In the Matter of
`
`CERTAIN LIQUID CRYSTAL EWRITERS
`AND COMPONENTS THEREOF
`
`Investigation No. 337-TA-1035
`
`Publication 4962
`September 2019
`U.S. International Trade Commission
`
`Washington, DC 20436
`
`

`

`U.S. International Trade Commission
`
`COMMISSIONERS
`
`Rhonda Schmidtlein, Chairman
`David Johanson, Vice Chairman
`Irving Williamson, Commissioner
`Meredith Broadbent, Commissioner
`
`Address all communications to
`Secretary to the Commission
`United States International Trade Commission
`Washington, DC 20436
`
`

`

`U.S. International Trade Commission
`
`Washington, DC 20436
`www.usitc.gov
`
`In the Matter of
`
`CERTAIN LIQUID CRYSTAL EWRITERS
`AND COMPONENTS THEREOF
`
`Investigation No. 337-TA-1035
`
`Publication 4962
`
`September 2019
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`Washington, D.C.
`
` In the Matter of
`
`
`CERTAIN LIQUID CRYSTAL
`EWRITERS AND COMPONENTS
`
`
`
`Investigation N0. 337-TA-1035
`
`THEREOF
`
`
`
`NOTICE OF COMMISSION FINAL DETERMINATION OF VIOLATION
`
`OF SECTION 337; TERMINATION OF INVESTIGATION;
`ISSUANCE OF LIMITED EXCLUSION ORDER AND
`
`CEASE AND DESIST ORDER
`
`AGENCY: US. International Trade Commission.
`
`ACTION: Notice.
`
`SUMMARY: Notice is hereby given that the US. International Trade Commission has
`found a violation of section 337 of the Tariff Act of 1930, as amended, 19 U S. C. § 1337
`(“section 337”)1n the above-captioned investigation. The Commission has determined to
`issue a limited exclusion order and cease and desist order. The investigation is
`terminated.
`
`
`
`General Counsel, U. S. International Trade Commission, 500 E Street, SW. Washington,
`I D. C 20436, telephone (202) 708—2301. Copies of non--conf1dential documents filed1n
`connection with this investigation are or will be available for inspection during official
`business hours (8:45 am. to 5:15 pm.) in the Office of the Secretary, US. International
`Trade Commission, 500 E Street, SW., Washington, D.C. 20436, telephone (202) 205-
`2000. General information concerning the Commission may also be obtained by
`accessing its Internet server (2‘th//www: usitc gov). The public record for this
`investigation may be Viewed on the Commission's electronic docket (EDIS) at
`htth//edis usitc. gov. Hearing-impaired persons are advised that information on this
`matter can be obtained by contacting the Commission’s TDD terminal on (202) 205-
`1810.
`
`' ‘SUPPLEMENTARYINFORMATION:’ The Coihrhis'sion instituted thiS'inVeSti'gation ’
`on January 13, 2017, based on a complaint filed by Kent Displays, Inc. of Kent, Ohio
`(“Kent Displays”). 82 FR 4418. The complaint alleges violations of section 337 of the
`Tariff Act of 1930, as amended, 19 U.S.C. § 1337 (“section 337”), in the importation into
`the United States, the sale for importation, and the sale within the United States after
`importation of certain liquid crystal eWriters and components thereof that infringe US.
`
`‘
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`Patent Nos. 7351,506 (“the ’506 patent”) and 8,947,604 (“the ’604 patent”). Id. The
`Commission 5 notice of1nvestigation named as respondents Shenzhen Howshow
`Technology Co'., Ltd., d/b/a Shenzhen Howshare Technology Co., Ltd., d/b/a Howshare
`(“Howshare’l’) of Shenzhen, China, and Shenzhen SUNstone Technology Co., Ltd., d_/b/a
`ine (“ine”) of Shenzhen, China. Id. The Office of Unfair Import Investigations is not
`participating in this investigation. Id.
`
`On April 11, 2017, the ALJ issued an ID finding ine in default for failing to
`respond to the complaint, the notice of investigation, and multiple discovery requests, and
`for failing to respond to an order to show cause why it should not be found in default.
`Order No. 9, not reviewed, Notice (May 11, 2017).
`
`On May 31, 2017, the ALJ issued an ID, granting Kent Displays’ motion to
`terminate the investigation with respect to Howshare based on a withdrawal of the
`complaint. Order No. 11 (May 31, 2017).
`
`On June 1, 2017, Kent Displays filed a declaration seeking a limited exclusion
`order (“LEO”) and a proposed cease and desist order (“CDO”) against the defaulted
`respondent ine pursuant to section 337(g)(1) and Commission Rule 210.16(c). The
`declaration contains Kent Displays’ views on remedy, the public interest, and bonding. A
`proposed LEO and CD0 were attached to the declaration.
`~
`
`On June 26, 2017, the Commission issued a notice determining not to review
`Order No. 11. Notice (Jun. 26, 2017); 82 FR 29930—31 (June 30, 2017). The notice also
`requested written submissions on the issues of remedy, the public interest, and bonding
`concerning the requested LEO and CD0 against ine. Id.
`
`On July 10, 2017, Kent Displays filed its_s_u_b_mission_on_r.emedy.,_the.public
`interest, and bonding. No other submissions were received.
`
`Having reviewed the submissions on remedy, thepublic interest, and bonding
`filed in response to the Commission’s Notice, and the information provided in the
`complaint, the Commission has determined, pursuant to section 337(g)(1), 19 U.S.C.
`§ 1337(g)(1), that the appropriate form of relief in this investigation is: (1) an LEO
`against ine, prohibiting the unlicensed-entry of liquid crystal eWriters and components
`thereof that infringe claims 1-5, 10, 11, 13-16, 18-23, 26, and 27 of the ’506 patent and/or
`claims‘ 1, 2, 9--11-,j 15—17, 21, and 22 cflthe ’604 patent and (2) an order that ine cease
`and desist from importing, selling, marketing, advertising, distributing, transferring
`. (except for exportation), soliciting United States agents or distributors, and aiding or
`abetting other entities in the importation, sale for importation, sale after importation,
`_ transfer (except for exportation), or distribution of liquid crystal eWriters and.
`components thereofthatinfringe claims 1—5,10,11,13-16,18-23, 26, and 27 ofthe ’506 A
`patent and/or claims 1, 2, 9- 11, 15- 17, 21, and 22 of the ’604 patent.
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`The Commission has determined that the public interest factors enumerated in
`section 337(g)(l), 19 U.S.C. §‘1337(g)(1), do not preclude the issuance of the LEO or
`CD0. The CommiSSion has determined that bOnding at ,100 percent of the entered value ‘
`of the covered products is required during the period of Presidential review, 19 U.S.C.
`§ 1337(1).
`
`The Commission’s order and opinion were delivered to the President and the
`United States Trade Representative on the day of their issuance. .
`
`The investigation is terminated.
`
`I
`
`The authority for the Commission’s determination is contained in section 337 of
`the TariffAct of 1930, as amended (19 U.S.C. 1337), and in part 210 ofthe
`Commission’s Rules of Practice and Procedure (19 CFR part 210).
`
`By order of the Commission.
`
`Issued: September 26, 2017
`
`Lisa R Barton
`
`Secretary to the Commission
`
`

