Certain Ink Cartridges and Components Thereof I; Inv. No. 337-TA-1451 (Violation)

The Commission affirmed, with modified reasoning and supplemental findings, the ID's summary determination of a section 337 violation by the defaulting respondents for infringement of the asserted claims of the '347, '508, '037, '150 and '539 patents. It issued a general exclusion order, cease and desist orders against Mountain Peak and Straightouttaink, and a 100 percent bond. The GEO bars importation of infringing ink cartridges and components from any source, which reaches online sellers who hide their identities. The CDOs also reach the two California respondents' domestic inventory. Because the respondents defaulted and no petitions for review of the ID were filed, appeal prospects appear limited, though the opinion does not address appeal. Violation found: the Commission affirmed the ID granting summary determination of violation, with modified reasoning, for claims 8, 11 and 20 of the '347 patent, claims 7 and 17 of the '508 patent, claim 1 of the '037 patent, claim 1 of the '150 patent, and claims 1, 10 and 19 of the '539 patent. Indirect infringement: it supplemented the ID by finding that Ocbestjet Group and Tatrix contributorily infringe under 35 U.S.C. 271(c) by selling PCBs that form Group 2 cartridges, based on the ID's findings on knowledge and lack of substantial non-infringing use. Domestic industry: the economic prong is met under section 337(a)(3)(B) based on EPI's labor investments, which are significant under a holistic review because the vast majority of DI Products are made in the U.S. and the expenditures are significant relative to EPI's total costs. It took no position on sub-prong (A). Remedy: a GEO issues under section 337(g)(2) and (d)(2) because it is necessary to prevent circumvention of an LEO and because there is a pattern of violation and the source of infringing products is hard to identify. CDOs issue against Mountain Peak and Straightouttaink, which are U.S.-based defaulting respondents. Public interest and bond: the public interest factors do not preclude the remedies. The bond is set at 100 percent of entered value during Presidential review because pricing varies across products and respondents.