29
Jan
By Eric Schweibenz and Kate Cappaert
On January 15, 2015 and January 16, 2015, ALJ David P. Shaw issued two Orders (Nos. 20 and 22, respectively) granting two motions for summary determination in Certain Toner Cartridges and Components Thereof (Inv. No. 337-TA-918).By way of background, this investigation is based on a May 7, 2014 complaint filed by Canon Inc.; Canon U.S.A., Inc.; and Canon Virginia, Inc. (collectively, "Canon") alleging violation of Section 337 in the importation into the U.S. and sale of certain toner cartridges and components thereof, namely photosensitive drum units, that infringe one or more claims of U.S. Patent Nos. 8,280,278; 8,630,564; 8,682,215; 8,676,090; 8,369,744; 8,565,640; 8,676,085; 8,135,304; and 8,688,008. See our May 8, 2014 and June 11, 2014 posts for more details on the complaint and the notice of investigation, respectively.
According to Order No. 20, Canon moved for summary determination that the importation requirement of Section 337 is satisfied. Specifically, Canon sought a summary determination that the importation requirement was satisfied with respect to the accused products of the following respondents: Jiangxi Yibo E-Tech Co., Ltd., Aster Graphics Co., Ltd., Aster Graphics, Inc. (collectively, "Aster"), American Internet Holdings, LLC, The Supplies Guys, LLC (collectively "Supplies Guys"), Shenzhen ASTA Official Consumable Co., Ltd., Acecom, Inc. —San Antonio, Do It Wiser LLC, Grand Image Inc., Green Project, Inc., Nectron International, Inc., Online Tech Stores, LLC, Printronic Corporation, and Zinyaw LLC.
Aster stipulated that four ink cartridges were representative of their accused products. ALJ Shaw found that the evidence therefore demonstrated that the importation requirement was satisfied with respect to the Aster accused products. Supplies Guys stipulated that five ink cartridges were representative of their accused products. ALJ Shaw found that the evidence submitted showed that Supplies Guys sold the representative products to Canon's investigator in the U.S. between August 2013 and May 2014. Canon also submitted evidence that Supplies Guys sold two of the representative products to Canon's investigator in the U.S. in November 2013. Both of these products were made in China. ALJ Shaw found that the evidence therefore demonstrated that the importation requirement was satisfied with respect to the Supplies Guys accused products.
Respondents Shenzhen ASTA Official Consumable Co., Ltd., Acecom, Inc. —San Antonio, Do It Wiser LLC, Grand Image Inc., Green Project, Inc., Nectron International, Inc., Online Tech Stores, LLC, Printronic Corporation, and Zinyaw LLC (collectively, the "defaulting respondents") were found to be in default. Canon argued that these respondents waived their right to contest Canon's allegations, including the allegation that the importation requirement had been met. At this time, ALJ Shaw declined to grant summary determination as to the defaulting respondents.
Therefore, it was ALJ Shaw's initial determination that the importation requirement was satisfied as to the Aster and Supplies Guys respondents. Accordingly, the motion was granted in part.
According to Order No. 22, Canon moved for summary determination that it satisfies the economic prong of the domestic industry requirement. ALJ Shaw found that Canon satisfied the economic prong as it showed that its activities in the U.S. related to the asserted patents satisfy each of the three prongs of 19 U.S.C. § 1137(a)(3).
Canon relied on three separate facilities to establish that it has made a "significant investment in plant and equipment" in the U.S.: the CVI main campus, its main campus inventory and warehousing facilities, and its Workforce Development Center. The evidence showed that CVI's main campus has three primary facilities with 165 acres of land in Newport News, Virginia – a Main Plaint, an Advanced Cartridge Manufacturing Plant, and a Toner Plant. The evidence also showed that CVI maintains warehouse space in conjunction with its main campus facilities and that it operates a Workforce Development Center in Newport News, Virginia.
Canon also argued that it had engaged in "significant employment of labor or capital" in the U.S. Canon submitted evidence showing the number of personnel employed by CVI in the U.S and what percentage of those personnel were apportionable to the asserted domestic industry products. Canon also argued that it made a "substantial investment in its exploitation" of the asserted patents in the form of "CVI's product engineering, manufacturing engineering, and quality assurance activities" in the U.S.
Accordingly, it was the initial determination of ALJ Shaw that Canon satisfied the economic prong of the domestic industry requirement.