Diebold claims latest ITC ruling in Hyosung ATM fight

UPDATE 1 — Diebold Nixdorf said the International Trade Commission (ITC) issued a final ruling in favor of Diebold Nixdorf in a long-running ATM patent case against Korean company Nautilus Hyosung.

However, Nautilus Hyosung America responded by saying the ITC ruling confirmed its prior decision “rejecting the infringement claims with respect to four of six of the patents asserted by Diebold Nixdorf.”

Hyosung said the ITC’s decision “addressed just three retail ATM models” with a legacy design feature that had been eliminated.

“Although Hyosung disagrees with the ITC’s ruling and plans to appeal it, in light of the new design, the ruling will not adversely impact Hyosung’s business in any way,” Hyosung added.

Diebold Nixdorf said: “The ruling bars Hyosung from importing or installing a significant number of bank and retail grade automated teller machines (ATMs) in the United States because those products infringe Diebold’s patents …

“One patent relates to the innovative design which allows for a more compact footprint and ease of service of Diebold’s ATMs.

“The other patent relates to Diebold’s movable MICR-head, which reads checks processed through an ATM with a high degree of accuracy and security and represents a key component of deposit automation technology in the United States.

“After a full evidentiary hearing, the administrative law judge found that there is ‘strong circumstantial evidence that Hyosung had knowledge of Diebold’s patented technology, copied it, and encouraged its customers to use it in an infringing way’. ”

Jonathan Leiken, chief legal officer for Diebold Nixdorf, said: “This ruling confirms that Hyosung violated U.S. law by importing and selling products that infringe our patented technology.

“Hyosung is now barred from importing the infringing technology into the United States and their days of copying Diebold innovations are over.”

Sungmahn Kim, chief operating officer at Nautilus Hyosung America, said: “There will be zero impact to our customers, our new and existing products or our ability to provide service and parts to any and all Hyosung ATMs.”