In a decision denying a second petition for inter
partes review (IPR), the Patent Trial and Appeal Board (PTAB)
elucidated the factors weighing against granting the
petitioner's request. The decision underscores the PTAB's
concern regarding serial attacks against a patent owner.
Nautilus Hyosung Inc. v. Diebold, Inc., Case No.
IPR2017-00426 (PTAB, June 22, 2017) (Benoit, APJ).
Diebold had earlier filed both a district court action and a US
International Trade Commission (ITC) complaint against Nautilus,
alleging infringement of the challenged patent. The patent was
directed to methods for sensing magnetic ink character recognition
lines on financial checks, such as those typically used by
automated teller machines (ATMs). Nautilus filed a first IPR
petition against the asserted claims, but the PTAB declined
institution. Nautilus then filed a second IPR petition against the
patent. In its preliminary response to the second IPR petition,
Diebold claimed that the second