Diebold Nixdorf, Inc. v. Int'l Trade Comm'n

899 F.3d 1291
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 15, 2018
Docket2017-2553
StatusPublished
Cited by33 cases

This text of 899 F.3d 1291 (Diebold Nixdorf, Inc. v. Int'l Trade Comm'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diebold Nixdorf, Inc. v. Int'l Trade Comm'n, 899 F.3d 1291 (Fed. Cir. 2018).

Opinion

O'malley, Circuit Judge.

*1294 Appellants Diebold Nixdorf, Inc. and Diebold Self-Service Systems (together, "Diebold") appeal the International Trade Commission's ("ITC" or "Commission") finding that they violated § 337 of the Tariff Act of 1930 by importing components of automated teller machines ("ATMs") that infringe claims 1-3, 6, 8, and 9 of U.S. Patent No. 8,523,235 ("the '235 patent"). Diebold challenges the Commission's determination that these claims, all of which recite the term "cheque standby unit," are not invalid for indefiniteness. See Certain Automated Teller Machines, ATM Modules, Components There of, and Prods. Containing the Same , Inv. No. 337-TA-989, 2017 ITC LEXIS 1603 (USITC Mar. 13, 2017). It also challenges the Commission's construction of certain claim limitations and its application of those constructions to Diebold's accused ATM components and the asserted domestic industry products. See id.

We conclude that the term "cheque standby unit" in the '235 patent is a means-plus-function term subject to 35 U.S.C. § 112 , para. 6, which lacks corresponding structure disclosed in the specification. We therefore reverse the Commission's finding that Diebold violated § 337.

I. BACKGROUND

A. The '235 Patent

The '235 patent describes an ATM- i.e. , a "cash and cheque automatic depositing apparatus"-that is capable of performing banking transactions, and more particularly is "capable of automatically depositing a bundle of cashes and cheques inserted at once." '235 patent, col. 1, ll. 6-11. It accomplishes these goals by performing several steps: (1) separating deposited bundles into individual banknotes; (2) transferring those notes horizontally through the ATM; (3) verifying the authenticity or abnormality of each note; (4) sorting and processing the notes based on how each was verified; and (5) preparing the notes for depositing into storage safes. Id. col. 1, l. 40-col. 2, l. 3.

One component recited in each of the '235 patent's nine claims is a "cheque standby unit." The claims specify that the "cheque standby unit" is "placed in the main transfer path between the first gate and the second gate" and is "configured to hold the at least one authentic cheque to return the at least one authentic cheque to the user responsive to receiving user instructions cancelling depositing of the at least one authentic cheque." Id. col. 10, ll. 50-55.

The specification does not mention a "cheque standby unit," but instead references a "cheque temporary standby unit" in three portions of the detailed description. First, it explains that the ATM "includes a cheque temporary standby unit 120 formed on the main transfer path 106 a provided at a rear side of the first gate 112 , for temporarily stopping a transfer of authentic cheques," as well as "an endorsement printing unit 122 followed by the cheque temporary standby unit 120 on the main transfer path 106 a , for printing endorsement information on the authentic cheques according to printing instructions." Id. col. 2, l. 62-col. 3, l. 2. It later explains the function of the cheque temporary standby unit in more detail:

the cheque temporary standby unit 120 formed on a specific section of the main transfer path 106 a between the first gate 112 and the main transfer path 106 a temporarily stops a transfer of authentic cheques verified by the banknote verifying unit 110 . Before the cheques are subjected to an endorsement printing indicating that the rights relating to the cheques are transferred from customers to the bank, the cheques are held for the user as an owner to input an instruction. When a depositing instruction *1295 is inputted, the cheques are transferred to the endorsement printing unit 122 . On the contrary, when a depositing cancellation instruction is inputted, the cheques are transferred to the bundle insertion opening 102 or the abnormal banknote temporary storage 116 by a reverse driving of the main transfer unit 106 so that they can be returned to the user.
The endorsement printing unit 122 performs the endorsement printing only when the banknote verifying unit 110 verifies that the cheques are authentic and, also, when the cheque temporary standby unit 120 receives an owner's final depositing instruction.

Id. col. 5, ll. 40-59. Finally, the specification describes "a preferable entire operation" of the invention, in which checks that have been separated and transferred along the main transfer path "are temporarily held by the cheque temporary standby unit 120 formed on a specific section of the main transfer path 106 a ," where they are held until a user selects either a depositing consent or cancellation. Id. col. 7, l. 65-col. 8, l. 6. "Cheque temporary standby unit 120 " is depicted on the right-hand side of Figure 2:

The "cheque standby unit" limitation was added during prosecution to overcome prior art that purportedly permitted cheques to be stored in a safe, but did not disclose returning stored cheques to the user after the user canceled a deposit. J.A. 559-61, 564-65.

B. The ITC Proceedings

In February 2016, Intervenors Hyosung TNS Inc. and Nautilus Hyosung America Inc. (together, "Hyosung"), which own the '235 patent by assignment, filed a complaint with the ITC against Diebold, 1

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899 F.3d 1291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diebold-nixdorf-inc-v-intl-trade-commn-cafc-2018.