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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`UNITED SERVICES AUTOMOBILE
`ASSOCIATION
`a Texas reciprocal inter-insurance exchange,
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`PNC BANK N.A.
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`Plaintiff,
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`Defendant.
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`Civil Action No. 2:20-cv-00319 JRG
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`JURY TRIAL DEMANDED
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`FIRST AMENDED COMPLAINT
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`v.
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`Plaintiff United Services Automobile Association (“USAA”), by its undersigned counsel,
`for its Complaint against defendant PNC Bank, National Association (“PNC”), states as follows,
`with knowledge as to its own acts, and on information and belief as to the acts of others:
`This lawsuit is brought to address PNC’s use of USAA’s patented technologies
`1.
`that relate to remote check deposit for mobile banking systems. These patented technologies
`enable USAA to connect members of the military and their families across the globe to financial
`services. USAA developed these technologies as part of its mission to improve the financial
`security of its members. In its decades of serving the military community, USAA has worked to
`innovate in serving the needs of its members, including a lifestyle that can make getting to a
`bank branch difficult, particularly if they are out to sea or deployed outside the United States.
`USAA’s innovations and investments are protected by multiple patents issued by the United
`States Patent & Trademark Office. PNC has chosen to use USAA’s patented technologies
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`without permission and to use them for its own commercial gain. This lawsuit seeks remedies for
`PNC’s misconduct.
`THE PARTIES
`II.
`Plaintiff USAA is a reciprocal interinsurance exchange and unincorporated
`2.
`association organized under the laws of the State of Texas having its principal place of business
`at 9800 Fredericksburg Road, San Antonio, Texas 78288. The USAA family of companies is
`dedicated to the financial well-being of members of the military and their families through the
`provision of insurance and banking products and services, and investing services. USAA does
`business in this judicial district, and through its website at www.usaa.com and USAA Mobile
`smartphone applications.
`On information and belief, PNC is a national banking association organized under
`3.
`the laws of the United States of America. PNC does business throughout the United States,
`including in this judicial district.
`JURISDICTION AND VENUE
`III.
`Subject matter jurisdiction is based on 28 U.S.C. § 1338, in that this action arises
`4.
`under federal statute, the patent laws of the United States (35 U.S.C. §§ 1, et seq.).
`The Court has personal jurisdiction over PNC because it has substantial,
`5.
`systematic and continuous contacts with this judicial district. PNC has a regular and established
`place of business in the State of Texas and in the Eastern District of Texas, including operating
`several physical branches in this judicial district, and conducting business with customers
`residing in this judicial district both through its branches and its mobile banking services. PNC
`has committed acts of patent infringement and, as detailed below, contributed to or induced acts
`of patent infringement by others in this judicial district. PNC is registered to do business in
`Texas and maintains an agent authorized to receive service of process within Texas.
`Venue is proper under 28 U.S.C. § 1400(b) because PNC has committed acts of
`6.
`infringement and maintains a regular and established place of business in this judicial district.
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` PNC occupies several permanent, physical places within this District from which
`7.
`PNC carries out its business. For example, PNC has physical “solution center” branches in the
`following locations in this District: (1) Allen Solution Center, 829B W Stacy Road, Suite 100,
`Allen, Texas 75013; (2) Denton Solution Center, 2310 W. University Drive, #1540, Denton,
`Texas 76201; and (3) Plano Solution Center, 7300 Dallas Pkwy, Suite A140, Plano, Texas
`75024. PNC conducts business from these solution centers using physical equipment and
`employees located within the District. For example, on information and belief, each of these
`solution center branches allows customers to obtain certain banking services from PNC via in-
`person appointments with PNC employees. In addition, each of these locations offers customers
`the opportunity to conduct banking business via video tellers and/or traditional ATM machines.
`As a further example, PNC maintains several ATM locations in this district.
`BACKGROUND ALLEGATIONS
`IV.
`USAA’s Investments And Pioneering Innovations
`This is an action for infringement of patents awarded to research and development
`8.
