PNC faces USAA mobile filing patent applications, Texas court says


  • Court rejects PNC’s initial arguments that its system does not infringe
  • Tech previously involved in $ 300 million dispute between USAA and Wells Fargo

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(Reuters) – PNC Bank is facing allegations that its mobile banking technology infringes the patents of the military-focused financial services group United Services Automobile Association, a federal court in east Texas has ruled.

U.S. District Judge Rodney Gilstrap in Marshall, Texas said on Friday that PNC couldn’t show early in the case that its technology of using a cell phone to make bank deposits works differently from the USAA patented technology.

The USAA previously sued Wells Fargo in the same court for infringement of related patents, winning two jury verdicts totaling more than $ 300 million before the parties settled an undisclosed amount in February.

PNC declined to comment on the decision. USAA and its attorney Jason Sheasby of Irell & Manella did not immediately respond to a request for comment, neither did PNC attorneys Gregory Stone of Munger Tolles & Olson, Lionel Lavenue of Finnegan Henderson Farabow Garrett & Dunner, or Melissa. Smith by Gillam Smith.

The San Antonio-based USAA, which provides financial services to the military, first sued PNC last year for violating four patents related to a remote check deposit system using devices. mobile.

One of the patents was also at issue in the USA’s $ 200 million jury victory over Wells Fargo in 2019.

In a separate case, the USAA sued PNC in March, alleging infringement of two other mobile banking patents. Those patents were previously the basis for the second USA jury victory over Wells Fargo last year for $ 102 million.

Pittsburgh-based PNC decided to dismiss the USAA’s allegations in the case last year, arguing that its mobile deposit system does not work the same way as patented technology.

Gilstrap denied the PNC’s request on Friday, believing at this point that the USAA’s claims were plausible.

PNC had argued that one of the USAA patents requires the use of a single system with both a “customer’s mobile device” and a “bank computer”, and that it does not infringe. because it does not manufacture, use or sell mobile devices. . PNC also stated that he could not violate because customers, and not PNC, “complete” the PNC system using their mobile devices.

Gilstrap said the PNC’s arguments “involve questions of fact and law that are not ripe for ultimate resolution” and that the USAA’s claims – which cite, among other things, the PNC’s own videos on the functioning of his system – were sufficient to support his cause.

PNC’s arguments that he did not infringe the other three patents “generally suffer from the same shortcomings,” Gilstrap said.

Gilstrap also rejected PNC’s argument that he could not have infringed the patents indirectly because he had no knowledge of them prior to trial, holding it plausible that PNC was aware of the patents based on the argument. of the USAA that they were widely disseminated in banking industry publications. , among others.

PNC sued the USAA in June for allegedly infringing four of its m-banking patents.

The case is United Services Automobile Ass’n v. PNC Bank NA, US District Court for the Eastern District of Texas, No. 2: 20-cv-00319.

For USAA: Jason Sheasby of Irell & Manella

For PNC: Gregory Stone of Munger Tolles & Olson, Lionel Lavenue of Finnegan Henderson Farabow Garrett & Dunner, Melissa Smith of Gillam Smith

Read more:

Wells Fargo Received $ 200 Million East Texas Patent Verdict

Wells Fargo Loses Pre-Trial Challenge on USAA Mobile Check Deposits Patent

Blake brittain

Blake Brittain reports on intellectual property law, including patents, trademarks, copyrights and trade secrets. Contact him at [email protected]

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