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Dynapass IP Holdings v. East West Bancorp — Patent Dismissal | PatSnap
Patent Litigation

Dynapass IP Holdings v. East West Bancorp — Dismissed With Prejudice

Dynapass IP Holdings LLC filed a patent infringement suit against East West Bancorp and East West Bank in the Eastern District of Texas, asserting a personal communication device authentication patent. The parties jointly moved to dismiss with prejudice after just 109 days, with each side bearing its own costs.

Resolution time
109days
109 days — from filing to dismissal in E.D. Texas
Patents asserted
1
US6993658B1 — personal communication device user authentication
Outcome
Dismissed with Prejudice
Joint motion granted; claims extinguished with prejudice, each party bears own costs
Cost ruling
Each Side's Own Costs
Court ordered each party to bear its own costs, expenses, and attorneys' fees
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

A fast-tracked authentication patent dispute ends bilaterally in East Texas

On 20 February 2023, Dynapass IP Holdings LLC filed a patent infringement action against East West Bancorp, Inc. and its subsidiary East West Bank in the U.S. District Court for the Eastern District of Texas (Case No. 2:23-cv-00065). The suit centred on US6993658B1 (application no. US09/519829), a patent covering the use of personal communication devices for user authentication — technology directly relevant to digital banking access controls.

The case closed on 9 June 2023, just 109 days after filing. The parties filed a Joint Motion to Dismiss representing that they had resolved Plaintiff's claims and requesting dismissal with prejudice. The court granted the motion, dismissing all of Dynapass's claims with prejudice and ordering each party to bear its own costs, expenses, and attorneys' fees. All pending requests for relief not explicitly granted were denied as moot. The recorded basis of termination is Dismissed with Prejudice; the docket order states the parties 'have resolved Plaintiff's claims for relief against Defendants,' though the specific terms of that resolution are not disclosed in the available record.

A resolution within 109 days is notably fast for patent litigation in the Eastern District of Texas, suggesting the parties reached agreement well before any substantive claim construction or merits proceedings. What drove the resolution — whether licensing, design-around, or another commercial arrangement — is not disclosed in the public record. The court retained the lead case as open while closing this member case, indicating this action may form part of a broader multi-defendant campaign by Dynapass.

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Case at a glance
CourtTexas Eastern District Court
JudgeN/A
FiledFebruary 20, 2023
ClosedJune 9, 2023
Duration109 days
OutcomeDismissed with Prejudice
Verdict causeInfringement Action
BasisDismissed with Prejudice
Prior Art Intelligence
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Case timeline

Filing to Dismissed with Prejudice in 109 days

109 days — from filing to dismissal in E.D. Texas

Case timeline: Complaint filed FEB 20 2023 — 109 days total Horizontal timeline showing the three key events in Dynapass IP Holdings, LLC v East West Bancorp, Inc. from filing to resolution. Source: PACER, Texas Eastern District Court. FEB 20 2023 Complaint filed Pre-trial proceedings JUN 9 2023 Dismissed with Prejudice 109 DAYS TOTAL
Patent at issue

US6993658B1 — Personal Communication Device User Authentication

Publication No.US6993658B1
Application No.US09/519829
Patent details
ProductUse of personal communication devices for user authentication
Cited in actionFebruary 20, 2023
Technical brief · sourced from PatSnap patent database
Patent figurePatent figure
Representative claim (1 of 2 independent)
1. A method of authenticating a user on a first secure computer network, the user having a user account on said first secure computer network, the method comprising: associating the user with a personal communication device possessed by the user, said personal communication device in communication over a second network, wherein said second network is a cell phone network different from the first secure computer network; receiving a request from the user for a token via the personal communication device, over the second network; generating a new password for said first secure computer network based at least upon t…
Technical background
BACKGROUND OF THE INVENTION 1. Field of the Invention This invention relates generally to the authentication of users of secure systems and, more particularly, the invention relates to a system through which user tokens required for user authentication are supplied through personal communication devices such as mobile telephones and pagers. 2. Description of the Related Art Secure systems have traditionally utilized a user ID and password pair to identify and authenticate system users. Operating systems that contro…
Patent family
4 family members across 3 jurisdictions (AU, WO, US)
PatSnap Eureka · FTO Search Agent
Should you run an FTO analysis against US6993658B1?

