Square is a very interesting startup company. It creates a card reader that you put on top of your iPhone and you can swipe a credit card on that reader. It’s very easy to appreciate the value proposition of this device. It enables credit card transactions. You just need to put your Square card reader on your iPhone after you checked certain online stores and is ready to check out. It makes checking out much easier. It’s a great tool to facilitate e-commerce.
Well, just like with any hot idea, there is bound to be disputes, either with outsiders of the company, or contractors, or among the founders. This is what happened with Facebook. Originally, they had issues with one of the founders and there was a lawsuit and things finally got ironed out before Facebook went IPO. In fact, one of those founders that protected his interest in Facebook walked away a billionaire from the whole drama-filled situation. Well, it looks like there’s gonna be a lot drama regarding Square.
Square is the company that made iPhone based card readers possible. The legal drama centers on who invented the card reader. Apparently, Washington University associate engineering professor Robert Morley is suing the co-founders of Square, Jim McKelvey and Jack Dorsey. The lawsuit is claiming that Square defrauded Morley and infringed on his patent. Basically, he is asking for royalties and monetary damages. This is gonna be big because Square is one of the hottest tech companies in San Francisco and it’s the darling of many venture capital companies. According to many industry observers, it is slated for an IPO in 2014. It remains to be seen if things will be resolved peacefully between Morley and the two other founders.
Apparently according to papers filed in court, the idea for Square was Jack Dorsey’s and Jim McKelvey’s. They just needed Morley to come up with a prototype. Well, chances are high this is probably be going to get settled out of court, especially, as Square heats up for an IPO. If this sounds like the action that took place behind close doors with Facebook among the founders, you would be absolutely correct!