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Authentixx v. Lone Star Bank — Web Authentication Patent Dispute | PatSnap
Patent Litigation

Authentixx v. Lone Star Bank: Web Authentication Patent Case Dismissed in 96 Days

Authentixx, LLC asserted two web authentication patents — US7631191B2 and US10355863B2 — against Lone Star Bank in the Southern District of Texas. The infringement action resolved in just 96 days, with the parties agreeing to settle and moving for dismissal of all claims.

Resolution time
96days
Case resolved in under 100 days — well below typical district court patent timelines.
Patents asserted
2
US7631191B2 and US10355863B2 — web page and electronic content authentication systems
Outcome
Case Dismissed
All claims and counterclaims resolved by agreement; dismissal entered by the court.
Cost ruling
Each Side Bears Own Costs
All litigation costs, including attorney and expert fees, borne by the party incurring same.
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

Authentication patent claims against a Texas community bank resolved swiftly

On April 5, 2023, Authentixx, LLC filed a patent infringement action against Lone Star Bank in the U.S. District Court for the Southern District of Texas (Case No. 4:23-cv-01275), before Judge George C. Hanks. Authentixx asserted two patents — US7631191B2, covering a system and method for authenticating a web page, and US10355863B2, covering a system and method for authenticating electronic content — against the Texas-based bank.

The recorded Basis of Termination is 'Case Dismissed.' The docket order, filed pursuant to Fed. R. Civ. P. 41(a), reflects that the parties agreed to settle, adjust, and compromise all claims and counterclaims, and jointly moved to dismiss Authentixx's claims against Lone Star Bank with prejudice and Lone Star Bank's counterclaims against Authentixx without prejudice. All litigation costs — including attorney and expert fees — were ordered to be borne solely by the party that incurred them. The specific terms of the settlement are not disclosed in the available record.

The case concluded in just 96 days from filing to closure, suggesting a swift resolution consistent with early-stage settlement negotiations. The asymmetric dismissal structure — claims with prejudice, counterclaims without prejudice — is noted in the motion text, though what drove the parties to resolution at this early stage is not disclosed in the public record.

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Case at a glance
CourtTexas Southern District Court
JudgeGeorge C Hanks
FiledApril 5, 2023
ClosedJuly 10, 2023
Duration96 days
OutcomeCase Dismissed
Verdict causeInfringement Action
BasisCase Dismissed
Prior Art Intelligence
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Case data sourced from PACER / Texas Southern District Court via PatSnap Eureka Litigation Intelligence Explore similar cases ↗
Case timeline

Filing to Case Dismissed in 96 days

Case resolved in under 100 days — well below typical district court patent timelines.

Case timeline: Complaint filed APR 5 2023 — 96 days total Horizontal timeline showing the three key events in Authentixx, LLC v Lone Star Bank from filing to resolution. Source: PACER, Texas Southern District Court. APR 5 2023 Complaint filed Pre-trial proceedings JUL 10 2023 Case Dismissed 96 DAYS TOTAL
Patent at issue

US7631191B2 & US10355863B2 — Web and Electronic Content Authentication

Publication No.US7631191B2
Application No.US11/423340
Patent details
Productsystem and method for authenticating a web page
Cited in actionApril 5, 2023

Publication No.US10355863B2
Application No.US15/835816
Patent details
Productsystem and method for authenticating electronic content
Cited in actionApril 5, 2023
Technical brief · sourced from PatSnap patent database
Patent figurePatent figure
Representative claim (1 of 5 independent)
1. A method comprising: transforming, at an authentication host computer, received data by inserting an authenticity key to create formatted data; and returning, from the authentication host computer, the formatted data (i) to enable the authenticity key to be retrieved from the formatted data and (ii) to locate a preferences file, wherein an authenticity stamp is retrieved from the preferences file.
Technical background
CROSS-REFERENCE TO RELATED APPLICATIONS This application is a continuation of and claims priority to U.S. application Ser. No. 09/656,074 filed on Sep. 6, 2000, which application is a non-provisional of and claims priority to U.S. Provisional Application No. 60/153,004, filed Sep. 9, 1999, the entire contents of which are hereby incorporated by reference. FIELD OF THE INVENTION The present invention relates generally to computer security, and more particularly, to systems and methods for authenticating a web page.…
Patent family
6 family members across 4 jurisdictions (AR, US, AU, WO)
PatSnap Eureka · FTO Search Agent
Should you run an FTO against US7631191B2 and US10355863B2?

