US-based PACid Technologies has filed a lawsuit against Samsung Electronics accusing the Korean tech giant of patent infringement.
All of Samsung’s Galaxy smartphone models of the past three years are implicated in the lawsuit, including the Galaxy S6, S7, S8, and their Edge iterations. PACid asserts that the PASS biometric authentication and KNOX security systems used in the Samsung devices infringe on three patented encryption technologies from PACid, one of which is filed in Korea and the other two in the US. PACid’s claims to compensation reach up to $3 billion in value.
Multiple reports have suggested that PACid’s business model revolves around such lawsuits, with The Investor suggesting that industry sources call PACid “a patent troll” that relies on “suing companies that actually develop and sell products based on loose interpretations of intellectual property regulations.” PACid’s website focuses on its filed patents and inventions, but does not list any licensing agreements with companies offering products and services. Referring to its CEO Guy Fielder, the company says “[p]roducts using Guy’s inventions generate tens of billions of dollars in revenue annually.”
If the company is indeed a ‘patent troll’, it is likely seeking some kind of settlement with its target. For its part, Samsung says it is currently preparing to fight the lawsuit in the US, suggesting the company, which is a member of the FIDO Alliance Board of Directors, intends to protect the authentication technology industry from any potential chilling effects that PACid’s success could result in.