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ITC judge recommends barring import of Hyosung ATMs, components in patent dispute

December 1, 2016

In an initial determination, the administrative law judge for the International Trade Commission has recommended an exclusion order prohibiting the importation into the United States of Nautilus Hyosung deposit automation-enabled ATMs and modules.

In an announcement about the decision, Diebold Nixdorf said the judge's recommendation vindicates the company's claim that Hyosung is infringing on two of its patents.

The patents relate to technology that makes it possible for an ATM to read magnetic ink data on a check submitted for deposit, and to structures that simplify service and maintenance of ATMs.

Diebold Nixdorf Senior Vice President and chief legal officer Jonathan Leiken said it would be difficult for Hyosung to design a work-around for the magnetic ink patent. "The only way Nautilus Hyosung can avoid infringing the patent is to rely on optical reading functionality that decreases check-reading accuracy and substantially increases the risk of fraud."

The initial determination found that Hyosung does not infringe a third patent, but the products alleged to infringe on that patent also use technology covered by the magnetic ink patent. As a result, the scope of products covered by the recommended exclusion order remains unchanged.

The judge's decision is subject to review by the International Trade Commission, which defers to the judge's findings of fact in the case.

Leiken said that following the conclusion of the ITC proceedings, Diebold Nixdorf expects to seek significant damages from Hyosung in a jury trial.

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Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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