`

`CERTAIN LIQUID CRYSTAL EWRITERS AND
`. COMPONENTS THEREOF
`
`Inv. No. 337-TA-1035
`
`PUBLIC CERTIFICATE OF SERVICE
`
`I, Lisa R. Barton, hereby certify that the attached NOTICE has been served by hand
`upon the following parties as indicated, on 9/26/2017
`
`@5773)
`
`Lisa R. Barton, Secretary
`US. International Trade Commission
`
`500 E Street, SW, Room 112
`Washington, DC 20436
`
`On Behalf of Comglainant Kent Displays, Inc.:
`
`.
`Michael L. Doane, Esq.
`- ADDUCI, MASTRIANI & SCHAUMBERG, LLP
`1133 Connecticut Avenue, NW
`
`Washington, DC 20036
`
`El Via Hand Delivery
`D Via Express Delivery
`Via First Class Mail
`
`El Other:
`
`Resgondents:
`
`Shenzhen SUNstone Technology Co., Ltd.
`d/b/a IQbe
`~—3/F, Bldg.—F.~No:'l 'Industry'Park, ‘”
`Guanlong Village, Xili, Shenzhen
`China
`
`El Via Hand Delivery
`_..El Via. Express Delivery
`Via First Class Mail
`
`Cl Other:
`
`

