ITC finds in favour of Epson

Washington, DC, 19th October 2007, The United States International Trade Commission (ITC) has issued its final determination in the “337” case. The ITC has found that all accused cartridges infringe Epson’s patents. 

The ITC issued a Final Determination upholding, with slight modifications, the Initial Determination issued by the ITC Administrative Law Judge on March 30, 2007 that found all 11 patents belonging to Seiko Epson Corporation ("Epson") to be valid and all ink cartridges at issue to infringe one or more of the patents. Under the Final Determination, all of Epson's 11 patents were found valid and all accused cartridges still infringe one or more of the patents.

The ITC also issued a General Exclusion Order that prohibits all importation of infringing cartridges into the U.S., and also issued a Limited Exclusion Order that prohibits all importation of infringing cartridges by defaulting respondents. In addition, the ITC also issued Cease and Desist Orders that prohibit the sale and distribution of infringing cartridges in the U.S. by certain domestic respondents.

The General Exclusion Order prohibits the importation of all infringing ink cartridges not only by the companies who were respondents in the ITC investigation, but also by any importers of infringing ink cartridges.

The Final Determination is subject to Presidential Review for 60 days, to consider whether there are any policy reasons to disapprove the Final Determination. During the Presidential Review period, importers may continue to import infringing cartridges into the United States only if they post a bond of $13.60 per cartridge. However, if during the Presidential Review Period, the President does not disapprove the Final Determination, then all importers must cease importing infringing products entirely.

The background 

Epson filed a complaint with the Commission in March 2006, alleging that twenty four companies located in China, Germany, Hong Kong, Korea, and the United States were importing ink cartridges and components in violation of section 337 and that certain ink cartridges and components infringed a series of Epson patents. Prior to the ITC trial, Epson reached resolution with 18 respondents, including settlements where the respondents agreed to cease sales of infringing products. 

The ITC, “having examined the record in this investigation, including the submissions on review and responses thereto, the Commission has determined that there is a violation of section 337 with respect to claim 7 of the ‘957 patent; claims 18, 81, 93, 149, and 164 of the ‘439 patent, claims 83 and 84 of the ‘377 patent; claims 19 and 20 of the ‘148 patent; claim 1 of the ‘401 patent; claims 1, 2, 3, and 9 of the ‘917 patent; claims 1, 31, and 34 of the ‘902 patent; claims 1, 10, and 14 of the ‘422 patent; claim 1 of the ‘053 patent; and claim 21 of the ‘397 patent.”

The ITC has issued a general exclusion order, a limited exclusion order cease and desist orders covering a range of products covered in Epson’s complaint. 

A full copy of the determination is available at www.therecycler.com/premiumcontent

Ninestar commented: 

“Ninestar is disappointed in the decision and order issued by United States International Commission (ITC), the General Exclusion Order will bring very adverse influence to the whole compatible manufacturers throughout the world.

“At the same time, we are extraordinarily pleased that Ninestar’s newly developed products do not fall into the scope of Exclusion Order, and Ninestar will continue to provide related products and services for customers in the United States. 

“The decision of the Commission affirms the opinions of Ninestar concerning important patents. Ninestar expects to continue to appeal adverse aspects of the decision to the Court of Appeals for the Federal Circuit in order to strive for the related rights.

“Ninestar has requested the PTO to reexamine the invalidity of patents which were registered based on the prior art by Seiko Epson, the PTO has recently agreed to Ninestar's request to reexamine and will fully reexamine the related patents of Seiko Epson.” 

Epson commented:

” ‘Trust-based management’ is at the core of Epson's corporate management, and we run our company with care not to violate any laws or corporate ethics, and with full respect for the rights of others. At the same time, we expect others to show the appropriate respect for our rights as well. From the standpoint of protecting intellectual property rights, we will use legal measures to address those who use Epson's patented technology, trademarks, and other intellectual property without permission.”