Diebold Nixdorf prevails in patent dispute

Source: Diebold Nixdorf

Diebold Nixdorf (NYSE: DBD) announced today that the U.S. Court of Appeals for the Federal Circuit reversed the decision issued by the International Trade Commission (ITC) against the company in a patent dispute against Nautilus Hyosung.

The Federal Circuit agreed with Diebold Nixdorf that Hyosung's sole remaining patent in its case against the company is invalid and unenforceable. The Federal Circuit's decision is a victory for the company, reversing the judgment of the ITC that Hyosung's patent was valid and infringed by Diebold Nixdorf.

The patent found to be invalid, U.S. Patent No. 8,523,235, relates to certain automated teller machines (ATMs) with Diebold Nixdorf's ActivMedia™ module. The underlying investigation at the ITC began with four patents, but Hyosung dismissed three of the patents after Diebold Nixdorf provided evidence that Hyosung had simply copied technology that had already been introduced by Diebold Nixdorf and other prominent manufacturers.

The parties will have an opportunity to appeal the Federal Circuit's decision to the United States Supreme Court.

The underlying Investigation filed by Hyosung was in retaliation for Diebold's earlier complaints filed with the International Trade Commission and in the U.S. District Court for the Northern District of Ohio, alleging that Hyosung infringes Diebold Nixdorf patents. In that first ITC Investigation, the administrative law judge found that nearly all of Hyosung's deposit automation-enabled ATMs and modules infringe two Diebold Nixdorf patents. In fact, the administrative law judge specifically noted evidence showing that "Nautilus had knowledge of Diebold's patented technology, copied it, and encouraged its customers to use it in an infringing way." Diebold Nixdorf intends to seek damages in a jury trial in U.S. District Court for Hyosung's infringement.

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