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USAA v. PNC Bank: $218M Mobile Deposit Patent Verdict | PatSnap
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Case ID2:21-cv-00110
FiledMar 2021
ClosedJun 2024
Patent Litigation

USAA v. PNC Bank: $218.45M Jury Verdict for Willful Mobile Deposit Infringement

USAA, holder of foundational mobile remote deposit capture patents, secured a unanimous $218.45 million jury verdict against PNC Bank in the Eastern District of Texas. The jury found willful infringement across four patents and rejected all invalidity defenses — one of the largest patent verdicts in financial technology history.

Resolution time
1167days
1,167-day case duration — from filing to final judgment in E.D. Texas
Patents asserted
2
US10013681B1, US10013605B1 and two further patents — mobile remote deposit capture technology
Outcome
Judgment on the merits for Plaintiff
Unanimous jury verdict; willful infringement found; all asserted claims held valid
Cost ruling
Costs to USAA
USAA awarded costs as prevailing party; damages enhancement denied despite willfulness
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

A $218M Verdict That Redrew Mobile Banking IP Risk

United Services Automobile Association (USAA), a financial services group and prolific holder of mobile deposit patents, filed suit against PNC Bank National Association on March 31, 2021, in the Eastern District of Texas before Judge Rodney Gilstrap. USAA asserted four patents — the ‘432, ‘681, ‘605, and ‘571 patents — covering its Deposit@Mobile® technology against PNC’s competing mobile deposit system, alleging willful infringement of specific claims across all four patents.

A jury trial commenced on May 9, 2022, and after five days the jury returned a unanimous verdict: PNC had willfully infringed all asserted claims, none of those claims were invalid, and USAA was owed $218,450,000 as a reasonable royalty. The court subsequently rejected PNC’s equitable defenses of prosecution history estoppel and unclean hands. Final judgment entered June 10, 2024, confirming the full $218.45M award plus pre- and post-judgment interest. Although the jury found willfulness, Judge Gilstrap declined to enhance damages, concluding the conduct did not rise to the ‘egregious’ threshold required under Halo Electronics.

The gap between the May 2022 verdict and the June 2024 final judgment — over two years — suggests protracted post-trial motion practice and coordination with a parallel USAA-PNC case (No. 2:21-cv-246). The public record does not disclose a settlement component or any royalty-bearing license negotiated post-verdict. USAA’s systematic campaign against major retail banks over mobile deposit IP, combined with a nearly $220M baseline damages award, signals that this portfolio continues to carry substantial enforcement leverage across the banking sector.

Case at a glance
Case no.2:21-cv-00110
CourtTexas Eastern
JudgeRodney Gilstrap
FiledMarch 31, 2021
ClosedJune 10, 2024
Duration1167 days
OutcomeJudgment on the merits for Plaintiff
Verdict causeInfringement Action
BasisJudgment on the merits for Plaintiff
Prior Art Intelligence
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Case data sourced from PACER / Texas Eastern District Court via PatSnap Eureka Litigation Intelligence Explore similar cases ↗
Case timeline

Filing to Judgment on the merits for Plaintiff in 1167 days

1,167-day case duration — from filing to final judgment in E.D. Texas

Case timeline: Complaint filed MAR 31 2021, NOV–DEC — 1167 days total Horizontal timeline showing the three key events in United Service Automobile Association v PNC Bank National Association from filing to resolution. Source: PACER, Texas Eastern District Court. MAR 31 2021 Complaint filed Pre-trial proceedings JUN 10 2024 Judgment on the merits for Plaintiff 1167 DAYS TOTAL
Court ruling

Jury verdict and final judgment: what the $218.45M award means for both parties

Legal mechanism

Unanimous jury verdict confirmed by court — willfulness found, enhancement denied

The jury returned a unanimous verdict on May 13, 2022, finding infringement of all asserted claims across four patents and awarding $218.45M as a reasonable royalty. Critically, the jury also found willfulness — a prerequisite for enhanced damages under 35 U.S.C. § 284. However, Judge Gilstrap exercised his discretion and declined to enhance the award, applying the Halo Electronics ‘egregious conduct’ standard and concluding the circumstances did not warrant multiplication of compensatory damages.

