Russia has banned Samsung smartphones and their payment system. How will this affect users

Due to patent trolls, Russia has restricted the import of 61 models of Samsung smartphones. Problems may

touch not only Samsung Pay, but also Apple Pay and Google Pay.

Why has Samsung smartphone models been banned in Russia?

It all started in a patent dispute in which Squin SA and Samsung are involved. Its representatives stated that Samsung's electronic payment system repeats the Squin SA patent.

As a result, the Moscow Arbitration Court upheldaccusation and banned the import of smartphones into the country on which Samsung Pay is pre-installed. The decision has not yet been finalized: from the moment of publication of the results of the meeting, Samsung will have a month to appeal it.

Patent sportdoes this mean Samsung stole the idea from someone?

In fact, yes, but in reality the situation is more complicated. It’s all about the company “Squin SA”; in 2013, it filed a patent called “Electronic payment system”: it is distributed throughout Russia.

According to patent documents, the companypatented a way to shop online using a smartphone and a merchant's checkout: "they must be connected wirelessly using any known standards and protocols."

But the fact is that the Squin SA company itself, which patented the technology, does not use it. There is no data on the operation of production or the release of goods with a patented function.

Despite this, the very principle of the serviceOnline payments, according to the patent, can only be used in Russia by Squin SA. Experts call the company a patent troll - it does not use patented technology and prevents others from developing it. Patent trolls are commonly referred to as individuals or companies who abuse patent law to gain profit.

As the Deputy Chairman previously statedAnatoly Semenov, Committee of the Russian Union of Industrialists and Entrepreneurs (RSPP) on Intellectual Property, in the Chamber of Patent Disputes should make a decision in favor of Samsung.

"It seems that the court, due to inattention, did not consider the clarified claims, and there is an option that the main decision was made not according to the claims that were actually declared."

Semenov is confident that Samsung will challenge the decision after studying the materials.

If Samsung Pay is compromised, does that mean Apple Pay and Google Pay could be banned as well?

Yes, there is such a possibility too.The fact is that technically the process of paying by phone works the same in all devices. According to Alexandra Kurdyumova, senior partner at the law firm Versus.legal, Apple Pay and Google Pay services are also at risk due to the patent challenge.

For contactless payment services usingthe phone has minor differences in the algorithm, for example, in Apple devices, when paying, a fingerprint, face or code confirmation is required; in Samsung Pay, this can be done only with a four-digit code or fingerprint.

You can link no more than eight bank cards to Apple Pay, ten to Samsung, and Android Pay does not limit the number of cards.

Now Russia will ban Samsung Pay and that's it?

The exact fate of Samsung Pay is still unknown. The decision of the first instance has not yet been made, as Samsung is going to appeal against it, so you need to wait for the next meeting. No date has been set yet.

If Samsung loses the lawsuit, thenIn Russia, not only Samsung Pay will be banned, but also the sale of smartphones with this function pre-installed. 61 models may be subject to the ban, starting with devices that were released in 2017.

The following were banned:Galaxy Z FFlip, Galaxy Fold, Galaxy Z Fold 2,Galaxy S21, Galaxy S21 +, Galaxy S21 Ultra 5G, Galaxy S20 FE, Galaxy S20, Galaxy S20 +, Galaxy S20 Ultra, Galaxy S10e, Galaxy S10, Galaxy S10 +, Galaxy S10 Lite, Galaxy S9, Galaxy S9 +, Galaxy S8, Galaxy S8 +, Galaxy S7 Edge, Galaxy S7, Galaxy S7 Edge +, Galaxy S6, Galaxy S6 Edge, Galaxy Note 20, Galaxy Note 20 Ultra, Galaxy Note 10, Galaxy Note 10+, Galaxy Note 10 Lite, Galaxy Note 9, Galaxy Note 8, Galaxy Note 5, Galaxy A72, Galaxy A52, Galaxy A32, Galaxy A41, Galaxy A71, Galaxy A51, Galaxy A80, Galaxy A70, Galaxy A50 (128GB), Galaxy A40, Galaxy A31, Galaxy A30s, Galaxy A30, Galaxy A50 (64GB ), Galaxy A20, Galaxy A9 (2018), Galaxy A7 (2018), Galaxy A8, Galaxy A8 +, Galaxy A6, Galaxy A6 +, Galaxy A7 (2017), Galaxy A5 (2017), Galaxy A3 (2017), Galaxy A7 ( 2016), Galaxy A5 (2016), Galaxy J6 +, Galaxy J4 +, Galaxy J7, Galaxy J5 (2017).

What should the owners of smartphones, which have been banned, do?

As the CEO of Telecom Daily explainedDenis Kuskov, those who have already bought a smartphone that has been banned should not worry, since their sanctions should not be affected. Lawyers interviewed by Kommersant said that the corporation will not be obliged to stop selling devices - it will be enough not to reinstall the service on them.

So far, it cannot be said for sure that the service fromSamsung will be banned in Russia, and some of the latest smartphones will disappear from sale. Experts are confident that the company will either appeal the decision to a higher court, or challenge the patent itself, or agree with the plaintiff, for example, by buying out the patent.

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