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Administrative Law Judge Recommends Exclusion Order Barring Nautilus Hyosung From Importing ATMs Containing Diebold-Patented Technology

NORTH CANTON, Ohio, Dec. 1, 2016 /PRNewswire/ -- Diebold Nixdorf today announced the initial determination of the International Trade Commission, in which the Administrative Law Judge recommends an exclusion order barring the importation of Nautilus Hyosung deposit automation-enabled automated teller machines (ATMs) and modules. The decision, which finds that Hyosung infringes two Diebold patents and rejects Hyosung's claim that the patents are invalid, vindicates Diebold's concern that Hyosung is infringing Diebold's intellectual property rights.

Diebold Nixdorf Primary Logo. (PRNewsFoto/Diebold Nixdorf)

The patents found to infringe relate to technology allowing the ATM to read the magnetic ink data on a check submitted for deposit, and on structures that make service and maintenance of ATMs simpler and more efficient. Regarding the possibility of Hyosung designing around the magnetic ink patent, Jonathan Leiken, Diebold Nixdorf senior vice president and chief legal officer said, "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 accused of infringing that patent are the same products as are found to infringe the magnetic-ink patent. Accordingly, the decision on the third patent does not affect the scope of the exclusion order that the Administrative Law Judge has recommended.

The Administrative Law Judge's decision is subject to review by the International Trade Commission. The Commission defers to the Judge's findings of fact in the case.

"Our company has built a strong patent portfolio, investing hundreds of millions of dollars in research and development, and has been granted numerous patents to protect that investment," said Leiken. "We are committed to protecting our interests in U.S. industry, as well as enforcing our intellectual property rights throughout our portfolio of solutions. Following the conclusion of the ITC proceedings, Diebold Nixdorf expects to seek significant damages in a jury trial in U.S. federal court for Hyosung's infringement activities."

About Diebold Nixdorf

Diebold Nixdorf is a world leader in enabling connected commerce for millions of consumers each day across the financial and retail industries. Its software-defined solutions bridge the physical and digital worlds of cash and consumer transactions conveniently, securely and efficiently. As an innovation partner for nearly all of the world's top 100 financial institutions and a majority of the top 25 global retailers, Diebold Nixdorf delivers unparalleled services and technology that are essential to evolve in an 'always on' and changing consumer landscape.

Diebold Nixdorf has a presence in more than 130 countries with approximately 25,000 employees worldwide. The organization maintains corporate offices in North Canton, Ohio, USA and Paderborn, Germany. Shares are traded on the New York and Frankfurt Stock Exchanges under the symbol 'DBD'. Visit www.DieboldNixdorf.com for more information.

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