Samsung Electronics and its U.S. subsidiary are facing a federal lawsuit in Texas for allegedly infringing on multiple patents tied to mobile payment technologies used in Samsung Pay.
Lawsuit Filed in Patent-Heavy Texas Court
The complaint was filed by PayGeo, a Texas-based fintech company, on April 2, 2025, in the U.S. District Court for the Eastern District of Texas, Marshall Division—a venue known for handling a significant share of national patent litigation. Judges Robert Schroeder and Roy Payne have been assigned to the case, and a jury trial has been requested.
PayGeo’s founder, Rabih Salem Ballout, holds a series of patents granted by the U.S. Patent and Trademark Office (USPTO) between 2013 and 2024. These patents cover digital wallet features, secure transaction protocols, and mobile payment processes.
Five Patents Allegedly Violated by Samsung
The lawsuit centers on five patents—671, 296, 018, 307, and 347—which PayGeo claims were infringed through direct, induced, and contributory actions by Samsung.
One example is Patent 296, which covers fraud-prevention technology for mobile payments. The system enables two-way communication between financial institutions and devices, allowing secure storage of items such as credit cards, gift cards, transit passes, and event tickets. According to the suit, this system is directly used in Samsung Wallet without authorization.
Claims Extend Beyond Technology to Promotion
PayGeo asserts that Samsung not only used the protected technologies across both hardware and software without permission, but also actively promoted their use through customer support, website content, and marketing platforms like YouTube.
Evidence cited in the complaint includes documentation for features such as Samsung Pay, Rewards, Samsung Wallet, and store-specific loyalty integration, which allegedly demonstrate the application of PayGeo’s patented technology.
The complaint also identifies multiple models of Galaxy smartphones and smartwatches as devices where the technologies were implemented.
Plaintiff Seeks Damages, Injunction
PayGeo is demanding compensation for damages, royalties, interest, and litigation costs. The company also seeks a court order to prohibit Samsung and affiliated firms from further using or promoting the disputed technology. Additionally, the firm is requesting access to Samsung’s revenue data generated since the alleged infringement began.
As of April 13, 5:00 p.m., Samsung Electronics America had not responded to The Korea Daily’s request for comment.
Case Handled by Experienced Patent Litigators
PayGeo is represented by a five-attorney team, including Elizabeth L. DeRieux of Capshaw DeRieux LLP. The Marshall Division, where the case is being heard, is widely recognized for its role in patent disputes and currently manages nearly 25% of all such cases in the U.S.
Related Precedent: $100M Ruling Against Samsung
The same court awarded more than $100 million in November 2024 to Netlist, a semiconductor company, after finding that Samsung had infringed on its patent rights.
BY YEOL JANG [jang.yeol@koreadaily.com]