`teams at USAA for their years of work developing and improving technologies that, among other
`things, allow banking customers to easily and conveniently deposit paper checks into their
`accounts from their smartphones – wherever they might be in the world.
`USAA has been serving present and former members of the U.S. military and
`9.
`their families since 1922 and is one of America’s leading insurance and financial services
`companies. USAA offers its members a wide range of insurance and banking products and
`services, and investing services designed to help them meet their financial security needs.
`Headquartered in San Antonio, Texas, with offices in several states and Europe, USAA employs
`more than 33,000 people to provide for the financial well-being of over 12 million members.
`Unlike traditional banks, which usually maintain a network of brick-and-mortar
`10.
`bank branches or ATMs for customers to use, USAA typically interacts with its members
`remotely, either by mail, telephone, or with increasing frequency through its usaa.com website or
`USAA’s mobile application. USAA’s online and mobile presence is critical to its members’
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`well-being, particularly as USAA’s military members are often stationed in distant locations
`around the world with limited access to traditional banking services.
`Driven by its mission to serve its members, starting in or around 2004, USAA
`11.
`invested substantial research and development resources into developing and implementing
`systems and methods that would provide USAA’s members with a real-time capability to deposit
`a financial instrument from just about anywhere. These pioneering systems and methods resulted
`in a prototype developed by 2005, and the launch in 2006 of a consumer device remote check
`deposit system under the name Deposit@Home®. In 2009, USAA launched an application
`branded as Deposit@Mobile®, which today is available and used worldwide on devices such as
`iPhones, iPads and Android-based mobile devices. For the first time in banking history, USAA’s
`patented systems allowed customers to deposit checks anytime, anywhere by taking photographs
`with consumer electronics that consumers actually own or can easily acquire, such as a mobile
`phone’s digital camera.
`To date, USAA has invested many millions of dollars and thousands of employee-
`12.
`hours in the development and implementation of its mobile deposit technologies.
`The Asserted USAA Patents
`This action involves four of the patents that protect USAA’s investments in its
`13.
`mobile deposit technologies: U.S. Patent Nos. 10,482,432 (the “’432 Patent”), 10,621,559 (the
`“’559 Patent”), 8,977,571 (the “’571 Patent”), and 8,699,779 (the “’779 Patent”) (collectively, in
`this Complaint, “USAA Patents”).
`The ’432 and ’559 Patents are entitled “Systems and methods for remote deposit
`14.
`of checks,” and were invented by Charles Lee Oakes III, Randy Ray Morlen, Bharat Prasad, and
`Troy Bartlette Huth. The application from which the ’432 and ’559 Patents derive their effective
`filing date was filed by USAA on October 31, 2006.
`The systems and methods taught by the ’432 and ’559 Patents solve technological
`15.
`problems associated with earlier systems used for capturing images of checks. These innovations
`allowed USAA, for the first time in banking history, to allow users to transform general purpose
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`consumer devices that they have in their homes or are otherwise easy to acquire into a check
`image capture device. This had a profound impact on USAA’s members and USAA’s ability to
`accept deposit of remote checks, including because it eliminated the need for consumers (many
`of whom have limited means) to acquire or access specialized check processing equipment to
`deposit checks remotely.
`Among other things, the ’432 Patent’s system and method includes technological
`16.
`solutions to assist the customer in placing the digital camera at a proper distance from the check,
`present the photo of the check to the customer after the photo is taken with the digital camera,
`confirm that the mobile check deposit can go forward after optical character recognition is
`performed on the check in the photo, and check for errors before submitting the check for mobile
`check deposit. As another example, the ’559 patent’s device and method performs operations
`that include, among other things, receiving a digital image depicting at least portion of the check
`submitted by the user, applying optical character recognition to the digital image, determining an
`amount for the remote deposit of the check based on the optical character recognition, comparing
`the determined amount against a customer entered amount, optically reading a magnetic ink
`character recognition (MICR) line depicted in the digital image, performing duplicate check
`detection, and determining the image is suitable for creating a substitute check and accepting the
`digital image. Additional details and improvements to mobile check depositing systems are
`further described in the patents.