`

`.UNITED STATES INTERNATIONAL TRADE. COMMISSION .
`WASHINGTON, DC
`
`,
`
`
`In the Matter of
`
`
`
`CERTAIN LIQUID CRYSTAL
`eWRITERS AND‘COMPONENTS
`
`
`
`THEREOF
`
`Investigation No. 337-TA-1035
`
`LIMITEDE CL
`
`I N
`
`E
`
`The United States International Trade Commission (“Commission”) has determined that
`
`there is aviolation of Section 337 of the Tariff Act of 1930, as amended (19 U.S.C. § 1337), in
`
`the unlawful importation, sale for importation, or sale within the United States after importation
`
`by Respondent Shenzhen SUNstone Technology Co., Ltd. d/b/a ine (“in6”) of certain liquid
`
`crystal eWriters and components thereof covered by one or more of claims 1-5, 10, 11, 13-16,
`
`18-23, 26, and 27 ofU.S. Patent No. 7,351,506 (“the ”506 patent”) and claims 1, 2, 9-11, 15-17,
` 21, and/or 22 of US. Patent No. 8,947,604 (“the ’604 patent”) (Collectively, “Asserted
`
`Patents”).
`
`Having reviewed the record in this investigation, including the. written submission of the
`
`parties, the Commission has made its determination on the issues of remedy, public interest, and
`
`bonding. The Commission has determined that the appropriate form of relief is a limited
`
`exclusion order prohibiting the unlicensed entry of certain covered liquid crystal eWriters and
`
`. components thereof manufactured by. own behalf of iQhe or any, of its_affi1_iate_ companies, .
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`_
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`_
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`_
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`.
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`7
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`_
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`_
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`_
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`_
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`,
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`7
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`parents, subsidiaries, licensees, or other related business entities, or its successors or assigns.
`
`The Commission has determined that the public interest factors enumerated in 19 U.S.C.
`
`§ l337(g)(l) do not preclude issuance of the limited exclusion order, and that there shall be a
`
`l
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`

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`' bond of 100 percent of the entered value for all covered liquid crystal eWriters and components
`
`‘
`
`thereof during the period of Presidential review. -
`
`Accordingly,the Commission hereby ORDERS that:
`
`1. Liquid crystal eWriters and components thereof that are covered by one or more of
`
`claims 1-5, 10, l 1, 13-16, 18-23, 26, and 27 ofthe ’506 patent and claims 1, 2, 9-11,
`
`15-17, 21, and 22 of the ’604»patent and that are manufactured abroad by or on
`
`behalf of, imported by or on behalf of, or sold after importation by or On behalf of
`
`ine, or any of its affiliated companies, parents, subsidiaries, or other related
`
`business entities, or its successors or assigns, are excluded from entry for
`
`consumption into the United States, entry for consumption from a foreign—trade
`
`zone, or'withdrawal from a warehouse for consumption, for the remaining term'of
`
`the Asserted Patents/except under license of the patent owner or as provided by law.
`
`2. Notwithstanding paragraph 1 of this Order, the aforesaid liquid crystal eWriters and
`
`components thereof are entitled to entry into the United States for consumption, entry
`
` “for consumption from a foreign-trade zone, or withdrawal from a warehouseufor
`
`consumption under bond in the amount of 100 percent of the entered value of such -
`articles pursuant to subsection 0) of Section 337 ofthe Tariff Act of 1930, as amended
`
`(19 U.S.C. § 13370)), and the Presidential Memorandum for the United States Trade
`
`Representative of July 21, 2005 (70 Fed. Reg. 43251), from the day after this Order is
`
`received by the United States Trade Representative until such time as the United
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`_.States TrangeprescntatiVQnotificsthe. Commissiqnthat this Order is approved or.
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`.
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`. disapproved but, in any event, not later than sixty (60) days after the date of receipt of
`
`this Order.’
`
`. At the direction of US. Customs and Border Protection (“CBP”) and pursuant the
`
`procedures it establishes,'persons seeking to import liquid crystal eWriters and
`
`components thereof that are potentially subject to this Order may be required to
`
`certify that they are familiar with the terms of this Order, that they have made
`
`appropriate inquiry, and thereupon state that, to the best oftheir knowledge and
`
`belief, the products being imported are not excluded from entry-under paragraph 1 of
`
`this Order. At its discretion, CBP may require persons who have provided the
`
`certification described in this paragraph to fiarnish such records or analyses as are
`
`necessary to substantiate this certification.
`
`.
`
`In accordance with 19 U.S.C. § 1337(1), the provisions of this Order shall not apply to
`
`liquid crystal eWriters and components thereof that are imported by and for the use of
`
`the United States, or imported for and to be used for, the United States with the
`
`authorization or consent of the Government.
`
`. The Commission may modify this Order’in accordance with the procedures deScribed
`
`in Rule 210.76 of the Commission’s Rules of Practice and Procedure (19 CPR.
`
`§ 210.76).
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`

