Wells Fargo was ordered to pay $200m in damages after it was found guilty of infringing United Services Automobile Association (USAA) patents.

A district court jury in Texas found that the American lender deliberately infringed on two USAA patents. The patents were associated with ‘auto capture’ that facilitates cheque deposits made through smartphones.

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USAA vice president of corporate development Nathan McKinley said: “The verdict acknowledged the value of USAA’s innovation on behalf of members.

“We hope the industry acknowledges this verdict as further evidence of the enforceability of these patents.

“Our goal is to be reasonably compensated for the benefits we believe the industry has received from using USAA’s pioneering efforts.”

The auto capture process allows customers to take a photo of the cheque and deposit it online. It eliminates the need to visit branches or send mails for the task.

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According to a USAA statement, almost all US-based financial institutions use the technology, thereby serving around 87 million consumers.

USAA filed the lawsuit in June 2018 alleging the infringement. The financial services firm also filed a separate lawsuit against Wells Fargo regarding mobile remote deposit process. The trials are expected to begin in January next year.

The funds received as damages will be utilised in improving services, USAA added.

USAA is a family of companies that offers financial services to the US military personnel and their families.