`The ’571 Patent is entitled “Systems and methods for image monitoring of check
`17.
`during mobile deposit,” and was invented by Michael Patrick Bueche Jr., Bharat Prasad, Minya
`Liang, Reynaldo Medina, and Charles Lee Oaks III. The application from which the ’571 Patent
`derives its effective filing date was filed by USAA on August 21, 2009. The ’571 Patent
`specifically relates to improvements to the remote check deposit process that include, for
`example, monitoring of the check with respect to a monitoring criterion, a feedback system that
`instructs the user regarding how to satisfy the monitoring criterion, and an automatic capture
`system that works in concert with the monitoring system to automatically capture a check image
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`when the monitoring criterion is satisfied. The ’571 Patent’s improvements to mobile check
`deposit systems are further described in the specifications.
`The ’779 Patent is entitled “Systems and methods for alignment of check during
`18.
`mobile deposit,” and was invented by Bharat Prasad, Minya Liang, and Reynaldo Medina. The
`application from which the ’779 Patent derives its effective filing date was filed by USAA on
`August 28, 2009. The ’779 Patent specifically relates to improvements to the remote check
`deposit process that include, among other things, projection of an alignment guide in the display
`of a mobile device, determination of “whether the image of the check aligns with the alignment
`guide,” automatic capture of the image of the check when the image is determined to align with
`the guide, and transmittal of the captured image of the check from the camera to a depository via
`a communication pathway between the mobile device and the depository. This system and
`method solve discrete, technological problems associated with computing systems used as part of
`capturing images of checks for deposit on mobile devices. The ’779 Patent’s improvements to
`mobile check deposit systems are further described in the specifications.
`The addition of the ’571 and ’779 Patent’s improvements to remote check deposit
`19.
`systems at USAA and elsewhere significantly increased their efficiency and performance.
`The ’571 and ’779 Patents overcame six post-grant review petitions at the Patent
`20.
`Trademark and Appeals Board (“PTAB”). Wells Fargo filed petitions for Covered Business
`Method (“CBM”) review against the ’571 Patent (CBM2019-00004) and ’779 Patent
`(CBM2019-00005) in November 2018. The PTAB denied institution of both petitions, finding
`that the claims of the ’571 Patent and ’779 Patent were directed to technological features that are
`novel and unobvious over the prior art and solve technical problems using technical solutions
`and were thus ineligible for CBM review. Wells Fargo subsequently filed petitions for Inter
`Partes Review (“IPR”) against the ’571 Patent (IPR2019-01082) and ’779 Patent (IPR2019-
`01083). On November 24, 2020, the PTAB issued Final Written Decisions in favor of USAA,
`finding every challenged claim not invalid over the prior art. The PTAB also recently denied
`institution of IPR petitions against the ’571 Patent and ’779 Patent filed by Mitek Systems, Inc.
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`Prior to USAA’s inventions, checks were processed for deposit using specialized
`21.
`check scanning machines, which typically were located in bank facilities or leased to businesses
`for use in their back offices. High-tech equipment manufacturers sold a variety of check
`scanning machines that cost up to tens of thousands of dollars.
`The passage of the Federal “Check 21 Act” in 2003 increased the technical risks
`22.
`associated with check imaging. A report by Alogent entitled “The Client Business Case for
`Remote Deposit Capture” explained how, under Check 21, items would be returned due to poor
`image quality, either on the digital image, or the printed Image Replacement Document (IRD).
`The deposit of check images requires compliance with certain technical
`23.
`specifications, such as the “Specifications for Electronic Exchange of Check and Image Data,”
`also known as DSTU X9.37-2003: a technical specification published by the Accredited
`Standards Committee X9, Inc. that spells out the file sequences, record types, and field formats
`to be used for the electronic exchange of check MICR line, associated check processing data and
`check images.
`An industry white paper entitled “Check 21: Controlling Image Quality at the
`24.
