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IPR Enforcement: ATMs, Set-Top Boxes

Wednesday, February 01, 2017
Sandler, Travis & Rosenberg Trade Report

ATMs. In patent infringement investigation 337-TA-972 of automated teller machines, ATM modules, components thereof, and products containing the same, the International Trade Commission has determined to review in part a final initial determination that the importation, sale for importation, and sale within the U.S. after importation of these goods are violating patents asserted by Diebold Nexdorf Incorporated and Diebold Self-Service.

The presiding administrative law judge has recommended the issuance of a limited exclusion order and cease and desist orders against the respondents. The respondents, in turn, asserted that an exclusion order should include a certification provision and that any remedial orders should be tailored to allow repair of their existing ATMs in the U.S.

The ITC is now accepting public comments through Feb. 10 on (a) the form of remedy, if any, that should be ordered; (b) the effect of any such remedy on the public health and welfare, competitive conditions in the U.S. economy, U.S. production of articles that are like or directly competitive with those that are subject to investigation; and U.S. consumers; and (c) the amount of the bond under which infringing goods could continue to enter the U.S. during the 60-day period the president has to review any ITC-ordered remedy.

Set-Top Boxes. The ITC is requesting comments no later than Feb. 9 on any public interest issues raised by a complaint filed on behalf of OpenTV Inc., Nagra USA Inc., Nagravision SA, and Kudelski SA alleging that the importation, sale for importation, and sale within the U.S. after importation of digital television set-top boxes, remote control devices, and components thereof are violating Section 337 of the 1930 Tariff Act. Comments should address whether the issuance of the limited exclusion orders and cease and desist orders requested by the complainants would affect the public health and welfare in the U.S., competitive conditions in the U.S. economy, the production of like or directly competitive articles in the U.S., or U.S. consumers. In particular, the ITC is interested in comments that:

- explain how the articles potentially subject to the orders are used in the U.S.;

- identify any public health, safety, or welfare concerns in the U.S. relating to the potential orders;

- identify like or directly competitive articles that the complainants, their licensees, or third parties make in the U.S. that could replace the subject articles if they were to be excluded;

- indicate whether the complainants, their licensees, and/or third-party suppliers have the capacity to replace the volume of articles potentially subject to the requested orders within a commercially reasonable time; and

- explain how the requested orders would impact U.S. consumers.

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