TYLER, Texas—Wells Fargo has filed a motion with the U.S. District Court for the Eastern District of Texas asking the court to stay a recent jury decision that found Wells Fargo intentionally infringed on USAA's remote deposit capture (RDC) patents and ordered Wells Fargo to pay $200 million in damages.
As CUToday.info reported, experts have stated that USAA’s decision against Wells Fargo could lead to a wave of lawsuits against CUs.
In late 2017, credit unions – as well as other financial institutions – began receiving letters from a law firm alleging that the credit union's RDC function infringed on USAA's patents.
Wells Fargo's motion asks the court to stay the judgment in the case pending any post-judgment motions, including those related to an appeal or reconsideration of the damage amount.
“The bank has not indicated whether it will appeal the decision, but a stay certainly would indicate that is a strong possibility,” NAFCU said.
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt noted that credit unions often "offer RDC to members through a vendor or third-party’s software. We continue to encourage credit unions to review the contracts to determine how indemnity is addressed by each vendor or third-party in the event of a lawsuit regarding the software," Hunt said.
USAA's second claim against Wells Fargo is set to be heard in January. In a separate case, a California federal court is expected to determine whether the vendor that provides Wells Fargo, and numerous other financial institutions, with RDC technology infringes on USAA's patents.