The dry etching characteristics of indium-tin-oxide (ITO) films deposited on plastic substrates were studied using Ar/CH4 magnetized inductively coupled plasmas (MICP). When conventional inductively coupled plasmas (ICP) were used, the etch rates of ITO films were generally low. However, by using both the multidipole magnets and the axial electromagnets around the chamber wall of ICP, high ITO etch rates > 250 nm/min could be obtained at 90% Ar/10% CH, with the etch selectivity over photoresist higher than that of the ICP. Atomic force microscopy (AFM) measured as a function of Ar/CH4 showed smoother etched ITO surfaces for most of the etch conditions except for high CH4 conditions such as 70% Ar/30% CH4 which generate hydrocarbon polymer on the etched ITO surface. The surface composition characterized using x-ray photoelectron spectroscopy (WS) showed preferential losses of ITO components depending on the etch gas composition.