Judgment on the merits — plaintiff
Patent holder outcome

USAA secures $218.45M baseline plus pre- and post-judgment interest

USAA prevails on all infringement counts, recovers costs as the prevailing party, and receives prejudgment interest compounded quarterly at the 5-year Treasury Bill rate from the date of infringement — a sum that materially increases the total recovery. All four patent families survive invalidity challenge, reinforcing USAA’s ability to enforce the same portfolio against other banking defendants in parallel or future proceedings.

Portfolio validity confirmed
Defendant outcome

PNC faces $218.45M liability with equitable defenses fully exhausted

PNC’s equitable defenses — prosecution history estoppel and unclean hands — were rejected by the court on the papers after both parties waived a full bench trial. PNC must also bear USAA’s costs and accruing post-judgment interest. With all four patents held valid and infringed, PNC’s exposure in the parallel Case No. 2:21-cv-246 against USAA is materially elevated. Appeal remains the primary avenue for relief, though the verdict record is extensive.

All invalidity defenses rejected
Commercial implications

A nine-figure baseline raises the stakes for every mobile deposit provider

The $218.45M reasonable royalty award establishes a high-water mark for USAA’s licensing demands across the U.S. banking sector. Financial institutions offering mobile remote deposit capture features — whether proprietary or third-party-powered — face heightened FTO risk from USAA’s patent portfolio. The court’s willfulness finding, even without enhancement, signals that continued operation after notice will be weighed heavily by future juries. Competitors and fintech platforms should audit their mobile deposit implementations against the asserted claim sets.

High FTO risk for RDC platforms
Legal analysis based on PACER docket records for case 2:21-cv-00110 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffUnited Service Automobile AssociationIndividualFinancial services group and mobile deposit pioneer — holder of US10013681B1 and related patentsSearch in Eureka ↗
DefendantPNC Bank National AssociationCompanyPNC Bank National Association — major U.S. retail bank deploying mobile check deposit servicesSearch in Eureka ↗
Plaintiff counselJason G. SheasbyAttorneyCounsel for United Service Automobile AssociationSearch in Eureka ↗
Plaintiff counselJonathan Michael LindsayAttorneyCounsel for United Service Automobile AssociationSearch in Eureka ↗
Plaintiff counselLisa Sharrock GlasserAttorneyCounsel for United Service Automobile AssociationSearch in Eureka ↗
Plaintiff counselRebecca L. CarsonAttorneyCounsel for United Service Automobile AssociationSearch in Eureka ↗
Plaintiff counselRobert Christopher BuntAttorneyCounsel for United Service Automobile AssociationSearch in Eureka ↗
Plaintiff law firmIrell & Manella LLP (Newport Beach)Law FirmRepresenting United Service Automobile AssociationSearch in Eureka ↗
Plaintiff law firmIrell & Manella LLP (Los Angeles)Law FirmRepresenting United Service Automobile AssociationSearch in Eureka ↗
Plaintiff law firmParker Bunt & Ainsworth PCLaw FirmRepresenting United Service Automobile AssociationSearch in Eureka ↗
Defendant counselAdam R. LawtonAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselBlanca F YoungAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselEric P. TuttleAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselGregory P. StoneAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselMarianna Y MaoAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselMelissa Richards SmithAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselPeter A DetreAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselPeter E. GratzingerAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselSarah S LeeAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant counselVincent Y LingAttorneyCounsel for PNC Bank National AssociationSearch in Eureka ↗
Defendant law firmGillam & Smith, LLPLaw FirmRepresenting PNC Bank National AssociationSearch in Eureka ↗
Defendant law firmMunger Tolles & Olson – San FranciscoLaw FirmRepresenting PNC Bank National AssociationSearch in Eureka ↗
Defendant law firmMunger Tolles & Olson LLP (LA)Law FirmRepresenting PNC Bank National AssociationSearch in Eureka ↗
Defendant law firmWilson Sonsini Goodrich & Rosati, PC – SeattleLaw FirmRepresenting PNC Bank National AssociationSearch in Eureka ↗
Presiding judgeJudge Rodney GilstrapJudgeTexas Eastern District CourtSearch in Eureka ↗
Official verdict

