SAN DIEGO – July 19, 2012 – Mitek Systems (NASDAQ: MITK, www.miteksystems.com), a leading mobile imaging software solutions provider, today filed a motion to amend its complaint to include the claims of defamation and violation of the Lanham Act for unfair business practices in its lawsuit against United Services Automobile Association (USAA) in the U.S. District Court for the District of Delaware.
“We believe these misrepresentations are damaging to our company and are designed to inhibit Mitek’s ability to compete in the marketplace,” said James DeBello, Mitek CEO and President. “Mitek is a known innovator and pioneer in the mobile banking sector with a substantial list of patents and trademarks to our name. Our team worked hard over many years to create Mobile Deposit® and was awarded five U.S. patents related to this technology.”
“Ironically, USAA’s efforts to malign Mitek stand in stark contrast to the core values it so strongly espouses. We have given USAA every opportunity to correct their misstatements, but, unfortunately, it has steadfastly refused to do so. By unfairly using its power and size to try to intimidate Mitek, USAA is in effect threatening the very spirit of innovation so critical to the success of smaller companies around the country. Mitek takes great pride in being an ethical and responsible business partner to the financial services industry, and we are prepared to do what is necessary to defend our reputation and our inventions,” continued DeBello.
In a press release issued on April 2, 2012, USAA falsely accused Mitek of misappropriating USAA’s proprietary and confidential information while under contract with USAA and claiming it as its own. Mitek flatly denies these allegations and believes that it fully complied with its contractual obligations to USAA and did not misappropriate any confidential USAA information to develop its first-to-market product.
To date, USAA has not provided any evidence of wrongdoing by Mitek, nor has it identified the proprietary and confidential information that was allegedly misappropriated. Mitek launched Mobile Deposit in January 2008 with USAA’s full knowledge, and USAA did not launch its competing product until August 2009. USAA first accused Mitek of wrongfully taking information from USAA to develop a product in April 2012—more than four years after first learning about Mitek’s mobile technology.
On April 12, 2012, Mitek filed a lawsuit against USAA for patent infringement and breach of contract. Mitek believes USAA is infringing upon five of Mitek’s patents related to its Mobile Deposit® product. Mitek is also alleging that USAA breached the parties’ license agreement by using Mitek products beyond the scope of the agreed-upon license terms, and by disclosing confidential pricing and other confidential information for a Mitek legacy product installation in a complaint filed in Texas by USAA against Mitek. USAA’s complaint is seeking a declaratory judgment that some of Mitek’s Mobile Deposit patents do not apply to USAA or, alternatively, cannot be enforced against USAA. USAA is also falsely alleging that Mitek took unidentified information from USAA and incorporated it into a Mitek patent application in January 2008 and launched its Mobile Deposit based on such information.
In its lawsuit against USAA, Mitek seeks monetary damages, injunctive relief and a finding that USAA willfully infringed Mitek’s patents, breached the parties’ license agreement, defamed Mitek and violated the Lanham Act. For more information concerning the litigation, go to: http://www.miteksystems.com/usaa-litigation.
About Mitek Headquartered in San Diego, Calif., Mitek Systems (NASDAQ: MITK) is a mobile imaging software solutions provider that allows users to remotely deposit checks, pay their bills, get insurance quotes, and transfer credit card balances by snapping a picture with their camera-equipped smartphones and tablets instead of using the device keyboard. Mitek’s technology increases convenience for the consumer by eliminating the need to go to the bank branch or automated teller machine, and dramatically reduces processing and customer acquisition costs while increasing customer retention. With a strong patent portfolio, Mitek is positioned as the leading innovator in mobile imaging software and currently provides its solutions to Fortune 500 financial services companies. For more information about Mitek Systems, please visit www.miteksystems.com.
Forward-Looking Statements contained in this news release relating to the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s long-term prospects, market opportunities beyond financial services and the outcome of litigation are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks that the Company will not be able to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner or the outcome of litigation. Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year September 30, 2011 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
©2012 Mitek Systems. All rights reserved. The Mitek Systems name and logo and Mobile Deposit® are registered trademarks of Mitek Systems, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.
Investor Relations Contact: Julie Cunningham 858.309.1780, email@example.com