`

`6. The Secretary shall serve eopies of this Order upon each party of record in this
`
`investigation and CBP.
`
`7. Notice of this Order shall be published in the Federal Register.
`
`By order of the Commission
`
`
`
`Lisa R. Barton
`
`Secretary to the Commission
`
`Issued: September 26, 2017
`
`

`

`CERTAIN LIQUID CRYSTAL EWRITERS AND
`COMPONENTS THEREOF
`
`'
`
`Inv. No. 337-TA-1035
`
`PUBLIC CERTIFICATE OF SERVICE
`
`1, Lisa R. Barton, hereby certify that the attached LIMITED EXCLUSION ORDER has
`been served by hand upon the following parties as indicated, on 9/26/2017
`
`Wm
`
`Lisa R. Barton, Secretary
`US. International Trade Commission
`
`500 E Street, SW, Room 112
`Washington, DC 20436
`
`On Behalf Of Comglainant Kent Displays, Inc.:
`
`Michael L. Doane, Esq.
`ADDUCI, MASTRIANI & SCHAUMBERG, LLP
`1133 Connecticut Avenue, NW ,
`Washington, DC 20036
`
`Resgondents:
`
`Shenzhen SUNstone Technology Co., Ltd.
`d/b/a IQbe
`‘
`_
`.
`_
`3/F, Bldg. F. No. 1 Industry Park,
`Guanlong Village, Xili, Shenzhen
`China
`
`_
`
`.-
`
`_ w
`
`El Via Hand Delivery
`|:| Via Express Delivery
`Via First Class Mail
`[:1 Other“
`
`El Via Hand Delivery
`|:l.Via Express Delivery
`Via First Class Mail
`D Other'
`
`'
`
`,
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`
`WASHINGTON, DC
`
`In the Matter of
`
`
`
`CERTAIN LIQUID CRYSTAL
`eWRITERS AND COMPONENTS
`THEREOF
`
`
`Investigation No. 337-TA-1035
`
`_(_;EA§E AND DESIST ORDER
`
`IT IS HEREBY ORDERED THAT Shenzhen SUNstone Technology Co., Ltd. d/b/a
`
`ine, 3/F, Bldg. F, No. 1 Industry Park, Guanlong Village, Xili, Shenzhen, China, cease and
`desist from conducting any of the following activities in the United States: importing, selling,
`
`marketing, advertising, distributing, transferring (except for exportation), offering for sale,
`
`soliciting United States agents, retailers, resellers and distributors, or aiding or abetting other
`
`entities in the importation, sale for importation, sale after importation, transfer or distribution of
`
`liguid crystal eyritersand components thereof“covered by one _or moreofclaims_‘1-5, 10, 11, 13-
`16, 18-23, 26, and 27 ofUS. Patent No. 7,351,506 (“the ’506 patent”) and claims 1, 2, 9-11, 15-
`17, 21, and/or 22 ofUS. Patent No. 8,947,604 (“the ’604 patent”) (collectively, “Asserted
`Patent”) in violation of Section 337 of the Tariff Act of 1930, as amended (19 U.S.C. §1337).
`
`I. DEFINITIONS
`
`As used in this Order:
`
`(A)
`
`“Commission” shall mean the United States International Trade Commission.
`
`(B)
`
`“Complainant” shall mean Kent Displays, Inc., 343 Portage Boulevard, Kent, OH 44240.
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`

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`(C)
`“Respondent” refers to Shenzhen SUNstone Technology Co., Ltd. d/b/a ine, 3/F, Bldg.
`F, No. 1 Industry Park, Guanlong Village, Xili, Shenzhen, China.
`
`(D)
`
`“Person” shall mean an individual, or any non-governmental partnership, firm,
`
`association, corporation, or other legal or business entity other than Respondent or its majority
`
`owned or controlled subsidiaries, or its successors or assigns.
`
`(E)
`(F)
`
`“United States” shall mean the fifty states, the District of Columbia, and Puerto Rico.
`The terms “import” and “importation” refer to importation for entry for consumption
`
`under the Customs laws of the United States. .
`
`(G) p The term “covered products” shall mean liquid crystal eWriters and components thereof
`
`that infringe one or more of claims 1-5, 10, 11, 13-16, 18-23, 26, and 27 of the ’506 patent and
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`claims 1, 2, 9-11, 15-17, 21, and/or 22 ofthe ’604 patent.
`
`I
`
`II. APPLICABILITY
`
`The provisions of this Cease and Desist Order shall apply to the Respondent and to any of
`
`its principals, stockholders, officers, directors, employees, agents, licensees, distributors,
`
`
`cont‘r'ol'led"(WHetlEr by'stb‘CR ownerSIiip or ortheEWisef'andYnaj ority owned business entities,
`
`successors, and assigns, and to each of them, insofar as they are engaging in conduct prohibited
`
`. by Section III, infra, for, with, or otherwise on behalf of, Respondent.
`‘
`III. CONDUCT PROHIBITED
`
`The following conduct of Respondent in the United States is'prohibited by the Order. For
`
`the remaining term of the Asserted Patents, Respondent shall not:
`
`

