Removing Barriers Blog

USAA Patent Litigation Verdict
Posted November 07, 2019 by CUNA Advocacy

USAA was awarded $200 million in a U.S. District Court jury trial in a patent infringement lawsuit against Wells Fargo yesterday.  USAA filed suit in June 2018 against Wells Fargo alleging that the bank infringed on certain USAA patents for remote check capture (RDC), specifically patents related to mobile check capture.

According to USAA’s press release “Nearly every U.S. bank and credit union uses this [RDC] technology, benefiting some 87 million U.S. consumers. USAA continues to seek opportunities to create reasonable and mutually beneficial licensing agreements with banks and credit unions for use of USAA’s mobile remote deposit capture process.” The press release also noted that USAA has filed a separate suit for additional patents related to RDC against Wells Fargo in the U.S. District Court for the Eastern Division of Texas with a scheduled for January 2020.

This decision has ramifications for credit unions as USAA has sent letters to many credit unions asking them to negotiate license deals for using RDC technology that USAA claims to have developed. CUNA’s patent litigation attorney, Mike Rounds of Brownstein Hyatt Farber Schreck LLP, said that USAA is likely to aggressively enforce these patents, which could lead to litigation for credit unions.

Credit unions should contact their RDC technology vendor, Mike Rounds or their own attorney with questions.  Mitek has recently filed a declaratory judgment action for non-infringement of certain USAA patents in San Francisco, California but there may be limitations as to the scope of that litigation and what it can potentially accomplish for credit unions that use its software.  CUNA is organizing a webinar to provide more information.