Official order — verbatim text

“A jury trial commenced in the above-captioned case on May 9, 2022, and on May 13, 2022, the jury reached and returned its unanimous verdict finding that Defendant PNC Bank, N.A. (“PNC”) infringed at least one of Claims 1, 3, 5, and 21 of the ʼ432 Patent; Claims 12, 13, 22, 26, and 30 of the ’681 Patent; Claims 12, 13 and 22 of the ’605 Patent; and Claims 1, 2, 9, 12, and 13 of the ’571 Patent (the “Asserted Claims”); that such infringement was willful; that none of the Asserted Claims were invalid; and that Plaintiff United Services Automobile Association (“USAA”) is owed a reasonable royalty of $218,450,000.00 for PNC’s infringement. (Dkt. No. 710). After the trial, the parties agreed to forego a bench trial on PNC’s asserted equitable defenses. The parties agreed that said defenses should be resolved by the Court on the papers in order to facilitate the Court’s resolution thereof before trial begins in Case No. 2:21-cv-246 between these parties. On August 19, 2022, the Court issued Findings of Fact and Conclusions of Law, wherein the Court held that PNC failed to show that the equitable defenses of prosecution history estoppel and unclean hands should displace the jury’s verdict in this case. (Dkt. No. 744) Case 2:20-cv-00319-JRG-RSP Document 745 Filed 08/19/22 Page 1 of 3 PageID #: 45576 Case 2:21-cv-00110-JRG Document 52 Filed 06/10/24 Page 1 of 3 PageID #: 2060 2 Pursuant to Rule 58 of the Federal Rules of Civil Procedure, and in accordance with the jury’s unanimous verdict and the entirety of the record, the Court hereby ORDERS and ENTERS JUDGMENT as follows: 1. PNC has infringed at least one of the Asserted Claims; 2. The Asserted Claims are not invalid; 3. PNC’s infringement was willful; 4. USAA is hereby awarded damages from and against PNC and shall accordingly have and recover from PNC the sum of $218,450,000.00 U.S. Dollars as a reasonable royalty for PNC’s infringement; 5. Notwithstanding the jury’s finding of willfulness, the Court having considered the totality of the circumstances together with the added material benefit of having presided throughout the jury trial and having seen the same evidence and heard the same arguments as the jury, and mindful that enhancement is generally reserved for “egregious cases of culpable behavior,”1 concludes that enhancement of the compensatory award herein is not warranted under 35 U.S.C. § 284 and consequently, the Court elects not to enhance the damages awarded herein; 6. Pursuant to 35 U.S.C. § 284 and Supreme Court guidance that “prejudgment interest shall ordinarily be awarded absent some justification for withholding such an award,”2 the Court awards to USAA from PNC pre-judgment interest applicable to all sums awarded herein, calculated at the 5-year U.S. Treasury Bill rate, 1 Halo Electronics, Inc. v. Pulse Electronics, Inc., 136 S.Ct. 1923, 1934 (2016). 2 General Motors Corp. v. Devex Corp., 461 U.S. 648, 657 (1983). Case 2:20-cv-00319-JRG-RSP Document 745 Filed 08/19/22 Page 2 of 3 PageID #: 45577 Case 2:21-cv-00110-JRG Document 52 Filed 06/10/24 Page 2 of 3 PageID #: 2061 3 compounded quarterly, from the date of infringement through the date of entry of this Judgment;3 and 7. Pursuant to 28 U.S.C. § 1961, the Court awards to USAA from PNC post-judgment interest applicable to all sums awarded herein, at the statutory rate, from the date of entry of this Judgment until paid. 8. Pursuant to Federal Rule of Civil Procedure 54(d), Local Rule CV-54, and 28 U.S.C. § 1920, USAA is the prevailing party in this case and shall recover its costs from PNC. USAA is directed to file its proposed Bill of Costs. All other requests for relief now pending and requested by either party but not specifically addressed herein are DENIED.”
Source: PACER Docket, Case 2:21-cv-00110, Texas Eastern District Court

The verdict language is notable for its precision: the jury found infringement of ‘at least one’ of the asserted claims across all four patents, meaning USAA’s infringement case succeeded even if not every individual claim was proven. The court’s entry of judgment under Rule 58 — delayed until June 2024, over two years post-verdict — reflects the complexity of post-trial proceedings and coordination with the parallel USAA-PNC action. The rejection of prosecution history estoppel and unclean hands removes PNC’s most viable equitable shields and leaves appeal as the primary path to relief.

