San Antonio, Texas, January 23, 2026
USAA has petitioned the U.S. Supreme Court to review a decision by the Federal Circuit that invalidated its patents on mobile check deposit technology. This case addresses the patentability of business method patents, particularly under 35 U.S.C. § 101. The Supreme Court’s ruling may set a precedent for future innovations in the financial industry, emphasizing the ongoing debate over patent eligibility.
San Antonio, Texas – USAA Seeks Supreme Court Review of Mobile Check Deposit Patent Dispute
San Antonio, Texas – The United Services Automobile Association (USAA) has petitioned the U.S. Supreme Court to review a Federal Circuit decision that invalidated its patents related to mobile check deposit technology. This move follows a series of legal challenges questioning the patentability of business method patents under 35 U.S.C. § 101.
Background of the Dispute
USAA, a financial services provider primarily serving military members, developed technology enabling customers to deposit checks using mobile devices. The company holds several patents covering this innovation, including U.S. Patent Nos. 8,977,571 and 8,699,779. In 2018, USAA initiated legal action against PNC Bank, alleging infringement of these patents. The district court ruled in favor of USAA, awarding over $200 million in damages. However, PNC appealed, arguing that the patents were invalid under § 101, which excludes abstract ideas from patent eligibility. The Federal Circuit agreed with PNC, stating that the patents merely described the concept of using a mobile device to capture and process a check image—an abstract idea lacking an inventive step. USAA now seeks the Supreme Court’s intervention to resolve this matter.
Implications for the Financial Industry
This case has significant implications for the financial sector, particularly concerning the patentability of business methods. The outcome could influence how financial institutions develop and protect technological innovations. A Supreme Court decision may provide clarity on the standards for patent eligibility in the context of business methods and software-related inventions.
Conclusion
USAA’s appeal to the Supreme Court underscores the ongoing debate over the patentability of business methods. The financial industry awaits the Court’s decision, which could set a precedent for future patent disputes involving technological innovations in financial services.
Frequently Asked Questions (FAQ)
What is the main issue in USAA’s Supreme Court petition?
The main issue is whether USAA’s patents related to mobile check deposit technology are valid under 35 U.S.C. § 101, which excludes abstract ideas from patent eligibility.
What was the Federal Circuit’s decision regarding USAA’s patents?
The Federal Circuit invalidated USAA’s patents, stating they were directed to an abstract idea without an inventive step.
How could this case impact the financial industry?
The case could influence how financial institutions develop and protect technological innovations, particularly concerning the patentability of business methods and software-related inventions.
What is the significance of 35 U.S.C. § 101 in this case?
35 U.S.C. § 101 defines the types of inventions that are eligible for patent protection, excluding abstract ideas, laws of nature, and natural phenomena.
What is the next step in this legal process?
The Supreme Court will decide whether to grant certiorari to review the Federal Circuit’s decision, which could lead to a final resolution of the patent dispute.
Key Features of the Case
| Feature | Description |
|---|---|
| Parties Involved | United Services Automobile Association (USAA) and PNC Bank |
| Technology at Issue | Mobile check deposit technology |
| Patent Numbers | U.S. Patent Nos. 8,977,571 and 8,699,779 |
| Legal Basis for Dispute | 35 U.S.C. § 101 – Patent eligibility of abstract ideas |
| Federal Circuit’s Decision | Invalidated USAA’s patents as directed to an abstract idea without an inventive step |
| Potential Industry Impact | Influence on patentability standards for business methods and software-related inventions in the financial sector |
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Author: STAFF HERE SAN ANTONIO WRITER
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