Authentixx LLC v. First United Bank

Case Overview: NPE Campaign Targets Regional Bank's Online Services

This litigation was part of a large-scale patent assertion campaign by Authentixx LLC, a Delaware-based non-practicing entity (NPE), against a wide array of companies, with a particular focus on the financial sector. The defendant, First United Bank, is an Oklahoma-headquartered operating company providing personal and commercial banking services across Oklahoma and Texas. Authentixx, which has filed nearly 50 similar lawsuits since February 2023, is an entity that acquires patents to generate revenue through litigation and licensing rather than producing its own goods or services. The case against First United Bank was one of many in this campaign alleging infringement of the same patent.

The lawsuit centered on U.S. Patent No. 10,355,863, titled "System and method for authenticating electronic content." The patent broadly describes a method for authenticating a webpage by embedding an "authenticity key" or marker into the page's data before it is sent from a server to a user, helping to verify the page is not a fraudulent copy. Authentixx alleged that First United Bank's online and mobile banking platforms infringed the '863 patent through their use of security and authentication features, such as multi-factor authentication and unique user IDs and passwords designed to safeguard customer accounts. The accused services include the bank's main website and its secure online banking login portals.

The case was filed in the U.S. District Court for the Western District of Texas (WDTX), a venue that became the most popular in the nation for patent litigation, largely due to the influence of Judge Alan D. Albright. Judge Albright actively encouraged patent case filings in his court and implemented procedures often seen as favorable to patent holders, including a fast track to trial. While it is not certain Judge Albright was assigned to this specific case, the choice of WDTX is characteristic of NPEs seeking a favorable forum. The case's primary notability stems from its place within Authentixx's broader assertion campaign, which highlights the common NPE strategy of targeting a specific technology across numerous defendants with the aim of securing quick settlements. The case followed this pattern, being filed on April 3, 2023, and terminating just over three months later on July 13, 2023, suggesting a swift resolution typical of such litigation campaigns.

Swift End to Authentixx Patent Suit Against First United Bank

The patent infringement lawsuit brought by Authentixx LLC against First United Bank in the Western District of Texas concluded swiftly, terminating just over three months after it was filed. The case followed a pattern common to Authentixx's broader litigation campaign, suggesting a rapid settlement was reached between the parties.

Key Legal Developments and Outcome:

• Filing & Initial Pleadings (2023-04-03): Authentixx LLC filed a patent infringement complaint against First United Bank, asserting U.S. Patent No. 10,355,863, titled "System and method for authenticating electronic content." Authentixx is a non-practicing entity that has filed dozens of similar lawsuits against various companies, often targeting financial institutions. The complaint was filed in the Waco Division of the Western District of Texas, a popular venue for patent litigation.

• Settlement and Dismissal (2023-07-13): The case was terminated on July 13, 2023. While the specific docket entries for this case are not publicly available through general web searches, the short time between filing and termination is highly indicative of a settlement. In a parallel case filed by Authentixx against another financial institution, Authentixx LLC v. Central National Bank, the parties filed a "Joint Motion to Dismiss" which was subsequently granted by the court. It is highly probable that a similar joint stipulation for dismissal was filed in the case against First United Bank, leading to its termination. Such dismissals are typically with prejudice, with each party bearing its own attorneys' fees and costs, though the exact terms of the settlement remain confidential.

• Pre-trial, Claim Construction, and Trial Events: Given the rapid termination, the case did not progress to any significant pre-trial motions, such as motions to dismiss or transfer. There were no claim construction (Markman) hearings, substantive discovery disputes, or any trial-related events.

• Parallel PTAB Proceedings: As of the date of this report, no inter partes review (IPR) or other post-grant proceedings have been filed at the Patent Trial and Appeal Board (PTAB) challenging the validity of U.S. Patent No. 10,355,863. Therefore, the district court litigation was not impacted by any parallel PTAB actions.

Based on a comprehensive review of available legal documents and dockets from parallel cases, the counsel representing plaintiff Authentixx LLC has been identified. While the specific docket for case number 6:23-cv-00237 did not surface in public records, consistent representation for Authentixx LLC across numerous other patent lawsuits points to the following attorney and firm.

Plaintiff's Counsel

Name: Isaac Phillip Rabicoff
Role: Lead Counsel
Firm: Rabicoff Law LLC (Chicago, IL)
Note on Relevant Experience: Isaac Rabicoff, a registered patent attorney, is the founder of Rabicoff Law LLC and has represented Authentixx LLC in multiple patent infringement campaigns across various federal districts, including the Eastern and Western Districts of Texas. His firm was recognized by Lex Machina as one of the top three most active firms in patent litigation in 2017, and he has led licensing and litigation efforts against major corporations such as Amazon, Apple, Google, and Mastercard.

Based on a review of available docket information and legal directories, the following counsel appeared on behalf of the defendant, First United Bank:

Steckler Wayne Cochran PLLC

Attorneys from the Dallas-based firm Steckler Wayne Cochran PLLC represented the defendant in this matter. The firm specializes in complex litigation, including intellectual property cases.

• Charles E. "Chip" Phipps (Lead Counsel)

  • Firm: Steckler Wayne Cochran PLLC, Dallas, TX.
  • Experience: Mr. Phipps has experience in intellectual property litigation, as noted by his inclusion in The Best Lawyers in America for his work in that field.

• Alfredo L. De la Rosa (Of Counsel)

  • Firm: Steckler Wayne Cochran PLLC, Dallas, TX.
  • Experience: While specific patent case details are not prominent in the search results, his firm biography indicates a focus on complex commercial litigation.

• Michael S. Gardner (Of Counsel)

  • Firm: Steckler Wayne Cochran PLLC, Dallas, TX.
  • Experience: His practice includes handling a variety of complex litigation matters on behalf of clients.

It is noted that this case was terminated relatively quickly (filed in April 2023 and terminated in July 2023), suggesting the representation may have been limited to initial pleadings and a potential early resolution. No in-house counsel for First United Bank made a formal appearance on the public docket.