10 cents (estimated) a transaction x 5Mil transactions $500K
Not too shabby.
Overall, I'm not too worried. USAA has no patents to speak of. Its one thing to share a concept, its another to execute it and patent it. If their tech had any merit, they would have forked over the ducats to patent it.
'It's unfortunate when business negotiations break down; however, Mitek is the proven leader in mobile imaging software, as evidenced by the numerous U.S. patents we have been awarded,' stated James DeBello, president and CEO of Mitek Systems. 'We believe these claims are without merit and we intend to vigorously defend our intellectual property rights, as necessary.
USAA is working MITK to get better terms. Both parties are most likely surprised over market reaction. Most likely see deal in next several days... IMO
Agree, this is all leverage to get better terms. Both sides could have shown a little more tact in approaching the matter however if USAT allegations are to be believed. At least DiBello seems classy about the matter.