Any organisation operating web-based authentication systems — particularly in financial services, fintech, or digital banking — should consider a freedom-to-operate assessment against US7631191B2 and US10355863B2. This case demonstrates that Authentixx is actively enforcing these patents in federal court. If your platform authenticates web pages, digital documents, or electronic content in ways that may read on these claims, the risk is material.

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Official verdict

Official order — verbatim text

Pursuant to Fed. R. Civ. P. 41 (a), Plaintiff Authentixx, LLC and Lone Star Bank have agreed to settle, adjust, and compromise all claims and counterclaims against each other in the above-captioned actions. The parties move the Court to dismiss in the above-entitled cause any and all claims by Authentixx against Lone Star Bank with prejudice and to dismiss any and all counterclaims by Lone Star Bank against Authentixx without prejudice. Authentixx and Lone Star Bank also move the Court to order that all costs and expenses related to this litigation (including attorney and expert fees and expenses) shall be borne solely by the party incurring same. A proposed Order accompanies this motion.
Source: PACER Docket, Case 4:23-cv-01275, Texas Southern District Court

The dismissal order, entered pursuant to Fed. R. Civ. P. 41(a), reflects a joint motion in which the parties represented they had reached a settlement of all claims and counterclaims. The order's asymmetric structure — Authentixx's claims dismissed with prejudice, Lone Star Bank's counterclaims without prejudice — is notable, though the underlying reasons and any settlement consideration are not disclosed in the available public record.

PACER case 4:23-cv-01275 · Public docket record Explore in Eureka ↗
Dismissal terms

Case dismissed: what the agreed resolution means for both parties

Legal mechanism

Rule 41(a) dismissal following agreed settlement

The parties invoked Fed. R. Civ. P. 41(a) to jointly move for dismissal after representing to the court that they had agreed to settle, adjust, and compromise all claims and counterclaims. This procedural mechanism allows parties to end litigation by agreement without a full merits adjudication. The specific terms of the underlying settlement are not disclosed in the available record.

Consensual dismissal
Patent holder outcome

Authentixx's claims dismissed with prejudice

Authentixx's infringement claims against Lone Star Bank were dismissed with prejudice, meaning those specific claims cannot be re-filed against this defendant. Whether Authentixx received any consideration as part of the settlement is not disclosed in the public record. Authentixx's broader patent portfolio and its ability to assert the same patents against other parties remains unaffected by this dismissal.

Claims dismissed w/ prejudice
Defendant outcome

Lone Star Bank's counterclaims dismissed without prejudice

Lone Star Bank's counterclaims against Authentixx were dismissed without prejudice, meaning the bank retains the theoretical ability to re-assert those claims in future proceedings. In practice, what this means for Lone Star Bank's ongoing exposure depends on terms not disclosed in the available record. Each party bears its own litigation costs under the agreed cost allocation.

Counterclaims w/o prejudice
Commercial implications

Authentication patents remain active enforcement tools

The dismissal does not invalidate US7631191B2 or US10355863B2. Financial institutions and fintech operators offering web-based or electronic content authentication services should note that these patents remain in force and available for future enforcement. The swift resolution here — 96 days — is consistent with targeted assertion strategies that often prioritise speed to settlement over prolonged litigation.

Patents remain enforceable
Legal analysis based on PACER docket records for case 4:23-cv-01275 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffAuthentixx, LLCCompany/Search in Eureka ↗
DefendantLone Star BankCompany/Search in Eureka ↗
Plaintiff counselIsaac Philip RabicoffAttorneyCounsel for Authentixx, LLCSearch in Eureka ↗
Plaintiff law firmRabicoff Law LLCLaw FirmRepresenting Authentixx, LLCSearch in Eureka ↗
Defendant counselJason Dwain MazingoAttorneyCounsel for Lone Star BankSearch in Eureka ↗
Defendant law firmThe Mazingo Firm PCLaw FirmRepresenting Lone Star BankSearch in Eureka ↗
Presiding judgeJudge George C HanksJudgeTexas Southern District CourtSearch in Eureka ↗
R&D signals

R&D signals in the web authentication patent space

Forward-looking patent intelligence derived from the Authentixx v. Lone Star Bank case — covering authentication portfolio activity, sector filing trends, and innovation white space.