`Point of Capture” was published in 2004. The white paper acknowledges that one challenge
`facing remote deposit capture (“RDC”) is that the human eye does not have the ability to
`distinguish between a check image that meets digital processing criteria and one that does not.
`For example, the white paper points out that what is an acceptable image to one person may be
`unacceptable to another. The white paper discussed the importance of ensuring that an acceptable
`image of a check is captured at the first point of entry to the check clearing process, as a check
`image with quality issues is likely to be unpayable and represents a liability to the bank. Further,
`the report identified and discussed basic measurement metrics to ensure that a check image may
`be successfully cleared. Also in 2004, the FSTC, a financial industry technical group, published a
`report entitled “Image Quality and Usability Assurance- Phase I Project.” The report discussed a
`number of factors such as image size, skew, lightness/darkness, focus, and noise, among others
`that can lead to a failed image. Other publications discussing the perceived challenges of remote
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`deposit include statements made in 2005 by CIT Engineering Team, who designs specialized
`scanners for the RDC process, the RDC process is so delicate that small insights and/or small
`oversights are what distinguish an outstanding check scanning product from a mediocre one.
`25. When USAA introduced its patented technology to the market, it was met with
`both delight and concern because of its disruptive force. For example, in September 2009,
`AdAge published a report entitled “How Mobile Technology Is Changing Banking’s Future,”
`which observed that “USAA represents the bleeding edge of mobile banking technology” and
`described its pioneering system as a “technological development [ ] that allow[s] for deposits by
`iPhone and mobile payments.” As another example, in June 2009, Celent published an article
`entitled “USAA’s Mobile Remote Deposit Capture Initiative.” The article stated that mobile
`RDC is so disruptive that many banks might pass on the idea. The report acknowledged that
`USAA’s mobile RDC provided a compelling competitive advantage over other banks.
`By facilitating and improving remote mobile deposit, the innovations of the
`26.
`USAA Patents facilitate significant cost savings and provide many other financial benefits to
`banks. For example, in 2011, NCR published a white paper entitled “Mobile Remote Deposit
`Capture.” The white paper reported that the average cost of processing a paper check transaction
`at a bank branch is $3.75, and that a mobile deposit costs just $0.14.
`As another example, in 2015, Celent published a report entitled “State of Remote
`27.
`Deposit Capture 2015- Mobile Is the New Scanner.” The abstract of the report observed that
`mobile RDC was becoming the alternative to specialized check scanners, with banks racing to
`offer mobile RDC, which Celent predicted would have a profound effect on the branch channel.
`The report also observed that USAA’s systems result in a substantial improvement over the
`existing marketplace of complex, expensive check scanning machines and that by the date of the
`report mobile check image capture users outnumbered those using specialize desktop devices by
`more than 40 to 1. As another example, in 2016, an article entitled “Mobile Check Deposits- Pro
`Tips to Ensure They Go Smoothly” was published by an industry technology analyst on
`nerdwallet.com. The article acknowledged that mobile check deposit had become the most
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`popular feature of mobile banking, estimating that there are about 87 million people in the U.S.
`depositing checks using mobile check deposit. The article also stated that autocapture provides a
`technological solution for capturing an image that allows even a first-time user to be successful.
`In a 2017 report entitled “2017 Mobile Deposit Benchmark Report,” a leading
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`technology consulting firm reiterated the importance of the autocapture feature to mobile
`deposit. Among other things, it stated, “auto-capture must now be treated as a must-have feature
`across all strata of the financial services industry.”
`An industry expert hired by Wells Fargo testified in prior proceedings that the
`29.
`patented auto-capture techniques are now “widely acknowledged as the foundation for a
`successful mobile check deposit.”
`PNC Bank’s Infringement
`PNC is one of the largest full-service consumer and commercial banking
`30.
`providers in the United States. According to PNC’s website, PNC customers now deposit on
`average over 2 million checks per month using their mobile devices.
`PNC’s mobile remote deposit capture systems, including but not limited to PNC
`31.
