On June 12, 2025, the Federal Circuit held that Mitek Systems, Inc. failed to establish subject-matter jurisdiction in its declaratory judgment action against United Services Automobile Association (USAA). Mitek had sought a court declaration that its MiSnap software did not infringe USAA's patents, specifically U.S. Patents Nos. 8,699,779; 9,336,517; 9,818,090; and 8,977,571. The district court had previously dismissed the case, and the Federal Circuit affirmed this decision.
The Federal Circuit found that Mitek lacked a reasonable apprehension of suit and faced no real risk of indemnity liability. The court noted that MiSnap, a software development kit, does not itself practice all elements of USAA's asserted claims. Furthermore, USAA had settled its suit against Wells Fargo after Mitek filed its action, which further undermined any ongoing controversy regarding direct infringement.
Regarding potential indemnity, the Federal Circuit reviewed Mitek's contracts and found carve-outs that shielded Mitek from likely payment obligations, concluding Mitek could not demonstrate a reasonable potential for liability. Even if jurisdiction existed, the court approved the district court's discretionary decision to decline declaratory relief, suggesting intervention in an actual infringement suit against a bank customer would be a more appropriate avenue for resolving factual disputes.
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