`

`import, sell for importation, or sell after importation into the United States covered
`(A)
`products;
`'
`' “““
`L
`
`(B)
`
`market, distribute, offer for sale, or otherwise transfer (except for exportation) in the
`
`United States imported covered products;
`
`(C)
`
`advertise imported covered products;
`
`(D)
`
`solicit US. agents, retailers, resellers or distributors for imported covered products;‘or
`
`(E)
`
`aid or abet other entities in the importation, sale for importation, sale after importation,
`
`transfer or distribution of covered products.
`
`2
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`IV. CONDUCT PERMITTED
`
`Notwithstanding any other provision of this Order, specific conduct otherwise prohibited
`
`[by the terms of this Order shall be permitted if, in a written instrument, the owner of the Asserted
`
`Patents licenses or authorizes such specific conduct, or such specific conduct is related to the
`
`importation or sale of covered products by or for the United States.
`
`V. REPORTING
`
`
`Fer purposes ofthis reporting requirement, the reporting periods shall commence on
`
`January 1 of each year and shall end on the subsequent December 31. However, the first report
`
`required under this Section shall cover the period from the date of issuance of this Order through
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`December 31, 2017. This reporting requirement shall continue in force until such time as
`
`Respondent has truthfillly reported, in two consecutive timely filed reports, that it has no
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`inventory of covered products in the United States.
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`»
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`.Within thirtyr(30) days of the last dayof the reporting period, Respondent. shall report to »
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`,
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`.
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`7
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`the Commission: (a) the quantity in units and the value in US. dollars of covered products that
`
`Respondent has (i) imported and/or (ii) sold in the United States after importation during the
`
`reporting period, and (b) the quantity in units and value in US. dollars of reported covered
`
`4
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`products that remain in inventory in the United States at the end of the reporting period.
`
`When filing written submissions. Respondent must file the original document
`>-
`.
`electronically on or before the deadlines stated above and submit eight (8) true paper copies to the
`
`Office of the Secretary by noon the next day pursuant to section 210.4(f) of the Commission’s
`
`Rules of Practice and Procedure (19 C.F.R. § 210.4(f)). Submissions should refer to the
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`investigation number (“Inv. No. 337-TA-1035”) in a prominent place on the cover pages and/or
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`'
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`the first page. See Handbook for Electronic Filing Procedures,
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`https://www.usitc.gov/secretary/documents/handbook on filing procedurespdf.
`
`Persons with questions regarding filing should contact the Secretary (202-205-2000). If
`
`Respondent desires to submit a document to the Commission in confidence, it must file the
`
`original and a public version of the original with the Office of the Secretary and must servea
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`copy of the confidential version on Complainant’s counsel.1
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`Any failure to make the required report or the filing of any false or inaccurate report shall
`
`constitute a violation of this Order, and the submission of a false or inaccurate report may be
`
`— A—re-ferred—to—tvhevU.—S.—Departmen-t—of—J-ustice-aS'a-possi'b'le—criminal‘vi‘ol’ati'on‘of '1’8"U.’S’.C‘."§' 1001.
`
`RECORD KEEPING AND INSPECTION
`
`'VI.
`
`(A)
`
`For purposes of securing compliance with this Order, Respondent shall retain any and all
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`records relating to the sale, sale after importation, offer for sale, marketing or distribution in the
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`United States of covered products, made and received in the usual and ordinary course of
`
`business, whether in detail or in summary form, for a period of three (3) years from the close of
`
`"the‘fis‘cal‘year‘toWhitihtheypertain)"""
`
`H
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`1 Complainant must file a letter with the Secretary identifying the attorney to receive reports and
`bond information associated with this Order. The designated attorney must be on the protective
`order entered in the investigation.
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`

