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Discussion Boards > Remote Deposit Capture Discussions > USAA Patents View modes: 
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John - 11/7/2019 8:50:13 AM
   
USAA Patents
On Nov. 6th, 2019, according to a USAA Press Release, "A U.S. District Court jury in Marshall, Texas, has found that Wells Fargo willfully infringed on two USAA patents for the “auto capture” process...". 

USAA has apparently sent hundreds of notice letters to various financial institutions regarding their patents. With this jury finding in the Wells case, what's next for the industry? Is Wells unique, or have others in the industry done the same thing?

In another, much older, Patent case, DataTreasury (many referred to them as a "patent troll") sued many FIs and solution providers over Remote Deposit Capture patents. In the end, DataTreasury effectively lost, but not without many lawsuits, settlements and court cases along the way. How is the USAA case different from what happened with DataTreasury?

To make matters more complicated, USAA and Mitek were battling over patents just a couple of years ago. They eventually settled, but does that protect solution providers and FIs who employ the Mitek Technology?

We hope the industry will use these open discussion boards to pose questions, share information and gain a better understanding of these issues. What are your thoughts and insights?

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John - 11/12/2019 10:45:28 AM
   
RE:USAA Patents
We reached out to USAA to try and get some of the above questions answered. Despite the fact they issued a press release on this matter and provided contact information for questions, when we contacted them, they said they are not making any comments on the matter. Here we are, trying to help the industry better understand the implications of the verdict and provide more information and insight for everyone, and.... well... Frustrating, to say the least.

We'll keep working to shed more light on this issue. In the meantime, please post here or email me with any comments, insights, etc.

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John - 11/12/2019 11:08:23 AM
   
RE:USAA Patents - Mitek Actions with the Dept. of Justice
Mitek announced quarterly earnings last week, and in their conference call with analysts, they provided some information on this matter…

Mitek’s CEO, Max Carnecchia read the below from a prepared statement:
Turning our attention to USAA's continued attacks on the financial industry. As we have noted previously and included in our filings beginning in 2018, USAA has challenged many financial institutions with allegations that components of such institutions remote check deposits solutions infringe upon certain of USAA's patents.

In 2018, USAA filed two lawsuits against Wells Fargo alleging these claims. Mitek strongly believes that we have invented all of our core technology and that our products do not infringe on any USAA patents. As such, even though USAA has not sued Mitek directly for infringement of any USAA patents, on November 1st, Mitek filed a complaint seeking a declaratory judgment that is -- that its automatic-check image capture product does not infringe on certain patents owned by USAA. Subsequently, this week, one of the Wells Fargo lawsuits was concluded in the Eastern District of Texas.in favor of USAA with damages against Wells Fargo in the amount of $200 million.

We believe this is an incorrect verdict. This verdict is subject to post-trial motions and appeal by Wells Fargo. We intend to prove through the DJ Action that Mitek's technology does not infringe on USAA's patents. We view the DJ Action as an important step to provide certainty to our customers concerning the use of our automatic check image capture technology.
As this is a very complex area of intellectual property law and subject to ongoing litigation, we are limited in what information we can share publicly…


Later in the conference call an Analyst asks about the previous USAA / Mitek issue / lawsuit / settlement, and how that impacts Mitek and its customers who use Mitek Technology. Mr. Carnecchia replied with the following;
The matter that was resolved between USAA and Mitek, it goes back six or seven years ago and was an intellectual property and patent issue, but it was not related to what's on tap here today. What we mentioned in this earnings call and what was released in the 8-K today is really us taking the offensive action last week with the DJ looking for the judgment from the court, so that we can basically prove that Mitek's MiSnap auto-check image capture technology does not infringe on the USAA patents. And that's our obligation and our strong feelings to vigorously protect our innovation, our IP, and the rights of our end users.


The analyst then asks for a bit more clarification, “But to be clear, the patent issue that they are going after Wells Fargo for that you are actively defending around MiSnap is different than the issue we had… six, seven years ago?” To which Mr. Carnecchia replied “Yeah. Maybe touch each other and be related in some way, but it is different enough, that obviously, have ended up in court.”

Thoughts? Comments? Reactions?

Recent Forum Posts

RE:USAA Patents - Mitek Actions with the Dept. of Justice

Mitek announced quarterly earnings last week, and in their conference call with analysts, they provided some information on this matter… Mitek’s CEO, Max Carnecchia read the below from a prepared statement: Turning our attention to USAA's continued attacks on the financial indu...
Posted on 11/12/2019 11:08:23 AM


RE:USAA Patents

We reached out to USAA to try and get some of the above questions answered. Despite the fact they issued a press release on this matter and provided contact information for questions, when we contacted them, they said they are not making any comments on the matter. Here we are, trying to help the...
Posted on 11/12/2019 10:45:28 AM


USAA Patents

On Nov. 6th, 2019, according to a USAA Press Release, "A U.S. District Court jury in Marshall, Texas, has found that Wells Fargo willfully infringed on two USAA patents for the “auto capture” process...".  USAA has apparently sent hundreds of notice letters to various ...
Posted on 11/7/2019 8:50:13 AM