iPhone credit card reader Square stalls on patent issues
Audio-based payment system already patented, could cause problems for Twitter creator
We reported on the dongle-based audio signal credit card reader for iPhone and other connected mobile devices a short while ago, which has been pioneered by Twitter creator Jack Dorsey.
Square uses a small device that plugs into any connected device with an audio jack input, and allows users to swipe credit cards and accept secure payments - even providing facial confirmation of the card owner for the operator.
According to a report on ElectricPig, Square could be about to stall due to an unexpected patent infringement. The system for using audio signals to send secure data was patented by electrical engineering professor at Washington University Bob Morley, who built the prototype of Square before falling out with the company over accepting shares for his work.
If Morley is granted ownership of the patent (which seems likely), Square could find itself paying out a lot of money in licence fees where it could previously have negotiated a much more affordable allowance in company shares.
