Kapsch Issues Statement on Favorable Ruling by US ITC Judge in 6C Standard Case

Kapsch TrafficCom North America’s Statement on ITC Judge’s Initial Ruling Rejecting Neology IP Claims against 6C

Kapsch TrafficCom North America (Kapsch) is pleased to report that the U.S. International Trade Commission (ITC) judge has ruled in favor of Kapsch in a legal action brought by Neology, Inc. seeking to prevent Kapsch from importing certain electronic tolling products using the ISO/IEC 18000-6C communications protocol (“6C Standard”). Kapsch believes that the 6C Standard is a truly open communications protocol, and the ITC’s initial determination in this case supports this position, stating that the patents asserted by Neology are invalid.

Chris Murray, President and CEO of Kapsch TrafficCom North America, says of the decision, “Kapsch will continue to advocate for open-communication and RFID standards. This is to the good of the consumers and the entire economy as it facilitates national electronic tolling interoperability.”

Kapsch has been a strong proponent of open standards and interoperability within the Electronic Tolling Solutions industry and marketplace. Open standard communication protocols are critical to meeting the goals of the U.S. Moving Ahead for Progress in the 21st Century Act (MAP-21), enacted in 2012, which mandates national agreement on tolling technologies and business practices to facilitate national electronic tolling interoperability. In support of this, Kapsch released and published its Open Standard Time Division Multiplexing (TDM) specification to the public in 2013, enabling open and free access to developers seeking to work with and implement the highly reliable and thoroughly tested TDM specification. The TDM protocol is currently utilized by the E-ZPass® Group, the largest interoperable tolling network in the country.

Kapsch believes that any protocol utilized in the industry, such as the 6C Standard should remain open. In the face of Neology’s various efforts to extract an undeserved multi-million dollar payout, Kapsch held its ground and stood up for the right to practice the 6C Standard in the tolling and RFID industry. Through Kapsch’s efforts, the U.S. Patent Office re-reviewed and already invalidated a large portion of the patent claims behind Neology’s 6C Standard proprietary assertions.

“Kapsch is a firm believer in open standards to facilitate national electronic tolling interoperability, and determined that ensuring a truly open ISO 18000-6C standard is critical if it is to play a role in achieving the MAP 21 goals,” said Chris Murray.

This decision continues Kapsch’s string of success against Neology’s baseless 6C Standard claims and confirms that the 6C Standard remains open for use by anyone in the tolling and RFID industry. Although Neology may appeal this decision to the full International Trade Commission, the ITC judge’s decision is consistent with previous decisions by the Patent Office. Kapsch is confident that outcome in its favor will be upheld by the Commission.

Kapsch TrafficCom is a provider of intelligent transportation systems in the fields of tolling, traffic management, smart urban mobility, traffic safety and security, and connected vehicles. As a one-stop solutions provider, Kapsch TrafficCom offers end-to-end solutions covering the entire value creation chain of its customers, from components and design to the implementation and operation of systems. The mobility solutions supplied by Kapsch TrafficCom help make road traffic safer and more reliable, efficient, and comfortable in urban areas and on highways alike while helping to reduce pollution.

Kapsch TrafficCom is an internationally renowned provider of intelligent transportation systems thanks to the many projects it has brought to successful fruition in more than 50 countries around the globe. The family-owned company is headquartered in Vienna, Austria and in 2017 celebrated 125 years of successfully developing and implementing new technologies for the benefit of its customers. As part of the Kapsch Group, Kapsch TrafficCom has subsidiaries and branches in more than 30 countries. It has been listed in the Prime Market of the Vienna Stock Exchange since 2007 (ticker symbol: KTCG). Kapsch TrafficCom currently has more than 4,800 employees, and generated revenue of approximately EUR 526 million in fiscal year 2015/16.

Press Contact:
Kapsch TrafficCom North America
Nicole Busse, Manager, Marketing & Communications
8201 Greensboro Drive, Suite 1002
McLean, VA 22102


Investor Contact:
Kapsch TrafficCom AG
Hans Lang, Investor Relations Officer
Am Europlatz 2, 1120 Vienna, Austria