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Chinese Cartridge Makers Facing 337 Case(China IT Watch Via Thomson Dialog NewsEdge)GUANGDONG, Mar 16, 2006 (SinoCast China IT Watch via COMTEX) --Chinese ink cartridge manufacturers, especially these located in Guangdong Province, are accused of right infringement in the United States recently, according to news from Guangdong Merchants Association (GMA). Three enterprises, in light of regulations of the United States' Tariff Act of 1930 and Section 337 of its amendment, filed a lawsuit against 24 Chinese, German, and South Korean cartridge makers in the United States International Trade Commission (ITC), saying that their products impinged on their nine patents. The three plaintiffs required ITC to launch the Section 337 investigations on these products involved and to issue the "General Exclusion Order". Once ITC asserted the right infringement and issued "General Exclusion Order", Chinese ink cartridge manufacturers will be forbidden to export their products to the United States forever. The three plaintiffs are Japan-based Epson and its two American subsidiaries. ITC made the announcement on February 17 formally. In accordance with the provision of Section 337, it will place the case on file for investigation within 30 days after receiving indictment from the three plaintiffs. Wo Kaili, president of GMA, said that if Chinese enterprises really exported products impinging on American patents to the United States, no matter directly or indirectly, the final result of the 337 investigation would have decisive impact on the distribution of their products in the American market. In addition, because the plaintiffs also lodged a lawsuit of patent infringement to the local court of Oregon State, Chinese enterprises' properties in the United States may be sealed up, detained, and frozen juristically. Ink cartridge manufacturers in Guangdong bear the brunt of the investigation. China's output of ink cartridge accounts for 60% of the total in the world, and nearly 80% are exported to other countries. Six out of China's eight biggest manufacturers are based in Guangdong, which output represents 75% of the total. So far, ITC has not filed the case officially yet. However, once the announcement is posted on Federal Register, the plaintiffs may start investigation and collect evidences. From the date of the announcement on Federal Register, ITC commences the investigation and sets the date for the completion of the investigation. The investigated should reply to the charge within 20 days after receiving the indictment. "Time is running short," said Cai Xiaomin, assistant to the president of GMA. On March 4, GMA, along with "Anti-dumping and 337 Investigation Legal Aid Center", held a meeting to discuss how to address the accusation. Present at the meeting also included a senior lawyer, the head of the WTO committee of the All China Lawyers Association, ink cartridge experts, and 12 ink cartridge makers in Guangdong Province. Chinese manufacturers should respond to the lawsuit actively, noted experts. Past 337 cases show that different from "Super 301" and "Special 301", Section 337 investigation is not a kind of commercial retaliation but includes certain procedures and mechanism protecting the legal right and interest of defendants. Therefore, these manufacturers need to have a general knowledge of these procedures and make use of these procedures to maintain their legal rights. In fact, half of the past 337 cases were solved through reconciliation. Experts also said that manufacturers had to join hands in facing the accusation, which can not only reduce expenses born by each manufacturer, but also be favorable for them to collect evidences. From Nanfang Daily, Page 1, Wednesday, March 15, 2006 [email protected] |