ATM Servicers Asks Court To BlockDiebold

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SAN FRANCISCO - (03/01/05) -- The Financial & SecurityProducts Association, which represents servicers of ATMs, saidMonday it has asked a federal court to block Diebold Inc. fromenforcing a policy prohibiting third-party maintenance companiesfrom buying any spare parts or diagnostic software from Diebold toservice Diebold ATMs. The ATM servicers' groups said the Dieboldpolicy has the effect of preventing third-parties from providingnecessary upgrades and other maintenance, including renovations forTriple DES compliance, on Diebold machines. The suit claims thatDiebold is requiring all owners/operators of its machines topurchase new ATM keyboards and encryption software from Diebold andhave a Diebold technician perform the installation. A Dieboldspokesman said the company was disappointed the servicers havedecided to continue to pursue the litigation. "We were insettlement talks and they broke off the talks," said JosephRichardson, of Diebold. "Their demands are unreasonable,"Richardson told The Credit Union Journal. "It's out company's dutyto vigorously protect our substantial investment in ourintellectual property while at the same time accommodating ourcustomers by allowing them to use anyone they choose to use toservice their equipment."

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