USAA and Mitek Systems settled a two-and-a-half year-old dispute over who invented the technology for mobile check deposit, with both companies' patents remaining intact and neither side paying the other.
Each party agreed to dismiss its remaining claims against the other under the settlement disclosed Wednesday.
"We're very pleased with the outcome," Jim DeBello, Mitek Systems' CEO, said Thursday evening. The number of financial institutions that have signed up for Mitek's mobile deposit technology has grown from 300 to 2,500, he said.
USAA declined to comment beyond the press release it issued, which stated the same basic facts as Mitek's.
Despite the laying down of swords in this case, Mitek vowed to vigorously defend its eight patents. It has a pending lawsuit against Top Image Systems for patent infringement, for which both parties are preparing for a June 2015 trial. They could settle in the meantime.
"We've spent years, if not decades perfecting the imaging technology," DeBello said. "We've spent several years working with the U.S. Patent office to secure protection for our inventions. It's our duty to our shareholders and company to protect those claims. We'd rather focus on innovation and new products rather than legal issues."
Mitek's patents include algorithms and processes for capturing a check image, correcting it for accuracy and extracting data.
Can any vendor offer mobile check deposit without infringing on Mitek's patents?
"I don't know the answer to that," DeBello said. "We'll have to wait and gauge that."