The US ITC Officially Announced: Launching A 337 Investigation On Disposable E-cigarettes | Attached Is A List Of 35 Defendants

The US ITC officially announced: launching a "337 investigation" on disposable e-cigarettes | Attached is a list of 35 defendants

The United States International Trade Commission (USITC) voted to initiate an investigation of certain disposable vaporizer devices, the products of which are detailed in the Commission's Notice of Investigation, and identified a total of 35 defendants in this investigation.

 

On July 17, the United States International Trade Commission (USITC) voted to initiate an investigation of certain disposable vaporizer (e-cigarette) devices, the products of which are detailed in the Commission's Notice of Investigation.

 

The investigation is based on a complaint filed on June 11, 2024, and supplemented on June 12, 2024 and July 1, 2024 by RAI Strategic Holdings, Inc. of Winston-Salem, North Carolina, RJ Reynolds Vapor Company of Winston-Salem, North Carolina, RJ Reynolds Tobacco Company of Winston-Salem, North Carolina, and RAI Services Company of Winston-Salem, North Carolina.

 

It is worth noting that the aforementioned RAI Strategic Holdings, Inc, R.J. Reynolds Vapor Company, R.J. Reynolds Tobacco Company and RAI Services Company are all subsidiaries of Reynolds American Inc. (RAI).

 

The supplemented complaint alleges that the United States violated Section 337 of the Tariff Act of 1930 in the importation and sale of certain disposable vaporizer devices that infringe a patent asserted by the complainant. The complainant requests the U.S. International Trade Commission to issue a general exclusion order or a limited exclusion order and a cease and desist order.

 

The ITC has identified the following defendants in this investigation, for a total of 35 defendants:

 

Breeze Smoke LLC, West Bloomfield, MI

Dongguan (Shenzhen) Shikai Technology Co., Ltd., Guangdong Province, China

Vapeonly Technology Co. Ltd., San Po Kong, Kowloon, Hong Kong

iMiracle (Shenzhen) Technology Co. Ltd., Luohu District, Shenzhen, China

Guangdong Qisitech Co., Ltd., Dongguan, Guangdong Province, China

Fewo Intelligent Manufacturing Ltd., Dongguan City, Guangdong Province, China

Nevera (HK) Ltd., San Po Kong, Kowloon, Hong Kong

Guangdong Cellular Workshop Electronics Technology Co., Ltd, Dongguan City, Guangdong Province, China

Wonder Ladies Ltd., Tortola, British Virgin Islands

Sailing South Ltd., Tortola, British Virgin Islands

Marea Morada Ltd., Tortola, British Virgin Islands

Social Brands, LLC, Dallas, TX Zhuhai Qisitech Co., Ltd., Zhuhai, Guangdong Province, China Shenzhen Han Technology Co., Ltd., Shenzhen, Guangdong Province, China Palma Terra Ltd., Tortola, British Virgin Islands Shenzhen IVPS Technology Co., Ltd., Shenzhen, Guangdong Province, China Heaven Gifts International Ltd., San Po Kong, Kowloon, Hong Kong Maduro Distributors d/b/a The Loon, Minneapolis, MN Bidi V apor, LLC, Orlando, FL Kimsun Technology (HuiZhou) Co., Ltd., Shenzhen, Guangdong Province, China Shenzhen Yanyang Technology Co., Ltd., Shenzhen, Guangdong Province, China Pastel Cartel, LLC, Austin, TX American Vape Company, LLC, Pflugerville, TX Affiliated Imports, LLC, Austin, TX Shenzhen LC Technology Co., Ltd., Shenzhen, Guangdong Province, China LCF Labs , Inc., Ontario, CA

Shenzhen Kangvpe Technology Co., Ltd., Bao'an District, Shenzhen, Guangdong Province, China
Flumgio Technology Ltd., Tuen Mun, N.T., Hong Kong
Shenzhen Pingray Technology, Shenzhen, Guangdong Province, China
SV3, LLC d/b/a Mi-One Brands, Phoenix, AZ
Price Point Distributors Inc. d/b/a Price Point NY, Farmingdale, NY
Flawless Vape Shop Inc, Anaheim, CA
Flawless Vape Wholesale & Distribution Inc., Anaheim, CA
TheSy, LLC d/b/a Element Vape, Alhambra, CA
VICA Trading Inc. d/b/a Vapesourcing, Tustin, CA
By initiating this investigation (337-TA-1410), the ITC has not yet made any determination on the merits of the case. The ITC Chief Administrative Law Judge will assign the case to an ITC Administrative Law Judge (ALJ), who will schedule and conduct the evidentiary hearing. The ALJ will make a preliminary determination as to whether a violation of Section 337 has occurred; the preliminary determination will be subject to review by the Commission.

The ITC will make a final determination on the investigation as soon as possible. Within 45 days of the initiation of the investigation, the ITC will set a target date for completion of the investigation. The ITC's remedial order in a Section 337 case is effective on the date it is issued and becomes final within 60 days of issuance, unless the U.S. Trade Representative withholds it for policy reasons within the 60-day period.

Section 337 Investigations

A Section 337 investigation is an investigation conducted by the U.S. International Trade Commission (USITC) under Section 337 of the Tariff Act of 1930. Its primary goal is to address unfair import practices, particularly those involving infringement of U.S. intellectual property rights, including patents, trademarks, and copyrights.

1. Initiation of an investigation:

- Section 337 investigations are usually initiated by complaints filed by patent holders or other stakeholders in the United States. After receiving the complaint, the USITC will decide within 30 days whether to initiate an investigation.

- If the decision is to initiate an investigation, the USITC will assign an administrative law judge (ALJ) to the case and set the timeline and rules for the investigation.

2. Investigation process:

- During the investigation, the ALJ will hold an evidentiary hearing, where both parties can submit evidence, question witnesses, and make arguments.

- The ALJ will make a preliminary ruling to determine whether there is a violation of Section 337. The preliminary ruling will be submitted to the USITC for review.

3. Rulings and Remedies:

- If the USITC determines that there is a violation of Section 337, it can issue an Exclusion Order to prohibit the import of infringing products. In addition, it can issue a Cease and Desist Order to prohibit the sale of these products in the United States.

- Exclusion orders are divided into General Exclusion Orders and Limited Exclusion Orders. The former applies to all infringing products, while the latter only applies to specific defendants or specific products.

Differences from federal courts

- No damages: USITC cannot award damages like federal courts, but can issue exclusion orders more quickly.
- Time-tight: The processing time of 337 investigations is usually shorter, generally completed within 12 to 15 months.