"ECC 163" is not an encryption scheme.
There are some algorithms that work with elliptic curves. One of them is Elliptic Curve Diffie-Hellman (ECDH) which is a key agreement scheme. ECDH can be used as the basis for an asymmetric encryption scheme by coupling it with a symmetric encryption algorithm: to encrypt a piece of data, you run an ECDH instance with the ECDH public key of the intended recipient, and use the resulting shared secret as key in some symmetric encryption system such as AES.
While the principle is clear enough, saying "ECC 163" is nowhere sufficient to actually specify what the dongle is doing in practice. It is more a declaration of intent than anything else.
ECDH works in some elliptic curve. While generating random elliptic curve for cryptography is doable, it is complex and expensive, so (almost) nobody does that. Instead, systems that use elliptic curve (for ECDH, ECDSA...) rely on a handful of standard curves that have been generated once and for all. NIST has defined 15 standard curves, two of which having "163" in their name: B-163 and K-163. It is conceivable that by using the terminology "ECC 163", the vendor for your dongle really means to say that his hardware supports some EC-related cryptographic algorithm using one of these two curves.
If you want to interoperate with that dongle, then you need much more detailed information about what it does. Such information is obtained through documentation from the vendor, and/or analysis and trials, a process known as "reverse engineering" (there can be legal subtleties with regards to reverse engineering, depending on context and jurisdiction, so using vendor documentation is normally preferred; also, reverse engineering can be very time consuming, and may fail, especially for a physically hardened dongle).
