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IPR Enforcement: Personal Transporters, Inflatable Products, Hoverboards

Monday, May 23, 2016
Sandler, Travis & Rosenberg Trade Report

New Petitions Filed. The International Trade Commission has received petitions requesting that it institute a Section 337 investigation regarding the following products.

- personal transporters, components thereof, and packaging and manuals therefor (filed May 18 on behalf of Segway Inc., DEKA Products Limited Partnership and Ninebot (Tianjin) Technology Co. Ltd.; respondents located in the U.S.)

- inflatable products and processes for making same (filed May 19 on behalf of Intex Recreation Corp. and Intex Marketing Ltd.; respondents located in China, Hong Kong and the U.S.)

Section 337 investigations primarily involve claims regarding intellectual property rights violations by imported goods, including the infringement of patents, trademarks and copyrights. Other forms of unfair competition involving imported products, such as misappropriation of trade secrets or trade dress and false advertising, may also be asserted. The primary remedy available in Section 337 investigations is an exclusion order that directs U.S. Customs and Border Protection to stop infringing imports from entering the U.S. In addition, the ITC may issue cease and desist orders against named importers and other persons engaged in unfair acts that violate Section 337, including selling infringing imported articles out of U.S. inventory.

Hoverboards. The ITC has instituted investigation 337-TA-1000 to determine whether imports of motorized self-balancing vehicles are violating Section 337 of the 1930 Tariff Act by reason of patent infringement, false advertising, misrepresentation and unfair competition. The products at issue are two-wheeled motorized vehicles that resemble skateboards.

Complainants Razor USA LLC, Inventist Inc. and Shane Chen request that after this investigation the ITC issue an exclusion order, which would direct CBP to prohibit the entry of infringing products into the U.S., and cease and desist orders, which would require the named respondents to cease actions that violate Section 337, including selling infringing imported articles out of U.S. inventory. The respondents in this investigation are located in Hong Kong, China and the U.S.

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