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You may have seen the news that on Nov. 6, a U.S. District Court jury awarded USAA $200 million in a patent infringement lawsuit against Wells Fargo regarding Remote Deposit Capture (RDC). USAA has for several years alleged that not only banks, but credit unions alike have infringed on their RDC patent related to mobile check capture by sending letters to try and get these institutions to sign licensing agreements.
Now that there has been a court ruling in their favor, USAA is likely to become more aggressive with institutions that have received the request for licensing agreement letters in the past and could possibly target additional banks and credit unions. What can credit unions do to protect themselves from possible litigation?
Laura Gober, vice president of compliance and regulatory services with LSCU, says there are some mitigation steps you can take.
“Review the licensing or services agreement you have with your remote deposit vendor as there may be specific deadlines or other actions required on your part should you be notified of an allegation, such as the one from USAA,” she said. “Not following such instructions could result in the credit union waiving their rights. I also recommend contacting your bond company. Often they provide additional guidance or have attorneys available to their clients to discuss the best steps to take.”
If you have received or receive in the future one of these letters from USAA or a similar letter from any company, act immediately. Non-action or a wait-and-see approach could result in unwanted circumstances.
On Nov. 20, CUNA will host a webinar on the USAA litigation and how the verdict affects your credit union. To register click here.
