Bank of America and USAA sign cross-patent deal

Bank of America Corporation and United Services Automobile Association have announced a new agreement granting each entity access to the full portfolio of patents held by the other. The firms confirmed the arrangement on Tuesday, marking a significant shift in their previously adversarial relationship regarding intellectual property rights.

The partnership connects one of the most prolific patent holders within the financial sector with an organisation known for its aggressive protection of proprietary technology. For several years prior to this announcement, USAA had frequently threatened legal action or initiated lawsuits against banks accused of infringing upon its patents related to remote deposit capture systems. The San Antonio-based insurer initially sent warning letters in 2017 to one hundred banking institutions alleging violations involving a portfolio of 130 mobile deposit patents.

Historically, USAA has pursued litigation when licensing offers were not accepted. In previous years, the firm secured two nine-figure judgments against Wells Fargo and obtained a verdict worth $218.5 million from PNC Bank, although that latter ruling was later overturned by an appellate court in 2019. Legal disputes continued into early 2025 with separate actions taken against Fifth Third Bancorp and Regions Financial Corporation.

Conversely, Bank of America has consistently highlighted its extensive patent holdings through regular press releases. As of March 2024, the Charlotte-based bank reported a total count of approximately 6,600 patents, representing an increase of nearly seventy per cent over the preceding five-year period. David Marx, an executive responsible for business management and controls at Bank of America, stated that their corporate culture empowers staff to develop innovative solutions for clients. He noted that this agreement facilitates the application of innovations from both organisations in ways intended to benefit customers and drive progress across the wider financial services industry.

This cross-licensing arrangement appears to be the first two-way patent deal USAA has concluded with a peer institution, although it is not their initial attempt at such an accord. Previously, Truist Financial signed a licensing agreement in October 2023 following a lawsuit, while Discover also entered into similar terms that same year to avoid court proceedings. First Citizens Bank & Trust subsequently reached a comparable settlement in October 2024.

Mike Chaparro, investments principal at USAA, remarked that the technologies developed have enhanced security and convenience for members through continued innovation. He expressed anticipation for future collaborations with other banks and credit unions to establish mutually beneficial licensing agreements similar to those achieved with Bank of America. It remains unclear whether either party made a financial payment as part of this specific deal.

The origins of USAA’s patent portfolio date back to the early 2000s, when it collaborated with identity verification software firm Mitek on remote deposit capture technology designed for military personnel stationed internationally or in combat zones. Following a falling out between the two entities and subsequent legal battles over rights and licensing, they settled their differences in 2014 while retaining their respective patents.

The agreement represents a notable evolution from years of litigation to cooperation, potentially setting a precedent for other financial institutions facing similar intellectual property disputes.