Federal Circuit Upholds PTAB Rulings in USAA PTAB $218M EDTX Suit

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USAA PTAB $218M EDTX suit

In a significant ruling Monday, a Federal Circuit panel upheld two Patent Trial and Appeal Board (PTAB) decisions that invalidated claims in two patents held by USAA, one of which underpinned a $218.45 million jury verdict against PNC Bank in a patent infringement case in the Eastern District of Texas.

The nonprecedential decision, authored by U.S. Circuit Judge Sharon Prost, leaves intact the PTAB’s findings from two years ago, which nullified claims in U.S. Patent Nos. 8,977,571 and 8,699,779. The patents cover mobile check deposit technology, a development at the heart of USAA’s legal battles against multiple financial institutions.

Federal Circuit Rejects USAA’s Inconsistency Argument

USAA had argued that the PTAB’s rulings were inconsistent with earlier decisions in petitions brought by Wells Fargo, which previously faced similar allegations but settled with USAA. However, the panel dismissed this claim, siding with the PTAB.

“We agree with the board and thus reject USAA’s argument that the board erred in issuing inconsistent [inter partes review] decisions without rational explanation,” Judge Prost wrote.