`(B)
`
`For purposes of determining or securing compliance with this Order and for no other
`
`purpose, and subject to any privilege recognized by the federal courts of the United States, duly -
`authorized representatives ofthe commission, upon reasonable written notice by the Commission
`
`or its staff, shall be permitted access and the right to inspect and copy in Respondent’s principal
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`office during office hours, and in the presence of legal coufisel, or other representatives if
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`Respondent so chooses, all books, ledgers, accounts, correspondence, memoranda, financial
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`statements, income statements, tax returns and other records and documents, both in detail and in
`
`summary form as are required to be retained by subparagraph VI(A) of this Order.
`
`SERVICE OF CEASE AND DESIST ORDER
`
`VII.
`
`Respondent is ordered and directed to:
`
`(A)
`
`Serve, within fifteen (15) days after the effective date of this Order, a copy of this Order
`
`upon each of its officers, directors, managing agents, agents and employees who have any
`
`responsibility for the importation, marketing, distribution or sale of imported covered products in
`
`the United States;
`
`(B)
`
`Serve, within fifteen (15) days after the succession of any persons referred to in the
`
`preceding paragraph, a copy of this Order upon each successor; and
`
`(C) Maintain such records as will show the name, title, and address of each person upon
`
`whom the Order has been served, as described in subparagraphs VII(A) and (B) of this Order,
`
`together with the date on which service was made.
`
`The obligations set forth in subparagraphs VII(B) and (C) shall remain in effect until the
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`'
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`‘ date 6f eipiration (5mg; patefit‘No‘s; 7,35i,506 3,138,947,604; '
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`'
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`'
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`‘
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`, VIII. CONFIDENTIALITY
`
`Any request for confidential treatment of information obtained by the Commission
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`

`

`pursuant to Sections V and VI of this Order should be in accordance with Commission rule 201.6,
`
`19 C.F.R. §201.6. For all reports for which confidential treatment is sought,-Respondent shall
`
`-
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`provide a public version of such report with confidential information redacted.
`
`IX. ENFORCEMENT
`
`Violation of this Order may result in any of the actions specified in section 210.75 of the
`
`Commission Rules of Practice and Procedure (19 C.F.R. §210.75), including an action for civil
`
`penalties in accordance with section 337(f) ofthe Tariff Act of 1930, as amended (19 U.S.C.
`
`§l337(f)), and any other action as the Commission may deem appropriate. In determining
`
`whether Respondent is in violation of this Order, the Commission may infer facts adverse to
`
`_ Respondent if Respondent fails to provide adequate or timely'info'rmationX. MODIFICATION
`
`The Commission may amend this Order on its own motion or in accordance with the
`
`procedure described in section 210.76 of the Commission’s Rules of Practice and Procedure (19
`
`C.F.R..§ 210.76).
`
`XI. BONDING
`
` The‘c‘onduct prohibi’ted‘by section—III of this ordEr may be continued during the-sixty-day
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`period in which this Order is under review by the United States Trade Representative, as
`delegated by the President (70 Fed. Reg. 43,251 (Jul. 21, 2005)), under a bond of 100 percent.
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`This bond provision does not apply to conduct that is otherwise permitted by section IV of this
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`Order. Covered products imported after the date of issuance of this Order are subject to the entry-
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`bond as set forth in the exclusion order issued by the Commission, and are not subject to this
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`..bondprovision..._
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`The bond is to be posted in accordance with the procedures established by the
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`Commission for the posting of bonds by complainants in connection with the issuance of
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`temporary exclusion orders. See 19 C.F.R. § 210.68. The bond and any accompanying
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`7
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`

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`‘ documentation are to be provided to and approved by the Commission prior to the
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`commencement of conduct that is otherwise prohibited by section III of this Order. Upon the -
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`v
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`Secretary’s acceptance of the bond, (a) the Secretary Will serve an acceptance letter'on all parties,
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`and (b) Respondent must serve a copy of the bond and accompanying documentation on
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`Complainant’ s counsel.2
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`The bond is to be forfeited in the event that the United States Trade Representative
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`approves this Order (.or does not disapprove it within the review period), unless (i) the US. Court
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`of Appeals for the Federal Circuit, in a final judgment, reverses any Commission final
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`determination and order as to Respondent on appeal, or (ii) Respondent exports‘or destroys the
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`products subj ect. to this bond and provides certification to that effect that is satisfactory to the
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`Commission.
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`This bond is to be released in the event the United States Trade Representative
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`disapproves this Order and no subsequent order is issued by the Commission and approved (or
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`not disapproved) by the United States Trade Representative, upon service on Respondent of an
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`‘ order'issued 'by't'he CoTnmissi'on based upon application therefore made 'by- Respondent to the
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`Commission.
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`By order of the Commission
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`Issued: September 26, 2017'
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`2 See Footnote 1.
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`WW
`
`Lisa» R. Barton
`
`Secretary to the Commission
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`

