14
Jan
On January 11, 2011, Horizon Hobby, Inc. of Champaign, Illinois (“Horizon Hobby”) filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.

The complaint alleges that Koko Technology Ltd. of China (“Koko”), and Cyclone Toy & Hobby of China (“Cyclone”) unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain radio control hobby transmitters and receivers and products containing same that infringe U.S. Patent No. 7,391,320 (the ‘320 patent), U.S. Copyright Registration No. TX-7-226-001, and U.S. Trademark Reg. No. 3,080,770 for the mark SPEKTRUM.

According to the complaint, the ‘320 patent is directed to a method and system for controlling a radio control (R/C) device via a secure radio link where spread spectrum modulation is employed to provide a digital radio frequency link between a controller and an R/C device.  The controller is coupled with a transmitter module and a radio controlled device is coupled with a receiver module to provide an add-on upgrade capability.  The complaint states that spread spectrum transmitters and receivers are easier for consumers to use because they do not require selecting a specific frequency before using R/C hobby vehicles (such as hobby airplanes); they are safer because they are not prone to cross-control or interference, and they remove the artificial limit imposed by frequency boards, which would effectively limit the number of hobbyists who could participate in one location at the same time.

In the complaint, Horizon Hobby alleges that KoKo and Cyclone copy and export from China into the United States counterfeits of Horizon Hobby’s SPEKTRUM line of products, which utilize the spectrum modulation technology claimed in the ‘320 patent.  In addition to infringing the ‘320 patent and the SPEKTRUM trademark, the complaint alleges that the computer code embedded within KoKo’s and Cyclone’s counterfeit hobby receivers infringes Horizon Hobby’s above-identified copyright registration.

Regarding domestic industry, the complaint states that Horizon Hobby is one of the largest designers, manufacturers, and distributers of radio controlled hobby vehicles and accessories in the world, and it employs over 700 designers, engineers, administrators, manufacturers, and customer support staff in the United States.  The complaint further states that the ‘320 patent, as well as the copyright and trademark at issue in this matter are embodied within Horizon Hobby’s SPEKTRUM product line.  The complaint further asserts that Horizon Hobby made significant investment in labor and capital in the United States, and a substantial investment in exploitation of the ‘320 patent through research and development, engineering, licensing, product development, testing and quality control.

With respect to potential remedy, Horizon Hobby requests that the Commission issue a permanent general exclusion order (or in the alternative, a limited exclusion order) and a permanent cease and desist order directed to KoKo, Cyclone, and their related companies.