Any organisation deploying personal communication devices as part of a user authentication workflow — including mobile banking apps, SMS-based OTP systems, push notification authentication, and device-binding login protocols — should assess exposure to US6993658B1. The patent's claim scope, combined with active enforcement activity by Dynapass in E.D. Texas, makes it a priority for FTO review by financial institutions, fintech platform providers, and enterprise identity solution vendors.

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Official verdict

Official order — verbatim text

Before the Court is the Joint Motion to Dismiss (the “Motion”) filed by Plaintiff Dynapass IP Holdings LLC (“Plaintiff”) and Defendants East West Bancorp, Inc. and East West Bank (“Defendants”). (Dkt. No. 53.) In the Motion, the parties represent that they have resolved Plaintiff's claims for relief against Defendants in this case and request dismissal of the abovecaptioned action with prejudice. (Id. at 1.) Having considered the Motion, the Court finds that it should be and hereby is GRANTED. Accordingly, Plaintiff's claims for relief against Defendants in the above-captioned case are DISMISSED WITH PREJUDICE. Each party is to bear its own costs, expenses, and attorneys’ fees. All pending requests for relief in the above-captioned case between Plaintiff and Defendants not explicitly granted herein are DENIED AS MOOT. The Clerk of Court is directed to CLOSE the above-captioned member case and MAINTAIN AS OPEN the lead case.
Source: PACER Docket, Case 2:23-cv-00065, Texas Eastern District Court

The court's order grants the parties' Joint Motion to Dismiss in its entirety, dismissing all of Dynapass's claims against both East West Bancorp and East West Bank with prejudice and denying all remaining pending relief as moot. The explicit with-prejudice designation is legally significant: it operates as a final judgment on the merits, permanently barring re-litigation of these specific claims between these parties. The cost-neutrality order — each party to bear its own fees — means no prevailing-party fee award was made under 35 U.S.C. § 285.

PACER case 2:23-cv-00065 · Public docket record Explore in Eureka ↗
Dismissal terms

Dismissed with prejudice: what the agreed resolution means for both parties

Legal mechanism

Dismissal with prejudice ends all claims permanently

A dismissal with prejudice is a final adjudication on the merits — Dynapass cannot re-file the same infringement claims against East West Bancorp or East West Bank on US6993658B1 arising from the same conduct. The joint motion was filed by both parties, indicating a mutually agreed exit. The court granted it in full and denied all other pending relief as moot. The specific terms underlying the parties' resolution are not disclosed in the available record.

Claims permanently extinguished
Patent holder outcome

Dynapass forecloses future action against these defendants

By agreeing to dismissal with prejudice, Dynapass IP Holdings surrenders the right to pursue East West Bancorp and East West Bank again on these claims. For a patent assertion entity, this typically signals the dispute reached a commercial conclusion acceptable to the plaintiff. However, US6993658B1 remains in force as an asset and the lead case remaining open suggests Dynapass may continue asserting it against other defendants.

Patent remains enforceable elsewhere
Defendant outcome

East West Bank secures permanent bar on these specific claims

East West Bancorp and East West Bank obtain a permanent bar against Dynapass re-asserting the same US6993658B1 claims arising from the same accused conduct. The cost-sharing order — each party bears its own fees — means no fee-shifting occurred in either direction. The defendants engaged Locke Lord LLP, a firm with substantial patent litigation experience, suggesting they mounted an active defence before resolution was reached.

No fee-shifting ordered
Commercial implications

Authentication patent risk remains live for other financial institutions

The rapid resolution and the court's instruction to keep the lead case open suggest this is one action in a wider enforcement campaign around US6993658B1. Banks and fintech companies deploying personal communication devices for user authentication — a near-universal feature in digital banking — should assess their exposure to this patent. The 109-day duration and mutual cost-bearing suggest commercial resolution without a validity or non-infringement finding on the merits.