`

`CERTAIN LIQUID» CRYSTAL EWRITERS AND
`COMPONENTS THEREOF
`
`'
`
`Inv. N0. 337-TA-1035
`
`7
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`PUBLIC CERTIFICATE OF SERVICE
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`1, Lisa R. Barton, hereby certify that the attached CEASE AND DESIST ORDER has
`been served by hand upon the following parties as indicated, on 9/26/2017
`
`WW
`
`Lisa R. Barton, Secretary
`US. International Trade Commission
`500 E Street, sw, Room 112
`Washington, DC 20436
`
`On Behalf of Comglainant Kent Displays, Inc.:
`
`Michael L. Doane, Esq.
`ADDUCI, MASTRIANI & SCHAUMBERG, LLP
`1133 Connecticut Avenue, NW
`
`Washington, DC 20036
`
`El Via Hand Delivery
`13 Via Express Delivery
`Via First Class Mail
`
`[:1 Other:
`
`Resgondents:
`
`Shenzhen SUNstone Technology Co., Ltd.
`d/b/a IQbe
`7
`*-W3fFTB-ldngfN'or'l'Industry'Park,
`Guanlong Village, Xili, Shenzhen
`China
`'
`
`El Via Hand Delivery
`
`Cl Via Express Delivery
`[2 VigFirs-t- Class Mail .
`El Other:
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`
`Washington, DC.
`
`In the Matter of
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`
`
`Investigation No. 337-TA-1035
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`CERTAIN LIQUID CRYSTAL
`EWRITERS AND COMPONENTS
`
`
`
`THEREOF
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`'
`
`COMMISSION OPINION
`
`I.
`
`BACKGROUND
`
`The Commission instituted this investigation on January 13, 2017, based on a
`complaint filed by Kent Displays, Inc. ofKent, Ohio (“Kent Displaysj’). 82 Fed. Reg.
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`[4418. The complaint alleges violations of section 337 of the Tariff Act of 1930, as
`amended, 19 U.S.C. § 1337 (“section 337”), in the importation into the United States, the
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`sale for importation, and the sale within the United States after importation of certain
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`liquid crystal eWriters and compOnents thereofthat infringe certain claims of US. Patent
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`Nos. 7,351,566—E‘5thé "506 patent”) and 8,947,604 (“the ;60'4-patent”).l The Commission’s
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`notice of investigation named as respondents Shenzhen Howshow Technology Co., Ltd.,
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`d/b/a Shenzhen Howshare Technology Co., Ltd., d/b/a Howshare (“Howshare”) of
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`Shenzhen, China, and Shenzhen SUNstone Technology Co., Ltd., d/b/a ine (“ine”) of
`Shenzhen, China. The Office of Unfair Import Investigations is not participating in this
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`' investigation.
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`On April 11, 2017, the presiding administrative law judge (“ALJ”) issued an
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`I
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`'
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`x
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`initial determination (“ID”) finding ine in default for failing to respond to the complaint,
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`-. the notice of investigation, and multiple discovery requests, and for failing to respond to
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`1 an order to show cause why it should not be found in default. Order No. 9 (Apr. 11,
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`

