Zelle’s Big Bank Backers Accused of Infringing Security Patents

Bank of America Corp., JPMorgan Chase & Co., and the five other major US banks backing the Zelle person-to-person payments system were accused in a federal lawsuit of integrating patented identity-authentication technology into the app without permission.

Factor2 Multimedia Systems LLC, a non-practicing entity, sued the banks and Early Warning Services LLC—their jointly owned payments company that operates the Zelle network—alleging infringement of six patents in a complaint filed Tuesday in US District Court for the Western District of Texas.

Truist Financial Corp., Capital One Financial Corp., the PNC Financial Services Group Inc., US Bancorp, ...