PNC convinces US appeals court to overturn $218 mln USAA patent verdict

By Blake Brittain

June 12 (Reuters) - A U.S. appeals court on Thursday sided with PNC Bank [RIC:RIC:PNCBKN.UL] and overturned a $218 million verdict won by financial services provider United Services Automobile Association USTEX.O in a patent dispute over mobile check-deposit technology.

The U.S. Court of Appeals for the Federal Circuit said that the patents USAA had accused PNC of infringing were invalid.

The case is part of a series of patent lawsuits brought by USAA against other financial services providers over its technology. San Antonio-based USAA has settled similar disputes with banks including Wells Fargo and Truist and filed a related ongoing lawsuit against Regions Bank in January.

Spokespeople and an attorney for USAA did not immediately respond to a request for comment on the Thursday decision. A PNC spokesperson said the bank appreciates that the court "recognized that USAA’s patents should never have been issued."

USAA said in its 2020 lawsuit against PNC that its "Deposit@Home" technology was developed to allow military members overseas to deposit checks remotely. It had convinced a Texas jury in 2022 that PNC's mobile deposit feature worked in the same way as its patented technology and owed $218 million for violating its rights.

PNC told the Federal Circuit that the 2022 verdict could not stand because the patents were invalid. A three-judge panel agreed with PNC on Thursday, finding that the patents covered "the abstract idea of depositing a check using a mobile device" using "only routine and well-known steps."

The case is United Services Automobile Association v. PNC Bank NA, U.S. Court of Appeals for the Federal Circuit, No. 23-1778.

For USAA: Willy Jay of Goodwin Procter

For PNC: Mark Fleming of Wilmer Cutler Pickering Hale & Dorr

Read more:

USAA wins $218 mln verdict from PNC in mobile-deposit tech trial