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USAA, Mitek Settle Lawsuit

The two entities had been in a years-long legal battle over mobile remote deposit technology.

Financial services company USAA and mobile imaging software solutions provider Mitek Systems settled a long-standing legal battle this week centered on remote deposit capture technology, with neither company accepting liability or making any kind of payment.

The two entities have been in litigation since March 2012. Initially, San Antonio-based USAA Bank filed a lawsuit claiming that Mitek appropriated its trade secrets and technology when developing its mobile RDC system. Shortly thereafter, in April 2012, Mitek filed a countersuit claiming that USAA infringed upon five Mitek patents relating to image capture on mobile devices, and that USAA breached the parties' license agreement by using Mitek products beyond the scope of the agreed-upon license terms.

Now, the two sides have agreed to resolve the concurrent claims, according to statements from both companies. USAA said it will move to dismiss all of its remaining claims, including its claims for misappropriation of trade secrets, breach of contract, fraud, inequitable conduct, and invalidity of Mitek's patents. Meanwhile, Mitek will also move to dismiss all of its remaining claims, including for trade defamation and violations of the Lanham Act, and said it will not sue USAA for patent infringement for products currently sold, marketed, or advertised by USAA.

USAA also said it is retaining its license to use Mitek's Quick Strokes, Quick FX Pro, and Image Score software products.

[Related Content: How to Protect Your Intellectual Property.]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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kdas302
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kdas302,
User Rank: Apprentice
9/19/2014 | 7:44:32 PM
Re: Alot for Nothing
Now the two companies have to live together like a bad marriage.. Lawyers never do anything productive and innovative...
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
9/8/2014 | 3:22:07 PM
Re: Alot for Nothing
But in big business there's more money involved. It's easy to share when all you have is the lunch money in your pocket. Up the stakes and those simple lessons are very easy to forget.
MickSimonelli
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MickSimonelli,
User Rank: Author
9/8/2014 | 12:12:21 PM
Re: Alot for Nothing
Reminds me of the first three rules from the book "All I Really Need to Know I Learned in Kindergarten":

1) Share 2) Play fair and 3) Don't hit people.  They apply to big business as well as toddlers :)
Byurcan
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Byurcan,
User Rank: Author
9/8/2014 | 12:02:07 PM
Re: Alot for Nothing
Thanks for your insight Mick. Yes, it's unclear what was gained from this lawsuit
MickSimonelli
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MickSimonelli,
User Rank: Author
9/8/2014 | 12:00:07 PM
Alot for Nothing
I was leading the USAA innovation program when they decided to pursue this lawsuit. ALOT of time, energy and $$ went into this...only to come out with what? the same terms as when it all started? Very poor results...
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