A law firm representing USAA began sending out patent licensing demands to many credit unions in late 2017, alleging those institutions were infringing on a USAA patent involving RDC services.
The letters offer credit unions the change to pay a “licensing fee” for continued use of the RDC software or face legal action. The letters do not identify specific software.
The law firm followed up these letters in 2018 with letters repeating the allegations and offering “Special Limited Time Pricing” via a lump sum.
It is recommended credit unions:
- Make sure to review contracts with software vendors for indemnity clauses;
- If appropriate, advise vendors they need to respond to the infringement/licensing demand;
- Check state licensing codes for information on indemnification; and
- Check business insurance policies to see if patent infringement is covered.
The webinar also reviews USAA’s litigation involving Wells Fargo, who USAA has filed two lawsuits against, asserting violations of various RDC-related patents. Speakers discussed the details of these claims and how they would relate to future legal actions.
The is the second webinar CUNA has hosted on the topic. CUNA is currently developing an advocacy strategy for the issue and urges credit unions that have received such letters to contact CUNA at USAA.Patent@cuna.coop.