WASHINGTON—Litigation surrounding remote deposit capture (RDC) technology continues, with the U.S. Patent Office’s Patent Trial and Appeal Board recently invalidating three of USAA’s patents related to mobile check deposit.
The board reviewed the patents at the request of PNC Bank. In 2022, a federal jury in Texas awarded USAA over $218 million from PNC for infringing on at least one of four mobile banking patents. USAA indicated it will appeal the patent board’s decision, which could be used to overturn the Texas decision, NAFCU noted in its review of the case.
USAA has argued other financial institutions’ use of RDC technology infringes on its patents for almost a decade. In 2021, USAA and Wells Fargo reached a settlement in a pair of related lawsuits in which juries found Wells Fargo liable to pay $300 million for violating patents.
Also A Threat to Credit Unions
The concerns aren’t just limited to banks. USAA in late 2017/early 2018 began sending letters to some credit unions alleging their RDC technology infringed on patents owned by USAA. Through these letters, USAA sought voluntary licensing fees from other financial institutions and invited credit unions to call the firm to discuss licensing USAA patents, NAFCU noted.
“In addition to these cases, NAFCU has also monitored a vendor's request for judgment that its technology does not infringe on USAA's patents. Mitek Systems – the vendor – provides RDC technology to Wells Fargo and thousands of other financial institutions,” the association said. “Following last year’s PNC decision, a U.S. appeals court restored Mitek’s lawsuit, saying more consideration should have been given to it before it was dismissed.”
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