Starbucks, Major FIs Served mPayments Patent Infringement Suit

What's Next In Payments®
12:15 PM EST January 12th, 2012

Starbucks, Expedia, Capital One and Bank of the West are being sued by Maxim Integrated Products Inc. in connection with several alleged patent infringements, according to Mobile Commerce Daily.

(Exclusive Interview: Starbucks Exec on Why Mobile Payments Must Start with the Consumer)

The lawsuits, which specifically name four patents, primarily focus on the companies’ mobile payments apps. Maxim creates highly integrated analog and mixed-signal semiconductors that allow designers to free board space for features in smartphones, tablets and other mobile devices.

“Maxim is probably looking to work out some kind of deal with the companies it sued, the lawsuits were filed to increase the pressure on companies to come to a resolution,” said Jason Koslofsky, an attorney with ArentFox LLP.  

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Starbucks mobile transactions exceeded 26 million in the first year of the program. During 2011, Starbucks expanded its mobile payment program to give customers access to the fastest way to pay at more than 9,000 U.S. locations, introduced the Starbucks for Android™ app, rolled out the Starbucks Card eGift feature, started international expansion and developed the Starbucks Cup Magic app to share augmented reality experiences in its stores and beyond.  

“2011 was a year of great mobile exploration and expansion for Starbucks and an opportunity to give our customers a new way to connect with Starbucks through a variety of mobile experiences,” said Adam Brotman, svp and gm Starbucks Digital Ventures. “The customer response to our mobile apps has been phenomenal. Not only are they using their phone as a wallet, but as a connection point to Starbucks as they manage their Starbucks Card accounts, send eGifts and get into the holiday spirit with the Starbucks Cup Magic app.”

Related Story: At Expedia, the World’s Largest Travel Agency, mCommerce is Taking Flight

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