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Update: Court denies motion for injunction against Diebold

July 11, 2005

NORTH CANTON, Ohio - Diebold Inc. announced July 11 that the U.S. District Court for the Northern District of California denied a motion filed by the Financial and Security Products Association for a preliminary injunction against the company. The injunction was sought to prevent Diebold from implementing policies on proprietary ATM software, parts and documentation.

According to a news release issued by Diebold, the court recognized Diebold's right to protect its intellectual property, with respect to its diagnostic software and service manuals. The court emphasized that allowing Diebold to enforce its patents and copyrights is in the public's interest.

The court also found that FSPA failed to demonstrate irreparable injury and raised serious questions about whether the organization had legal standing to even bring the claim. "The record does not demonstrate that TPMs (third-party maintenance companies) are in danger of losing contracts for ATM servicing or maintenance," the court wrote in its ruling.

"We are extremely pleased with this decision," said David Bucci, senior vice president of Diebold's Customer Solutions division. "The protection of our intellectual property is critical to our ability to make ongoing improvements and innovations in service. We believe our approach to service allows Diebold customers the flexibility to make ATM service choices that best fit their needs and impacts the industry in a positive manner."

The motion for the injunction, which was filed in October, alleged monopolization and unfair competitive practices. FSPA filed the lawsuit on behalf of its members, which include several third-party maintenance providers that service ATMs manufactured by Diebold as well as other similar companies. An FSPA spokesperson said FSPA had no comment about the court's decision, adding that the association is "studying itsoptions."

Read also: BREAKING: FSPA files for preliminary injunction, FSPA seeks preliminary injunction against Diebold and FSPA moves forward with motion for preliminary injunction against Diebold

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