PACER case 2:21-cv-00110 · Public docket record Explore in Eureka ↗
Patent at issue

US10013681B1 & US10013605B1 — Mobile Remote Deposit Capture Technology

Publication No.US10013681B1
Application No.US15/663305
Patent details
Productmobile remote deposit capture systems and methods using smartphone imaging
Cited in actionMarch 31, 2021

Publication No.US10013605B1
Application No.US15/663284
Patent details
Productmobile check deposit processing methods and image quality systems
Cited in actionMarch 31, 2021

US10013681B1 and US10013605B1 are part of USAA’s foundational patent portfolio covering mobile remote deposit capture (mRDC) — the technology that allows consumers to photograph checks with a smartphone and deposit them electronically. Both patents issued as granted patents with application numbers US15/663305 and US15/663284 respectively. The asserted claims span systems and methods for mobile image capture, transmission, and processing of negotiable instruments, a technical domain USAA pioneered through its Deposit@Mobile® service.

USAA has systematically asserted this patent family against major U.S. retail banks including Wells Fargo and PNC in multiple waves of litigation. The Eastern District of Texas has consistently upheld the portfolio’s validity, creating a strong enforcement precedent. For competing banks and fintech platforms, the confirmed scope of these patents covers core mRDC workflows — making design-arounds complex and licensing negotiation a near-inevitability for any institution offering smartphone-based check deposit. The portfolio’s breadth across both system claims and method claims limits the effectiveness of partial redesigns.

Patent data sourced from USPTO via PatSnap Eureka patent database Search patent records in Eureka ↗
Freedom to operate

Should you run an FTO against US10013681B1 and US10013605B1?

Any financial institution, neobank, or fintech platform offering mobile remote deposit capture functionality should treat USAA’s patent family as a primary FTO priority. The four patents asserted in this case cover both the systems and the methods underpinning standard mRDC implementations. Third-party mobile deposit SDK providers and core banking vendors whose products enable smartphone check imaging for bank clients are also potentially within the enforcement scope. The $218.45M verdict baseline means even a small market share creates material licensing exposure.

PatSnap Eureka’s FTO Search Agent can map your product’s technical implementation against the asserted claim sets of US10013681B1, US10013605B1, and the broader USAA mRDC portfolio — identifying overlap, potential design-around pathways, and prior art candidates that could support an IPR petition. Eureka’s claim chart automation and portfolio landscape tools let your IP team benchmark USAA’s claim scope against your specific mobile deposit architecture before litigation risk materialises.

PatSnap Eureka FTO Search

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Related litigation

Similar Mobile Remote Deposit Capture Patent Cases in E.D. Texas

Cases involving USAA’s mobile deposit patent portfolio and mRDC infringement claims litigated in the Eastern District of Texas before Judge Gilstrap.

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United Service Automobile Association patent enforcement history, Texas Eastern case history, United Service Automobile Association’s full IP portfolio, and comparable case analysis
USAA v. Wells FargoUSAA v. PNC (2:21-cv-246)Other mRDC patent suitsE.D. Texas fintech verdicts
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Strategic implications

What this verdict signals for the mobile banking IP landscape

A $218M willful infringement finding in E.D. Texas reshapes licensing risk for every bank operating mobile deposit services.

USAA’s portfolio has now generated landmark verdicts — audit exposure now

With the ‘681, ‘605, and related patents confirmed valid and infringed by a unanimous jury, any bank or fintech offering remote deposit capture features should treat USAA’s patent family as an active enforcement risk. The reasonable royalty basis of the award means USAA need not prove lost profits — it only needs to establish a hypothetical negotiation baseline, which this verdict now anchors at a very high level.

Willfulness finding without enhancement is a warning signal, not a safe harbour

Judge Gilstrap’s refusal to enhance damages despite a willfulness finding does not make continued infringement safer. Future defendants cannot rely on this outcome as precedent that willfulness is consequence-free. Each case is assessed on its own conduct record, and a different judge or a more egregious fact pattern could result in up to treble damages on a comparably-sized royalty base.

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Frequently asked questions

Association v PNC — key questions answered

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Assess Your Mobile Deposit Patent Exposure Before You’re Served

With a $218M verdict anchoring USAA’s licensing demands, every mRDC provider faces elevated risk. PatSnap Eureka’s FTO and litigation monitoring tools help you map exposure, track new filings, and build a defensible IP strategy before enforcement reaches your door.

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