If you’ve ever deposited a check by snapping a photo of it on your phone while sitting on your couch, you’ve used the exact technology that just landed another major bank in hot water. In late January 2025, the San Antonio-based insurance giant USAA filed a fresh lawsuit against Regions Bank.
The claim? Patent infringement.
Specifically, USAA alleges that Regions is using its proprietary mobile deposit capture technology without paying for the privilege. This isn't just some small-fry legal bickering. It’s the latest chapter in a massive, years-long campaign by USAA to force the entire banking industry to pay up for a feature we all now take for granted.
The Core of the Conflict
Basically, USAA says they invented the way your phone talks to the bank to verify a check image. They started developing this stuff in the early 2000s. Why? Because their members are military folks who might be stuck on a ship in the middle of the Pacific or deployed in a desert with no bank branch in sight.
Regions Bank, headquartered in Birmingham, Alabama, is the latest target. USAA isn't playing around here; they’ve pointed out that over 24% of Regions' deposit transactions happen via mobile. That is a huge chunk of business. USAA is essentially saying, "You’re making a ton of money off our ideas, and we want our cut."
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They’re asking for triple damages because they claim the infringement was "willful." That’s legal speak for "you knew you were doing it and didn't care."
Why This Lawsuit is Different
You might remember USAA going after Wells Fargo and PNC. They won big in those cases—initially, anyway. Wells Fargo was ordered to pay over $300 million. PNC was hit with a $218 million verdict.
But here’s the kicker: for the Regions Bank case, USAA is using four different patents than the ones involved in the previous fights. They are specifically looking at U.S. Patent Nos. 12,159,310 and 12,211,095. These deal with "auto-capture" functionality and video frame processing. Ever noticed how your banking app wait for the check to be perfectly in focus before it automatically snaps the picture?
Yeah, that’s what we’re talking about.
A History of Legal War
To understand why USAA has sued Regions Bank over mobile deposits, you have to look back at 2017. That year, USAA sent "warning letters" to about 100 different banks. The message was simple: we have 130 patents on mobile deposit technology, and you’re probably breaking the law by using it.
Some banks took the hint.
- Discover signed a licensing deal in 2023.
- Truist settled and signed a deal later that same year.
- First Citizens Bank got on board in late 2024.
Regions, however, didn't sign a deal. They kept using the tech, which USAA claims they didn't even launch until years after USAA had already mastered it.
The Defense: "It's Just a Camera"
Regions isn't just going to roll over. Like PNC before them, they’re arguing that these patents shouldn't even exist. In April 2025, Regions filed for a dismissal, basically saying the patents don't describe a "technological improvement."
Their argument is honestly pretty straightforward: "Using a camera to take a photo of a piece of paper isn't an invention; it's just how cameras work."
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They’re leaning heavily on a 2024 appellate court ruling that actually overturned USAA’s win against PNC. In that case, the judges decided some of USAA’s patents were "unpatentable" because they were too abstract. Regions is hoping to catch that same lucky break.
What This Means for You
If you’re a Regions customer, don't panic. Your mobile deposit feature isn't going to vanish tomorrow. These legal battles move at a snail's pace. Even if USAA wins a massive judgment, the bank usually just pays the licensing fee and keeps the service running. It’s a cost of doing business.
The real drama is happening in the East Texas court system, which is famous for being friendly to patent holders. That’s why USAA keeps filing there.
Why USAA is So Protective
A lot of people think USAA is being a "patent troll," but they see it differently. They poured millions into R&D when everyone else was still making people drive to a teller. Nathan McKinley, USAA’s head of corporate development, has been very vocal about this. He says they just want to be "reasonably compensated" so they can put that money back into services for veterans.
Surprising Facts About the Tech
It wasn't always just USAA. In the beginning, they worked with a company called Mitek. They had a falling out, sued each other, and settled in 2014. Both companies walked away with the right to their own patents.
Most other banks actually license their tech from Mitek. But USAA claims that even if a bank uses Mitek's software, it might still be infringing on USAA's specific process patents. It’s a messy, overlapping web of intellectual property.
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What’s Next?
The case is currently grinding through the U.S. District Court for the Eastern District of Texas. Here is what to watch for in the coming months:
- The Dismissal Hearing: Will the judge agree with Regions that the patents are too "abstract"?
- The Supreme Court Factor: USAA has asked the Supreme Court to look at the PNC reversal. If SCOTUS weighs in, it could change everything for the Regions case.
- Potential Settlement: Now that the lawsuit is public and messy, Regions might decide it's cheaper to just sign a licensing agreement like Truist did.
If you’re curious about how your own bank handles this, check your app's "About" or "Legal" section. You might see a mention of USAA or Mitek patents buried in the fine print.
Actionable Insights:
- Keep Using the Tech: There is zero risk to consumers using mobile deposit during this litigation.
- Watch Your Fees: While banks usually absorb these costs, keep an eye on "technology fees" or "mobile service" updates in your monthly statements.
- Diversify: If you rely heavily on mobile banking, it's always a good idea to have a backup account at a different institution, just in case a specific feature ever goes offline during a legal dispute (though this is unlikely here).
The reality is that USAA has sued Regions Bank over mobile deposits to set a precedent. If they win here, the remaining banks on that list of 100 will likely start writing checks very quickly.