By Eric Schweibenz
On June 29, 2009, the Commission issued a Notice entitled “Issuance Of A General Exclusion Order; Termination Of The Investigation” in Certain Hair Irons and Packaging Thereof (Inv. No. 337-TA-637). 

By way of background, and as explained in our May 5 post, on March 14, 2008, the Commission instituted the investigation based upon a complaint filed by Farouk Systems, Inc. (“FSI”).  The respondents named in the Notice of Investigation were:  CHI Systems Singapore Pte. Ltd. of Singapore (“CHI Systems”); Princess Silk, LLC of Lake Forest, California (“Princess Silk”); Kamashi International of Hong Kong, China (“Kamashi”); Mount Rise, Ltd. of Dongguan, China (“Mount Rise”); and Dongguan Fumeikang Electrical Technology Co., Ltd. of Dongguan, China (“Dongguan Fumeikang”).  Dongguan Fumeikang and Princess Silk were terminated from the investigation on the basis of a consent order on May 21, 2008 and December 4, 2008, respectively.  On January 30, 2009, ALJ Carl C. Charneski granted FSI’s motion (Order No. 13) and found that Mount Rise, Kamashi, and CHI Systems were in default for failure to respond to the complaint and Notice of Investigation.

FSI also filed a motion for summary determination of violation against Mount Rise, Kamashi, and CHI Systems and declared that it would seek a general exclusion order (“GEO”) in connection with such motion.  ALJ Charneski issued an initial determination granting the motion for summary determination on March 10, 2009 (Order No. 14).  On April 22, 2009, the Commission determined not to review Order No. 14, and issued a notice requesting briefing on the ALJ’s recommended determination on remedy and bonding and the public interest.  FSI and the Commission Investigative Attorney filed submissions on May 8, 2009.  No other submissions were received.

Accordingly, the Commission determined that the appropriate form of relief is a GEO prohibiting the unlicensed entry of hair irons that infringe U.S. Registered Trademark No. 2,660,257 (“CHI®”).  The Commission further determined that the public interest factors did not preclude issuance of a GEO.  Lastly, the Commission determined that the amount of bond to permit temporary importation during the Presidential review period shall be 100 percent of the value of the hair irons that are subject to the order.