`Mobile Deposit and PNC Deposit On-Site Mobile® are referred to herein, along with any other
`infringing instrumentalities that include similar functionality, as “PNC Mobile Deposit.” PNC
`states that users “can easily deposit a check right from your smartphone” using PNC Mobile
`Deposit, touting that deposit can be done “quickly, conveniently, and securely with mobile
`deposit and our mobile banking apps”:
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`PNC also promotes PNC Mobile Deposit with video advertisements, including
`32.
`commercials specifically touting mobile deposit, and has offered special promotions to
`customers to encourage them to try mobile deposit.
`PNC receives mobile check deposits from customers who, for example, download
`33.
`its application for iPhone or Android devices and use the application and device as instructed by
`PNC, including as detailed on PNC’s website and in its user guidelines.
`PNC did not release PNC Mobile Deposit until years after USAA had already
`34.
`implemented and released its patented technology to widespread adoption, demonstrating the
`commercial viability of USAA’s patented technology.
`PNC was on notice and, on information and belief, had actual knowledge of its
`35.
`infringement of the USAA Patents before the filing of the Complaint, including because the
`USAA Patents are publicly known and have been widely publicized in the banking industry,
`including in major publications read by PNC employees and specifically referring to PNC.
`For example, in 2018 USAA filed two complaints against Wells Fargo for
`36.
`infringement of certain of USAA’s mobile deposit patents. The first complaint, filed in June
`2018, included claims for infringement of the ’571 and ’779 Patents. The second complaint, filed
`in August 2018, included claims for infringement of U.S. Patent No. 10,013,681, the parent to
`the ’432 and ’559 Patents (which had not issued at that time).
`USAA’s claims based on the ’571 and ’779 Patents and the parent to the ’432 and
`37.
`’559 Patents were widely discussed in the banking industry. As an example, the American
`Banker, a publication which describes itself as “the essential resource for senior executives in
`banking and financial services, keeping its users updated on vital developments and focusing
`sharply on their most important concerns” ran a series of articles reporting on the USAA lawsuits
`against Wells Fargo and repeatedly noted the opinion of the publication the USAA patents had
`significant implications for other banks using USAA’s mobile deposit technology. These
`included, for example, a June 2018 article entitled “Is USAA vs. Wells Fargo the start of a
`broader patent war?” Wells Fargo was found, inter alia, to infringe the ’571 patent, and USAA
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`was awarded $200 million in past damages. The verdict was also widely reported on in the
`banking industry. For example, a November 2019 article entitled “USAA won $200M from
`Wells Fargo in patent fight. Will others be on the hook?”
`Another article in the American Banker, published in January 2020, discussed the
`38.
`result of the second lawsuit, in which Wells Fargo was found to infringe the ’681 Patent (and
`another patent) and USAA was awarded $102.8 million in past damages. For example, the article
`reported “Wells Fargo has lost a second mobile deposit patent lawsuit brought against it by
`USAA” and noted that “other banks should be on alert if they use the same technology” and
`specifically referenced USAA’s Deposit@Mobile product. Similar articles appeared in other
`major publications such as Bloomberg and Business Insider.
`Indeed, some of the news coverage of USAA’s mobile deposit patents references
`39.
`PNC Mobile Deposit. For example, S&P Global, a market intelligence publication covering
`commercial banking, published a November 2019 article entitled “Wells Fargo ordered to pay
`$200M for infringing USAA mobile deposit patents” that stated “other banks with apps for
`mobile check deposit could also be on the hook,” and specifically listed “PNC Financial Services
`Group Inc.” As another example, a June 2018 article by IPWatchDog entitled “USAA Asserts
`Mobile Check Deposit Patents Against Wells Fargo” stated that banking features offered by PNC
`“resemble” features covered by “USAA’s patents,” including specifically the ’571 Patent.
`Upon information and belief, PNC monitors these industry publications. For
`40.
`example, PNC’s website has specifically touted and cited coverage from the American Banker,
`Bloomberg, Business Insider, and S&P Global.
