibility of pre-instituted mediation … it is deemed appropriate that parties are referred to mediation,” a single judge bench of Justice Amit Bansal said as per Economic Times.
The matter reportedly pertains to On4Off Trading’s plea that seeks to bar NPCI, third-party application providers (TPAPs) such as Google Pay, AmazonPay, SamsungWallet, PhonePe as well as banking institutions like Punjab National Bank, Canara Bank, ICICI Bank and others from infringing on its patent process.
On4Off Trading has also sought compensatory damages for “illegal use or facilitation” of its patented process.
The petitioner claims that the payments body and others were “gaining illegal benefits through the unauthorised use” of its patented technology process for aggregating Unified Payments Interface (UPI) payments using credit cards.
NPCI, via RuPay Credit Card on UPI, enables users to link their RuPay credit cards to UPI accounts to make transactions.
The petitioner has claimed that one of its directors and his two children filed an application for patenting the process for making a monetary transaction from a credit card after scanning a UPI code in January 2022.
On4Off Trading also contended that shortly afterwards in October 2022, the Reserve Bank of India (RBI) issued a circular allowing UPI transactions using RuPay credit cards after scanning a UPI QR Code. Arguing for the petitioner, counsel Ashutosh Ranjan stated that the circular allowed transaction to be facilitated using “only” RuPay credit cards after scanning a UPI code.
On4Off Trading also claimed that allowing the linkage of only RuPay credit cards with UPI impacted the “market of the other card manufacturers” and distorted the market adversely.
“As per the data published also available on the website of NPCI in October 2023 total transaction(s) of INR 100 Cr have been facilitated through RuPay Credit Cards on UPI QR Code and during the weekends the figure reached up to INR 150-200 Cr,” read the petition.
Arguing for On4Off Trading, senior counsel CM Lall told the HC that the nodal payments body was using its patented process without any license or permission.
“By facilitating transactions through RuPay Credit Cards with UPI QR Codes, NPCI has internalised the entire process developed by the inventor, in as much as both the RuPay and the UPI are the products of NPCI,” added the plea.
The HC has posted the matter for next hearing on March 11.
The post UPI-Linked Credit Card Patent Infringement: HC Refers Matter To Mediation appeared first on Inc42 Media.