By Eric Schweibenz and John Presper
On August 3, 2017, the International Trade Commission (“the Commission”) issued its
opinion in
Certain Automated Teller Machines, ATM Modules, Components Thereof, and Products Containing the Same (Inv. No. 337-TA-989).
By way of background, this investigation is based on a complaint filed by Nautilus Hyosung, Inc. and Nautilus Hyosung America Inc. (collectively, “Nautilus”) alleging violation of Section 337 by Respondents Diebold Nixdorf, Inc. and Diebold Self-Service Systems (collectively, “Diebold”) in the importation into the U.S. and sale of certain automated teller machines, ATM modules, components thereof, and products containing same that infringe one or more claims of U.S. Patent Nos. 7,891,551 (“the ’551 patent”); 7,950,655 (“the ’655 patent”); 8,152,165 (“the ’165 patent”); and 8,523,235 (“the ’235 patent”).
See our
February 9, 2016 and
March 10, 2016 posts for more details on the complaint and Notice of Investigation, respectively. The ALJ previously granted motions by Nautilus to terminate the investigation as to all asserted claims of the ’551, ’165, and ’655 patents. After holding an evidentiary hearing in November 2016, the ALJ issued a final initial determination (“ID”) on March 13, 2017 finding a violation of Section 337 by Diebold in connection with the ’235 patent. Specifically, the ID found that the Commission has subject matter jurisdiction,
in rem jurisdiction over the accused products, and
in personam jurisdiction over Diebold. The ID also found that Nautilus satisfied the importation requirement, that the accused products directly infringed claims 1-3, 6, 8, and 9 of the ’235 patent, and that Diebold contributorily infringed such claims. The ID further found that Diebold failed to establish that the asserted claims of the ’235 patent are invalid for indefiniteness, anticipation, or obviousness. Finally, the ID found that Nautilus established the existence of a domestic industry that practices the ’235 patent. Accordingly, the ALJ recommended issuance of a limited exclusion order (“LEO”) prohibiting the importation of Diebold's automated teller machines, ATM modules, components thereof, and products containing the same that infringe the asserted claims of the ’235 patent. The ALJ also recommended issuance of cease-and-desist orders based on the presence of Diebold’s commercially significant inventory in the U.S.
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