`In addition to the widespread coverage of USAA’s lawsuits against Wells Fargo,
`41.
`USAA’s Deposit@Mobile® technology has been well-known and publicized for years, and
`USAA receives widespread acclaim for its pioneering innovations in mobile deposit. For
`example, a 2020 report by Javelin Strategy and Research named USAA “as an overall ‘Leader’
`in both mobile and online banking,” and also evaluated PNC. Upon information and belief, PNC
`is aware of this and other acclaim for USAA’s Deposit@Mobile® products, including because it
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`was widespread in the industry and because some of the press surrounding USAA also referred
`specifically to PNC. As an example, a 2011 article in the Washington Post entitled “PNC
`launches mobile bank deposits” noted that “USAA Federal Savings first introduced mobile
`deposit in 2009.” PNC has previously cited articles from the Washington Post on its website and,
`on information and belief, closely monitors media coverage discussing its own products.
`USAA is further informed and believes that PNC has actual and constructive
`42.
`knowledge of the USAA Patents as a result of, among other things, its awareness of USAA’s
`Deposit@Mobile® products and USAA’s patent marking. For example, USAA marks its
`Deposit@Mobile® products pursuant to 35 U.S.C. § 287 through the USAA mobile application.
`As an example, the Deposit@Mobile® mobile application contains a “United States Patents”
`section specifically listing the ’432, ’559, ’571, and ’779 Patents by patent number.
`Further, to the extent that PNC contends it lacked actual knowledge of its
`43.
`infringement of any of the USAA Patents before the time of service of this Complaint, it was
`willfully blind by deliberately avoiding investigating USAA’s patents or inspecting USAA’s
`mobile check deposit application and/or instructing its employees not to investigate USAA’s
`patents or inspect USAA’s mobile check deposit application.
`PNC also has actual knowledge of its infringement of the USAA Patents by virtue
`44.
`of the complaint filed against PNC on September 30, 2020, and further by virtue of the instant
`amended complaint.
`In a letter dated October 2, 2020, PNC further acknowledged that it had actual
`45.
`knowledge of the prior Wells Fargo litigation and the patents asserted in that litigation (which
`include the ’571 and ’779 patents and the parent to the ’432 and ’559 Patents).
`As detailed below, PNC’s conduct with respect to Mobile Deposit constitutes
`46.
`willful infringement of USAA’s Patents. PNC’s use of the USAA Patents is not licensed or
`authorized by USAA in any way.
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`PNC has profited, and continues to profit, including by providing its infringing
`47.
`mobile deposit service to millions of PNC customers without USAA’s permission and without
`any compensation to USAA, materially harming USAA and its members.
`FIRST CLAIM FOR RELIEF – ’432 PATENT
`V.
`USAA re-alleges and incorporates by reference the allegations of the preceding
`48.
`paragraphs of this Complaint as if fully set forth herein.
`The ’432 Patent, entitled “Systems and methods for remote deposit of checks”
`49.
`was duly and legally issued on November 19, 2019. A true and correct copy of the ’432 Patent is
`attached as Exhibit A.
`USAA owns by assignment the entire right, title, and interest in and to the ’432
`50.
`Patent, including the exclusive right to seek damages for past, current, and future infringement
`thereof.
`USAA is informed and believes, and on this basis alleges, that PNC, agents of
`51.
`PNC, and/or third parties acting under PNC’s direction and control, have committed and
`continue to commit acts of direct infringement of one or more claims of the ’432 Patent literally
`and/or under the doctrine of equivalents, by making, using, selling, offering to sell and/or
`importing into the United States, PNC Mobile Deposit. Further, PNC controls the infringing
`system as a whole and obtains benefits from it.
`For example, the PNC Mobile Deposit system through which PNC receives
`52.
`deposits includes a mobile device including PNC’s downloaded app, which PNC provides to
`control check deposit by causing the mobile device to perform various functions such as
`instructing the customer to have a digital camera take a photo of a check, as illustrated for
`example by the following images from PNC’s website:
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`As another example, PNC Mobile Deposit gives an instruction to assist in placing
`53.
