Nautilus Hyosung America Defeats Diebold Nixdorf in Patent Lawsuit

IRVING, Texas, May 24, 2017 /PRNewswire/ -- Nautilus Hyosung America (Hyosung), the largest and fastest growing ATM provider in the United States, is pleased to announce the final determination of the International Trade Commission (ITC), in which the ITC confirmed its prior decision rejecting the infringement claims with respect to four of six of the patents asserted by Diebold Nixdorf. 

With respect to one of the final two patents, Hyosung's latest firmware update and service changes, which have been examined by the ITC and determined not to infringe, have already been deployed to Nautilus Hyosung's legacy terminals and will be included with new terminals moving forward.  As for the final patent, the ITC's decision addressed just three retail ATM models with a legacy design feature that has 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.

"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," said Sungmahn Kim, executive vice president and chief operating officer at Nautilus Hyosung America. "Hyosung is thankful that the ITC's ruling validates our rich history in research, development and innovation by rejecting Diebold's claims as to our latest and most cutting edge technology."

The ITC's final determination confirmed the ALJ's ruling in Hyosung's favor for the overwhelming majority of Diebold's claims. Prior to trial, the administrative law judge (ALJ) granted a request by Diebold to drop its infringement allegations against Hyosung with respect to two patents – U.S. Patent Nos. 7,121,461 & 7,249,761 – and found all asserted claims of another patent invalid – U.S. Patent No. 7,314,163.  In December, the ALJ found a fourth patent – U.S. Patent No. 7,229,010 – not infringed.

"This ruling by the ITC comes on the heels of the preliminary ruling issued by the ALJ in our counter assertion against Diebold, which in turn affects all of Diebold's latest line of financial products," said Mr. Kim.

On March 14, 2017, a separate ALJ at the ITC determined that Diebold infringes Hyosung's U.S. Patent No. 8,523,235, which was a major advancement in the industry—providing critical automated deposit technology with a specific, high-efficiency, high-reliability design for the processing and depositing of mixed bundles of cash and checks while avoiding the significant dangers accompanying overlapped bills.

The ALJ's preliminary ruling recommends an exclusion order and cease and desist order barring Diebold Nixdorf from importing and/or selling Diebold's latest line of financial industry ATMs.  Notwithstanding Hyosung's defeat of Diebold's infringement claims, Hyosung fully intends to continue its infringement claims against Diebold and see that Diebold's infringing products are barred from the U.S.

About Nautilus Hyosung America
Hyosung is the North American subsidiary of South Korea-based Hyosung, Inc., a global leader in providing ATMs to the retail off-premises and financial institution markets. Since entering the North American market in 1998, Hyosung has become the largest provider of ATMs in the United States. Hyosung is headquartered in Irving, Texas, and provides research and development support in its Global Software Center in Dayton, Ohio. 

SOURCE Nautilus Hyosung America