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National Issue to Keep on Radar: Remote Deposit Court Decision

On November 6th a U.S. District Court jury awarded USAA $200 million in a patent infringement lawsuit against Wells Fargo regarding remote deposit capture (RDC). USAA filed the lawsuit in 2018 against Wells Fargo alleging that the bank infringed on USAA RDC patents related to mobile check capture.

From USAA’s perspective per their 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 release also noted 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.

This decision has ramifications for credit unions as USAA sent letters to many credit unions asking them to negotiate license deals regarding 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, Rounds or their own attorney with questions. Be on the lookout for a webinar from CUNA soon for more information.

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