SAN FRANCISCO – Biometric card manufacturer SmartMetric filed suit today against Visa and MasterCard claiming technology the card giants are piloting infringes on their patents covering chip-based “contact” and “contactless” smart card technology.
SmartMetric, based in Bay Harbor, Fla., is developing a portable biometric identity and transaction card capable of storing a wide variety of personal information. The card contains a tiny biometric fingerprint scanner and reader which only the owner can unlock and is smaller and thinner than a credit card.
In its suit, SmartMetric alleges some of the largest banks along with Visa and MasterCard are directly infringing their patent. Wells Fargo Bank, J P Morgan Chase Bank, US Bank and Silicon Valley Bank, among others have all announced plans within the past few months to issue EMV standard "contact" chip banking cards, the company noted. Several credit unions, including United Nations FCU, North Carolina SECU, Star One CU and Andrews FCU, have also rolled out EMV cards recently in partnership with Visa or MasterCard.
Last month a ruling was handed down by a federal court in California siding with SmartMetric on certain aspects of the patent and the company is suing the card giants based on that ruling.
U.S. banks are converting to the "contact" EMV chip cards since many of the retail credit card machines and ATM machines in most parts of the world no longer accept magnetic strip credit cards.
SmartMetric is seeking preliminary and permanent injunction against both Visa and MasterCard to prohibit them from further infringements along with a cash award for damages and a royalty payment.
Representatives of Visa and MasterCard did not immediately respond to requests for comment.