Patent portfolio

Authentixx's authentication patent holdings and assertion activity

Authentixx asserted two distinct authentication patents in this case. Understanding the full scope of Authentixx's portfolio — including any additional patents covering authentication workflows, identity verification, or content integrity — is essential for organisations operating in adjacent technology spaces. Portfolio mapping can surface further assertion risk before it reaches litigation.

Portfolio monitoring
Technology landscape

Filing trends in web page and electronic content authentication

The authentication technology domain covered by US7631191B2 and US10355863B2 — web page verification and electronic content authentication — has seen sustained innovation from financial services incumbents and cybersecurity players. Tracking filing trends in this space can identify which organisations are building defensive or offensive positions around authentication methods relevant to digital banking.

Filing trend analysis
Competitive IP position

Lone Star Bank's patent posture in digital banking technology

As a defendant in an authentication patent action, Lone Star Bank's own IP position in digital banking and security technology is relevant context. Understanding whether community banks and regional financial institutions hold defensive IP in authentication or rely on third-party technology informs risk assessments for similar assertion scenarios across the sector.

Defensive IP posture
White space opportunity

Adjacent innovation opportunities near authentication claim scope

The claims of US7631191B2 and US10355863B2 target web page and electronic content authentication as systems and methods. Adjacent innovation areas — including behavioural authentication, cryptographic content verification, and AI-driven fraud detection — may represent white space where new filings could differentiate from existing claim scope and reduce future infringement exposure.

Innovation white space
Related litigation

Similar web authentication patent cases in S.D. Texas and beyond

Explore comparable patent infringement actions involving web page and electronic content authentication asserted in the Southern District of Texas and other federal courts.

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Authentixx, LLC patent enforcement history, Texas Southern District Court case history, Authentixx, LLC's full IP portfolio, and comparable case analysis
Authentication patent casesS.D. Texas IP actionsBanking sector patent suitsRule 41 dismissal outcomes
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Strategic implications

What this case signals for the web authentication IP landscape

A 96-day resolution suggests efficient assertion strategy. Authentication patents targeting financial services warrant close monitoring.

Web authentication patents present real exposure for financial institutions

US7631191B2 and US10355863B2 cover foundational web page and electronic content authentication methods widely deployed across banking platforms. Financial institutions operating customer-facing digital authentication systems should assess their FTO position against these patents, particularly given the speed of this case's resolution.

Early settlement signals credible infringement theory — or risk calculus

A 96-day case lifecycle — from filing to dismissal — is consistent with either a credible infringement read that motivated early settlement, or a defendant risk-calculus favouring rapid exit over prolonged defence costs. Neither explanation is confirmed by the public record. IP counsel should evaluate both possibilities when assessing similar assertion patterns.

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Authentixx filing patternsAuthentication patent claim scopeBanking sector FTO exposure
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Frequently asked questions

Authentixx v Lone — key questions answered

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Track authentication patent enforcement before it reaches your door

PatSnap Eureka lets IP and R&D teams run FTO analysis against active authentication patents and monitor new assertion activity in the financial services space. Stay ahead of enforcement before litigation is filed.

Disclaimer

This page is compiled from public court dockets and third-party patent and litigation data via PatSnap Eureka, and is provided for general informational purposes only. The information shown — including party names, patent and application numbers, dates, case status, outcomes, and any analysis — may be incomplete, may not reflect the most recent filings or legal status, and may contain errors or omissions. Verify all details against official court records (for example, PACER) and the relevant patent office before relying on them.

Nothing on this page constitutes legal advice or a legal opinion on the validity, infringement, enforceability, or scope of any patent or case, and no attorney‑client relationship is created by its use. Any description of an outcome (such as a dismissal, settlement, or consent judgment) is a general summary, not a legal determination. All patents, trademarks, and company or law‑firm names are the property of their respective owners. PatSnap makes no warranty as to the accuracy or completeness of this content and disclaims, to the fullest extent permitted by law, all liability for reliance on it. For advice on a specific matter, consult qualified legal counsel.

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