PUBLIC VERSION
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`Washington, D.C.
`
`In the Matter of
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`CERTAIN EARPIECE DEVICES AND
`COMPONENTS THEREOF
`
`Inv. No. 337-TA-1121
`
`Order No. 12: Initial Determination
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`On October 12, 2018, pursuant to Commission Rule 210.21, complainant Bose
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`Corporation ("Bose") and respondent Zeikos, Inc. ("Zeikos") filed a joint motion to terminate
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`this investigation as to Zeikos based on a Consent Order Stipulation, proposed Consent Order,
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`and a Settlement Agreement. Motion Docket No. 1121-15.
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`On October 23, 2018, the Commission Investigative Staff ("Staff') filed a response
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`supporting the motion. No other response was filed.
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`Commission Rule 210.21(a)(2) provides that "[a]ny party may move at any time to
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`terminate an investigation in whole or in part as to any or all respondents on the basis of a
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`settlement, a licensing or other agreement ... or a consent order, as provided in paragraphs (b), (c)
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`and (d) of this section." 19 C.F.R. § 210.21(a)(2). Commission Rule 210.21(c) provides in
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`relevant part that "[a]n investigation before the Commission may be terminated pursuant to
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`section 337(c) of the Tariff Act of 1930 on the basis of a consent order." 19 C.F.R. § 210.21(c).
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`Commission Rule 210.21(b)(1) provides in relevant part that "[a]n investigation before the
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`Commission may be terminated as to one or more respondents pursuant to section 337(c) of the
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`Tariff Act of 1930 on the basis of a licensing or other settlement agreement." 19 C.F.R. §
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`

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`210.21(b)(1).
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`Pursuant to Commission Rule 210.21(c), the movants state that "[o]ther than the
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`Settlement Agreement that is also the subject of the present motion, there are no other
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`agreements, written or oral, express or implied, between Bose and Zeikos concerning the subject
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`matter of this Investigation." Mot. at 3; 19 C.F.R. § 210.21(c). Pursuant to Commission Rule
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`210.21(b)(1), the movants state: "Settling Parties represent that there are no other agreements,
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`written or oral, express or implied, between the Settling Parties concerning the subject matter of
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`this Investigation." Mot. at 4; 19 C.F.R. § 210.21(b)(1).
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`The Consent Order Stipulation complies with the requirements of Commission Rule
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`210.21(c)(3). See Consent Order Stipulation, p. 1, TT 2, 3, 5, 6, 8-11 (complying with 19 C.F.R.
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`§ 210.21(c)(3)(i)(A)-(G)); id., IN 12, 13 (complying with 19 C.F.R. § 210.21(c)(3)(ii)(A)-(B));
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`see Staff Resp. at 2-5.
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`The proposed Consent Order complies with the requirements of Commission Rule
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`210.21(c)(4). See Proposed Consent Order, p. I, TT 1-4, 6-14; (complying with 19 C.F.R. §
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`210.21(c)(4)(i)-(xi)); see Staff Resp. at 6-9.
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`The Commission's Rules provide that in the case of a proposed termination by settlement
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`agreement, consent order, or arbitration agreement, the parties may file statements regarding the
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`impact of the proposed termination on the public interest, and the administrative law judge may
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`hear argument, although no discovery may be compelled, with respect to issues relating solely to
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`the public interest. The administrative law judge is directed to consider and make appropriate
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`findings "regarding the effect of the proposed settlement on the public health and welfare,
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`competitive conditions in the U.S. economy, the production of like or directly competitive
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`articles in the United States, and U.S. consumers." See 19 C.F.R. § 210.50(b)(2).
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`2
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`