`the digital camera at a proper distance away from the check for taking the photo, including as
`depicted in the below screenshot from the PNC Mobile Deposit application:
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`In addition, PNC Mobile Deposit presents the photo of the check after the photo is
`54.
`taken with the mobile phone’s digital camera.
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`PNC Mobile Deposit causes the mobile device to confirm that the mobile check
`55.
`deposit can go forward after optical character recognition (“OCR”) is performed on the check in
`the photo, and causes the mobile device to check for errors before the submitting step. For
`example, as depicted in the below screenshot from the PNC Mobile Deposit application, if the
`customer-entered amount and the OCR determined amount do not match, the PNC Mobile
`Deposit application will display an error message stating: “The amount entered and the amount
`recognized on the check don’t appear to match. Please verify the amount you entered and correct
`it if needed. If the amount you entered is correct, please retake the photo.”
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`PNC also is inducing infringement of the ’432 Patent, in violation of 35 U.S.C.
`56.
`§ 271(b), including by knowingly encouraging or aiding third parties to make, use, sell or offer
`to sell PNC Mobile Deposit in the United States, or to import PNC Mobile Deposit into the
`United States, and/or in violation of 35 U.S.C. § 271(f)(1), by supplying or causing to be
`supplied PNC Mobile Deposit in or from the United States, without license or authority from
`USAA, with knowledge of or willful blindness to the fact that PNC’s actions will induce others
`to directly infringe the ’432 Patent. PNC actively encourages, directs, and controls third parties,
`including its end users, to make and/or use PNC Mobile Deposit in an infringing manner,
`including
`through PNC’s website, advertisements, documentation/instructional material,
`customer support, application and feature descriptions, and in-application instructions. PNC has
`intentionally aided and encouraged third parties, including its end users, to use PNC Mobile
`Deposit in the United States in a manner that it knows would infringe or have a high probability
`of infringing the ’432 Patent, with the specific intent that those performing the acts infringe the
`’432 Patent.
`PNC is contributorily infringing the ’432 Patent in violation of 35 U.S.C. §
`57.
`271(c), by selling, offering to sell, and/or importing into the United States, and/or in violation of
`35 U.S.C. § 271(f)(2), by supplying or causing to be supplied in or from the United States, PNC
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`Mobile Deposit for use in infringing the ’432 Patent, constituting a material part of the invention,
`knowing PNC Mobile Deposit to be especially made or especially adapted for use in infringing
`the ’432 Patent. PNC Mobile Deposit is not a staple article or commodity of commerce suitable
`for substantial non-infringing use.
`As a result of PNC’s infringement of the ’432 Patent, USAA has been damaged.
`58.
`In addition, PNC’s infringing acts and practices have caused and are causing immediate and
`irreparable harm to USAA. USAA is entitled to recover for damages sustained as a result of
`PNC’s wrongful acts in an amount yet to be determined and to receive such other and further
`relief, including equitable relief, as this Court deems just and proper.
`USAA is further informed, and on this basis alleges, that PNC’s infringement of
`59.
`the ’432 Patent has been and continues to be deliberate and willful, and, therefore, this is an
`exceptional case warranting an award of enhanced damages for up to three times the actual
`damages awarded and attorney’s fees to USAA pursuant to 35 U.S.C. §§ 284-285. As discussed
`above, PNC has had knowledge of the ’432 Patent and its infringement thereof, and yet has
`deliberately continued to infringe in a wanton, malicious, and egregious manner, with reckless
`disregard for USAA’s patent rights.
`SECOND CLAIM FOR RELIEF – ’559 PATENT
`VI.
`USAA re-alleges and incorporates by reference the allegations of the preceding
`60.
`paragraphs of this Complaint as if fully set forth herein.
`The ’559 Patent, entitled “Systems and Methods for Remote Deposit of Checks,”
`61.
`was duly and legally issued on