United Services Automobile Association (USAA) is taking legal action against Regions Financial Corp., located in Birmingham. USAA claims that Regions has used its patented check deposit technology without authorization.
The lawsuit was filed on Tuesday in a U.S. District Court in eastern Texas. USAA is seeking damages and legal costs.
USAA’s remote check deposit system was designed for service members stationed away from home. This system is protected by four patents.
USAA first developed this technology in 2005. By 2009, it was ready for use with smartphones and tablets, allowing customers to take photos of their checks and deposit them from anywhere.
The lawsuit highlights that this was a significant change in how banking worked, enabling customers to turn everyday devices into tools for banking.
USAA argues that Regions’ Mobile Deposit app infringes on its patents. The suit states that USAA informed Regions of the potential infringement in 2020 and suggested a licensing agreement.
A spokesperson for Regions declined to discuss the ongoing lawsuit.
USAA has a history of defending its remote check deposit patents in court. The organization has previously taken legal action against banks like Wells Fargo and PNC.
In past cases, including two against Wells Fargo, USAA was awarded over $200 million. They have also formed licensing agreements with various banks to utilize their technology.
