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South Korea-based ATM manufacturer Nautilus Hyosung Inc. in 2007 split with Tranax Technologies Inc., the company's exclusive United States distributor, after Tranax failed to pay Nautilus Hyosung US$3 million (2.03 million euros) for ATMs and ATM parts, CardLine Global sister publication ATM&Debit News has learned. Nautilus Hyosung and Tranax will arbitrate the dispute in Seoul, South Korea, later this year, possibly in December, says Carlos Siewczynski, vice president of the North American retail self-service division at Nautilus Hyosung America Inc., the U.S.-based subsidiary of Nautilus Hyosung Inc. A judge from Singapore will settle the argument, Siewczynski says. The payment dispute between Tranax and Nautilus Hyosung is only one part of a complicated war between the companies. Tranax breached its contract with Nautilus Hyosung by removing Nautilus Hyosung's cash dispenser from its machines and installing it instead into Tranax ATMs, Siewczynski says. Tranax then sold the ATMs as original equipment, a violation of the agreement between the two companies, he alleges. Tranax installed its cash dispenser into Nautilus Hyosung ATMs, Nautilus says. According to the contract between the two companies, Tranax had the right to develop and manufacture its own ATMs, but removing the Nautilus Hyosung cash dispenser was not part of the agreement. Jeffrey Lee, Tranax director of product development, would not comment on allegations concerning the contract breach.
