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IPR Enforcement: ATMs, Mobile Device Holders, Hand Dryers

Wednesday, July 19, 2017
Sandler, Travis & Rosenberg Trade Report

ATMs. In investigation 337-TA-989 the International Trade Commission has made a final determination that the importation, sale for importation, and sale within the U.S. after importation of automated teller machines, ATM modules, components thereof, and products containing the same infringe patents asserted by Nautilus Hyosung Inc. and Nautilus Hyosung America Inc.

As a result, the ITC has issued a limited exclusion order prohibiting the unlicensed entry of infringing goods imported or manufactured by or on behalf of the respondent or any of its affiliated companies, parents, subsidiaries, or other related business entities, or their successors or assigns, except under license of the patent owner or as provided by law and except for service or repair articles imported for use in servicing or repairing subject goods. This exception does not permit the importation of ATMs to replace those that were previously imported.

The ITC has also issued cease and desist orders prohibiting the respondent from importing, selling, marketing, advertising, distributing, transferring (except for exportation), and soliciting U.S. agents or distributors for infringing goods in the U.S. However, this restriction does not apply if the patent owner authorizes or licenses such specific conduct in writing and it is related to the importation or sale of covered products by or for the U.S. or related to service or repair articles imported for use in servicing or repairing subject goods. This exception also does not permit the importation of ATMs to replace those that were previously imported.

Mobile Device Holders. In investigation 337-TA-1028 the ITC has determined that some defaulting respondents have imported, sold for importation, or sold within the U.S. after importation mobile device holders and components thereof that violated patents asserted by Nite Ize Inc. However, the ITC has not made findings related to remedy and bonding because there are genuine issues of material fact precluding a summary determination that a section 337 violation has occurred.

Hand Dryers. In patent infringement investigation 337-TA-1015 of hand dryers and housings for hand dryers the presiding administrative law judge has recommended that the ITC issue a general exclusion order and cease and desist orders. The ITC is now requesting comments by July 28 on the form of remedy, if any, that should be ordered; the effects of any such remedy on the public health and welfare, competitive conditions in the U.S. economy, U.S. production of like or directly competitive articles, and U.S. consumers; and the amount of the bond under which infringing imports could continue to enter the U.S. during the 60-day period the president has to review any ITC-ordered remedy (which the ALJ has recommended should be 100 percent).

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