UK Startups Ensygnia and Paddle Collide over Alleged Mobile Patent Infringement

Ensygnia and Paddle – two London based payment startups – are all set to lock horns, and not in a very friendly manner. According to TechCrunch, Ensygnia is suing Paddle for alleged patent infringement related to login as well as payments. Paddle on the other hand is disputing this infringement and is confident of its dismissal. Being backed by significant shareholders to whom we owe a duty of care to safeguard our IP, we approached Paddle more than a year ago when we discovered what they were doing, as our view was that it was a clear infringement, said Richard H Harris, co-founder and CEO of Ensygnia.

We have tried many times to reach a reasonable settlement with Paddle, even offering to engage an independent auditor to determine reasonable licensing fees given the fact they we’re also a startup, he added.

Paddle disagrees. Our system operates in a crucially different way to that described in their patent. Furthermore, there is a granted European patent and a Stanford research paper that both predate the Ensygnia patent’s filing date, Paddle CEO Ed Lea, told TechCrunch.

About Ensygnia:

Ensygnia was founded in 2012 by Richard H. Harris (CEO) and Matt Deacon (CTO) and is the mobile interaction company behind the breakthrough Onescan omni-channel app. Onescan enables mobile payments online, in-store and on-the-go and has applications for log-in, authentication and mobile identity. In the payments world it allows customers and prospects to typically go from looking to buying in less than 10 seconds.

Ensygnia’s patented technology platform and service enables any connected device with a camera to interact and transact with any connected device with a screen. The company raised a total of $3.3m in its seed funding stages. As well as its management team, others seed round investors included Telefonica, Wayra, Jesus College Cambridge and Roddy Swire of Pantheon Ventures The company’s two granted UK patents for the Onescan process cover both log-in and payment applications and it has filed its patents in some 59 countries worldwide.

This video gives you an overview of their platform:

Awards include being voted one of the innovations likely to have greatest impact on global mobile industry over the next 10 years at the Mobile World Congress in Barcelona; being a finalist in the Consumer Trust category at the Meffys; a winner in the UK’s Smarta 100 Awards for Britian’s best and brightest new businesses, and being named one of the top-ten UK Start-Ups in 2013.

Ensygnia has put together a powerful network of partners and system integrators to support the market entry of its identity driven, PCI Level 1 compliant solution including Hewlett Packard, Verifone GlobalBay, Star Micronics, and Snaptaps - its showcase retail price drop website.

About Paddle:

Paddle, founded in May 2012 by Ed Lea, enables e-commerce transactions to be completed in a few seconds with just a couple of taps. Paddle completes payment for its users, rather than having them fill out forms. The company has received a funding of $203.7K (£150k) through Seed Round in June 2012.

  • Paddle Accepts payments via MasterCard, Visa, PayPal & American Express. They utilize Braintree as payment processor.
  • No one at Paddle has access to the user’s card details.
  • Users do not have to fill in a cumbersome list of personal and payment details everytime they need to complete a transaction.
  • Paddle app only requires the users to provide these details once, which then get stored automatically and in a secure manner.
  • The system uses banking-grade security measures to keep card details encrypted. Also, for higher security – the system requires that the user types in the security code for the card he is utilizing to make the payment.
  • Any web page that is equipped with the ‘Pay with Paddle’ facility, enables users to checkout with a single click. The entire process takes less than 15 seconds says the company.