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A California-based online payments technology company Boom Payments accused Shopify and Stripe Inc. of infringing their online payment patent. The lawsuit was filed on 1st February, at the US District Court for the Northern District of California. The patents in question, US numbers 8,429,084 and 9,235,857, are for “confirming local marketplace transaction consummation for online payment consummation”. They refer to specific improvements to computer systems for processing and authentication of internet-based transactions.
According to the claim, the commercial applicability of Boom’s technology since its inception has only grown. The Boom has partnered with hundreds of merchants, who have used Boom’s payment authentication technology on their websites. Boom claimed that Stripe and Shopify have processed millions of Internet-based transactions using Boom’s technology without any authorization from them. In addition, Boom did not receive any compensation either. They accused these two companies of willful infringement of their patents.
According to the claim, both of these companies are familiar with Boom's technology. Boom further claimed that in 2013 they had discussed its patented technology with Stripe with the objective of developing a payment authentication product that stripe could offer to its customers. In the suit, Boom alleged that Stripe had simply copied their invention and launched its own platform after a year. Shopify got stuck in this suit because Shopify’s accelerated checkout feature was powered by Stripe platform based payment processor.
The Boom is seeking damages from both of these companies due to willful infringement of its patents. They also requested the Court to grant permanent injunctive against both Stripe and Shopify, preventing them from further use of the application.