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Dorsey’s Block Slips Suit Saying It Copied Payments Software (2)

May 4, 2022, 7:11 PMUpdated: May 4, 2022, 11:27 PM

Block Inc. has been freed from a patent-infringement suit claiming that it duplicated software covering digital coupons applied in online transactions.

A New York federal district court judge ruled Tuesday that AuthWallet LLC’s patent—U.S. Patent No. 9,292,852, regarding customer authentication and application of discounts in online transactions—was invalid as an abstract idea.

Block, the digital payments company headed by Jack Dorsey and formerly known as Square, had argued that AuthWallet’s patent “claims recite a basic business practice that has been around for well over a century—processing a discounted payment in a sales transaction—using generic computer components like ‘processors,’ ‘storage ...