Samsung Pay case: Court of Appeal allows sale of Samsung gadgets

Samsung Pay case: Court of Appeal allows sale of Samsung gadgets

Samsung Pay case: Court of Appeal allows sale of Samsung gadgets
The court of appeal, which considered the earlier arbitration decision on a patent dispute between the Swiss company Sqwin SA against the Russian subsidiary of Samsung, sided with the latter.  This means that the earlier decision to ban sales of smartphone models equipped with Samsung Pay functionality in Russia has now been cancelled.  We should remind our readers that we are talking about 61 phone models.

Sqwin SA was the patent holder of the payment system used in smartphones.  The company itself originally registered the invention in Germany (in 2012).

In the Russian Federation, the patent was registered in April 2019.  However, the start date for the patent was December 2, 2013, the date the application was filed.  In the phones of the South Korean company Samsung, the corresponding service appeared in 2015, and already in 2016 it became available in Russia.
The Swiss applied to arbitration, demanding a ban on the operation of the payment service in the Russian Federation.
The court initially granted the firm's claim by forbidding the sale of the relevant products.  The interests of the Swiss firm were represented in court by the Moscow division of Hogan Lovells.

 In the fall of 2021, the court issued an additional decision establishing a ban on a specific list of smartphones equipped with the ability to make contactless payments.  It included 61 gadget models that have entered the market since 2017.  The list includes, in particular, the Z Flip and Z Fold models.  Representatives of Samsung decided to challenge this decision, demanding to cancel the patent previously registered by the Swiss.  A similar appeal to the court was received from the "Yandex" company and the operator of the “Mir" (NSPK) payment system.
 In January 2022, the court of appeal annulled the ban on importing smartphones of the above mentioned models into Russia, as Squin SA insisted (case No. A40-29590/20).
Thus, the provisional measures in the dispute were cancelled.  And in March 2022, the cancellation also affected the main decision of the primary court.

We should recall that until recently, the contactless payment system Samsung Pay was in third place, second only to Google Pay and Apple Pay in popularity.  According to data for 2021, the share of the service in the mobile payment market reached 17%.  Now the service is also available for serving Russians using Mir cards.  At the same time, Samsung warned that transactions on other cards may not be available due to sanctions imposed on the credit organizations by the international financial institutions.

18.03.2022