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`2017). On May 10, 2017, the Commission determined not to review Order No. 9. Notice
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`2.
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`(May 11, 2017).
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`'
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`On May 31, 2017, the ALJ issued an ID, granting Kent Displays’ motion to
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`terminate the investigation with respect to 'Howshare based*on withdrawal of the
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`complaint. Order No. 11 (May 31, 2017).
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`On June 1, 2017, Kent Displays filed a declaration seeking a limited exclusion .
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`order (“LEO”) and a cease and desist order (“CDO”) against the defaulted respondent
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`ine pursuant to section 337(g)(1) and Commission Rule 210.16(c). The declaration
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`7 contains Kent Displays’ views on remedy, the public interest, and bonding. A proposed '
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`LEO and CD0 were attached to the declaration.
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`On June 26, 2017, the CommissiOn issued”21 notice determining not to review
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`Order No. 11. Notice (Jun. 26, 2017); 82 Fed. Reg. 29930-31 (Tune 30, 2017). The
`notice also solicited written submissions from the parties, interested gpvemment
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`agencies, and other interested parties on the issues of remedy, the public interest, and
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`bOnding concerning the requested LEO and CD0 against ine. Id.
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`On July 10, 2017, Kent Displays filed its submissionon remedy, the public I
`' interest, and bonding.1 No other submissions were received.
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`3 A.
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`Remedy
`
`I
`
`11.
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`DISCUSSION
`
`Section 337(g)(1) provides conditions and procedures applicable to investigations
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`_ _in which. one .or more parties are found in default. Thatprovision‘states as follows:_ _ L ,
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`.‘
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`.
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`.
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`.
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`,
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`_
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`__
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`.
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`_
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`_
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`_
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`1 Complainant Kent Displays, Inc.’s Submission on Remedy, the Public Interest, and
`Bonding (July 10, 2017) (“Comp. Br.’~’).
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`

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`If—
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`' (A)
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`a complaint is filed against a person under'thissection;
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`-
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`(B)
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`.
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`the complaint and a notice of investigation are served on the
`person;
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`(C)
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`(D)
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`the person fails to respond to the complaint and notice or otherwise
`fails to appear to answer the complaint and notice;
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`the person fails to show good cause why the person should not be
`7
`found in default; and
`
`(E)
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`the complainant seeks relief limited solely to that person;
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`the Commission shall presume the facts alleged in the complaint to be true
`and shall, upon request, issue an exclusion from entry or a cease and desist
`order, or both, limited to that person unless, after considering the effect of
`such exclusion or order upon the public health and welfare, competitive
`conditions in the United States economy, the production of like or directly
`competitiVe articles in the United States, and United States consumers, the
`Commission finds that such exclusion or order should not be issued.
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`19 U.S.C. § 1337(g)(1). There is no dispute that the conditions listed in section
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`337(g)(1)(A)-(E) have been satisfied with respect to ine. See Order No. 9.
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`1. LEO
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`KenfDisplays asserted in its complaint “that ine’s imported liquid crystal
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`eWriters infringe[] all asserted claims of each asserted patent.” Comp. Br. at 3 (citing
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`Complaint at W 44-46). Kent Display also “made assertions regarding and provided
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`information establishing the existence of a domestic industry related to both asserted
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`patents.” Id. (citing Complaint at W 58-66). Furthermore, Kent Displays “asserted and
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`provided information that established that ine sells for importation, imports, and/or sells
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`. after importationwithin the United States infringing liquid crystal eWriters.’? .Id.,(citing.
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`.
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`.
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`.
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`.
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`_
`
`,
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`.
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`.
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`.
`
`l
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`.
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`,
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`Complaint at-fl 52-55). Presuming the allegations in the complaint to be true, pursuant
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`to section 337(g)(l), the Commission finds that the evidence suppOrts Kent Display’s
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`

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`request for issuance of an LEO.
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`' 2. ' CDO
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`Complainant requests that the Commission issue a cease and desist order directed
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`against defaulting foreign respondent, ine. Comp. Br. at 3-4 (July 10, 2017). The
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`. Commission finds that the record supports the issuance of a cease and desist order against
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`ine.2
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`Section 337(g)(1) authorizes Commission action regarding alleged violations by
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`defaulting respondents and provides remedial authority directed to such defaulters
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`when relief is requested.3 19 U.S.C. § 1337(g)(l). In determining whether to issue a
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`cease and deSist order in default cases, under Section 337(g), the Commission
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`2 Chairman Schmidtlein supports issuance of the CD0 in this investigation for the
`reasons provided in her separate Views in Certain Electric Skin Care Devices, Brushes
`and Chargers Therefore, and Kits Containing the Same. See Inv. No. 337-TA-959,
`Comm’n Op., Separate Views of Chairman Schmidtlein (Feb. 13, 2017) (public
`version). In short, because remedial relief in this case is governed by section 337(g)(l),
`she finds that the mandatory‘‘shal_l upon request,_issue”Janguageeo-ntai—nedtherein '
`'
`requires the Commission to issue the requested CDO against ine. See id at 2-5; see also
`Certain Arrowheads with Deploying Blades and Components-Thereof, Inv. No. 337-TA-
`977, Comm’n Op., Dissenting Views of Chairman Schmidtlein (April 28, 2017) (public
`version). Congress’s use of this language indicates that the statute does not confer
`