Bank of America and USAA have agreed to cross-license their patent portfolios covering AI, banking, and technology innovations.
According to Reuters, the deal covers a range of technologies the two institutions have developed, including artificial intelligence, machine learning, information security, and network infrastructure, as well as banking-specific capabilities such as payment processing and mobile cheque deposit. The companies did not disclose the financial terms of the agreement.
Cross-licensing follows years of patent litigation
The agreement is notable given USAA's litigation history in the mobile-banking technology space. The San Antonio, US-based company has pursued patent infringement claims against several competitors over the past decade, arguing that rivals copied its mobile-deposit and related banking technologies without authorisation.
USAA previously secured jury verdicts totalling more than USD 500 million against Wells Fargo and PNC Bank. Of that amount, USD 218 million came from a 2022 verdict against PNC over mobile-deposit technology. That judgment was overturned by a federal appeals court in 2025, and the US Supreme Court declined to review the case in May 2026, effectively closing that dispute in PNC's favour. USAA has also settled separate lawsuits with Truist, in 2023, and Regions Bank, in 2026, over similar mobile-banking patent claims. It had not previously taken legal action against Bank of America.
Bank of America executive David Marx said the agreement supports the application of innovations from both companies in ways intended to benefit clients and contribute to progress across the financial services industry. Moreover, USAA Investments Principal Mike Chaparro added that the company intends to pursue similar licensing arrangements with other banks and credit unions going forward.
Industry implications
The agreement signals a shift from litigation towards negotiated licensing as a mechanism for resolving overlapping patent claims in banking technology. Mobile deposit, authentication, and related digital-banking features have been frequent sources of dispute among US financial institutions, as many banks have developed comparable capabilities independently or through shared technology vendors. Cross-licensing arrangements of this kind allow institutions to continue using contested technologies without the cost and uncertainty of prolonged court proceedings.
USAA's stated intention to seek further licensing deals with other banks and credit unions suggests the agreement with Bank of America could serve as a template for resolving similar disputes elsewhere in the sector, potentially reducing future patent litigation around core mobile and digital banking functions.