Broader campaign risk for banking sector
Legal analysis based on PACER docket records for case 2:23-cv-00065 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffDynapass IP Holdings, LLCCompany/Search in Eureka ↗
DefendantEast West Bancorp, Inc.Company/Search in Eureka ↗
Co-DefendantEast West BankCompanySearch in Eureka ↗
Plaintiff counselFred Irvin WilliamsAttorneyCounsel for Dynapass IP Holdings, LLCSearch in Eureka ↗
Plaintiff law firmWilliams, Simons & Landis PLLC (Austin)Law FirmRepresenting Dynapass IP Holdings, LLCSearch in Eureka ↗
Defendant counselCharles S. BakerAttorneyCounsel for East West Bancorp, Inc.Search in Eureka ↗
Defendant counselKent HofmannAttorneyCounsel for East West Bancorp, Inc.Search in Eureka ↗
Defendant counselRyan Edward DornbergerAttorneyCounsel for East West Bancorp, Inc.Search in Eureka ↗
Defendant law firmLocke Lord LLPLaw FirmRepresenting East West Bancorp, Inc.Search in Eureka ↗
Defendant law firmLocke Lord, LLP (Houston)Law FirmRepresenting East West Bancorp, Inc.Search in Eureka ↗
Presiding judgeJudge N/AJudgeTexas Eastern District CourtSearch in Eureka ↗
R&D signals

R&D signals in the personal device authentication patent space

Forward-looking patent and innovation intelligence derived from Dynapass's assertion of US6993658B1 against East West Bank in the digital authentication domain.

Patent portfolio

Dynapass's authentication patent holdings beyond US6993658B1

Dynapass IP Holdings is a patent assertion entity whose enforcement activity around US6993658B1 suggests a portfolio strategy in personal device authentication. Mapping Dynapass's full patent holdings and related application family members reveals the breadth of potential claim coverage and identifies whether continuation or continuation-in-part applications extend the original priority date into newer authentication architectures.

NPE portfolio mapping
Technology landscape

Filing trends in device-based user authentication for banking

Personal device authentication — encompassing push notifications, FIDO2/WebAuthn standards, biometric device binding, and OTP protocols — is one of the most actively filed technology spaces in fintech IP. Tracking filing trends by financial institutions, identity platform vendors, and device OEMs in this space reveals where the next generation of enforceable patents is being built and which architectures are currently white space.

Active filing landscape
Defendant IP posture

East West Bank's own patent activity in digital identity

East West Bancorp's decision to engage Locke Lord LLP with a three-attorney team suggests active defence preparation. Examining East West Bank's own patent filings and any defensive publications in authentication and digital banking reveals whether the institution has built internal IP assets that could support a design-around, cross-licence posture, or invalidity argument in future disputes with assertion entities in this domain.

Defendant defensive IP
White space

Innovation gaps adjacent to personal device authentication claims

The claims of US6993658B1 — filed under application US09/519829 — represent early-generation device authentication architecture. Adjacent white-space areas not covered by this patent's priority date include behavioural biometrics, continuous authentication, decentralised identity (DID), and hardware-attested device credentials. Organisations investing in next-generation identity verification can identify patentable ground that lies outside the original claim scope.

Adjacent innovation opportunity
Related litigation

Similar authentication patent cases in E.D. Texas and related courts

Explore patent infringement cases involving personal device authentication and identity verification technology filed in the Eastern District of Texas and comparable venues.

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Dynapass IP Holdings, LLC patent enforcement history, Texas Eastern District Court case history, Dynapass IP Holdings, LLC's full IP portfolio, and comparable case analysis
Dynapass v. other banksAuthentication NPE casesE.D. Texas fintech suitsDevice identity patent cases
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Strategic implications

What this case signals for the authentication patent IP landscape

A 109-day resolution with no public terms is a hallmark of NPE enforcement strategy — fast pressure, low visibility, and portfolio-level risk for financial services.

US6993658B1 remains enforceable — map your authentication stack now

The dismissal with prejudice is specific to East West Bancorp. Dynapass's lead case remaining open signals continued enforcement activity. Any institution using personal device-based authentication should assess whether their implementation falls within the claims of US6993658B1 before a demand letter arrives.

109-day lifecycle signals pre-litigation commercial resolution pressure

Cases resolved this quickly in E.D. Texas rarely reach claim construction. The mutual cost-bearing order and joint motion suggest Dynapass applied early settlement pressure. Financial institutions without a pre-existing FTO or validity analysis on this patent are exposed to the same playbook.

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Multi-defendant campaign mapIPR viability analysisDynapass portfolio exposure
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Frequently asked questions

Dynapass v East — key questions answered

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Protect your authentication stack from patent assertion risk

With the lead case still open and US6993658B1 in force, financial institutions and fintech firms should run a proactive FTO before receiving a demand letter. PatSnap Eureka maps patent claim coverage, surfaces prior art, and monitors enforcement campaigns in real time.

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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