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`The movants argue that "[i]t is in the interest of the public and administrative economy to
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`grant this motion to prevent further needless litigation." Mot. at 4. The Staff states that it
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`"believes that terminating this investigation as to Zeikos based on the Settlement Agreement,
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`Consent Order Stipulation or Proposed Consent Order would not be contrary to the public
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`interest." Staff Resp. at 11.
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`The undersigned does not find any evidence that terminating this investigation as to
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`Zeikos based on the Consent Order Stipulation, proposed Consent Order, and the Settlement
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`Agreement would be contrary to the public interest.
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`Accordingly, it is the initial determination of the undersigned that Motion No. 1121-15 is
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`granted. The procedural schedule is suspended as to Zeikos while the Commission review is
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`pending.
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`Pursuant to 19 C.F.R. § 210.42(h), this initial detel nination shall become the
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`determination of the Commission unless a party files a petition for review of the initial
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`determination pursuant to 19 C.F.R. § 210.43(a), or the Commission, pursuant to 19 C.F.R.
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`§ 210.44, orders on its own motion a review of the initial determination or certain issues
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`contained herein.
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`Issued: November 26, 2018
`
`David P. Shaw
`Administrative Law Judge
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`3
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`CERTAIN EARPIECE DEVICES AND COMPONENTS THEREOF
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`INV. NO. 337-TA-1121
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`PUBLIC CERTIFICATE OF SERVICE
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`I, Lisa R. Barton, hereby certify that the atteir dlOrd,,.r No. 12 (Initial Determination) has
`been served by hand upon the CommissiotirgesVatiAkttorney, Jeffrey Hsu, Esq., and the
`NOV '2 7 2018
`following parties as indicated, on
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`,
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`NP
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`Lisa R. Barton, S cretary
`U.S. International Trade Commission
`500 E Street SW, Room 112A
`Washington, DC 20436
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`FOR COMPLAINANT BOSE CORPORATION:
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`Andrew Kopsidas, Esq.
`Fish & Richardson P.C.
`1000 Maine Avenue, SW, 10th Floor
`Washington, DC 20024
`
`( ) Via Hand Delivery
`( Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`FOR RESPONDENT SUNVALLEY TEK INTERNATIONAL, INC.:
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`Kimberly A. Donovan, Esq.
`GCA Law Partners LLP
`2570 W. El Camino Real, Suite 400
`Mountain View, CA 94040
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`FOR RESPONDENT SPIGEN, INC.:
`
`Heedong Chae, Esq.
`Lucem, PC
`660 S. Figueroa St., Suite 1200
`Los Angeles, CA 90017
`
`( ) Via Hand Delivery
`(
`Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`( ) Via Hand Delivery
`Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`CERTAIN EARPIECE DEVICES AND COMPONENTS THEREOF
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`INV. NO. 337-TA-1121
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`RESPONDENT:
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`1MORE USA, Inc.
`10225 Barnes Canyon Road,
`Suite A202
`San Diego, CA 92121
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`RESPONDENT:
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`Beeebo Online Limited
`3837 Bay Lake Trail,
`Suite 115
`North Las Vegas, NV 89030
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`RESPONDENT:
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`Zeikos, Inc.
`19 Progress Street
`Edison, NJ 08820
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`RESPONDENT:
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`LMZT LLC
`303 Louisiana Avenue
`Brooklyn, NY 11207
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`RESPONDENT:
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`( ) Via Hand Delivery
`(\>0 Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`( ) Via Hand Delivery
`('9 Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`( ) Via Hand Delivery
`Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`( ) Via Hand Delivery
`() Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`Misodiko
`NanShanQu XiLiJieDao PingShanCun
`192 Dong 509
`ShenZhen, GuangDong, 518055, China
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`( ) Via Hand Delivery
`(..<) Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`2
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`CERTAIN EARPIECE DEVICES AND COMPONENTS THEREOF
`
`INV. NO. 337-TA-1121
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`RESPONDENT:
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`Phaiser LLC
`909 Silber Road
`Houston, TX 77024
`
`RESPONDENT:
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`Phonete
`A-201 No. 1 Qianwan Yilu
`Qianhai Shenggang Hezuoqu,
`Shenzhen, China
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`RESPONDENT:
`
`REVJAMS
`248 Lafayette Street
`New York, NY 10012
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`RESPONDENT:
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`V4ink, Inc.
`1251 S Rockefeller Avenue, Unit B
`Ontario, CA 91761-2238
`
`RESPONDENT:
`
`TomRich
`Room 842, 3B, HuaNanXiYuan,
`PingHu Town, LongGang District,
`Shenzhen, 518100, China
`
`( ) Via Hand Delivery
`() Express Delivery
`( ) Via First Class Mail
`( ) Other:
`
`( ) Via Hand Delivery
`( ',4 Express Delivery
`( ) Via First Class Mail
`( ) Other:
`
`( ) Via Hand Delivery
`(x) Express Delivery
`( ) Via First Class Mail
`( ) Other:
`
`( ) Via Hand Delivery
`( \\,4 Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`( ) Via Hand Delivery
`N .' Express Delivery
`( ) Via First Class Mail
`( ) Other:
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`3
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`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`Before The Honorable
`Administrative Law Judge David P. Shaw
`
`In the Matter of
`
`CERTAIN EARPIECE DEVICES AND
`COMPONENTS THEREOF
`
`Inv. No. 337-TA-1121
`
`JOINT MOTION OF COMPLAINANT AND RESPONDENT ZEIKOS, INC. TO
`TERMINATE INVESTIGATION BASED ON CONSENT ORDER STIPULATION,
`PROPOSED CONSENT ORDER, AND SETTLEMENT
`
`Pursuant to 19 U.S.C. §1337 (c) and 19 C.F.R. §§ 210.21(a)(2), 210.21(c)(1)(ii) and 210.21
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`(b), Complainant Bose Corporation ("Bose") and Respondent Zeikos, Inc. ("Zeikos"), hereby
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`jointly move to terminate this investigation as to Zeikos. First, the Court should terminate the
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`investigation as to Zeikos based on the attached Consent Order Stipulation (Exhibit A) and
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`Proposed Consent Order (Exhibit B). Second, the Court should terminate the investigation as to
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`Zeikos in view of a settlement agreement (the "Settlement Agreement") resolving the present
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`disputes between Bose and Zeikos (the "Settling Parties"). A true and correct copy of the
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`Settlement Agreement, redacted to protect the disclosure of confidential business information, is
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`attached to this submission as Public Exhibit C, and an unredacted version for service on the AUJ
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`and OUII is attached as Exhibit D.
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`I.
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`Zeikos Should Be Terminated from the Investigation Based on a Stipulated
`Consent Order
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`Zeikos stipulates to the entry of the Proposed Consent Order and requests that the Proposed
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`Consent Order be entered for the purpose of resolving the investigation.
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`

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`Commission Rule 210.21(c)(1)(ii) provides that, at any time prior to the commencement
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`of the hearing in an investigation, one or more of the respondents may move to terminate the
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`investigation by consent order. See 19 C.F.R. §210.21(a)(2) ("[a]ny party may move at any time
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`to terminate an investigation.., as to any or all respondents on the basis of... a consent order");
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`Comm'n Comments on Rule 210.21(c), 57 Fed. Reg. 52830, 52838 (Nov. 5, 1992). Commission
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`policy and the public interest generally favor settlements, which preserve resources for both the
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`Court and the private parties, and termination based on a settlement agreement/consent order is
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`routinely granted. See, e.g., Certain Safety Eyewear and Components Thereof Inv. No. 337-TA-
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`433, Order No. 37 at 2 (Nov. 3, 2000); Certain Synchronous Dynamic Random Access Memory
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`Devices, Microprocessors and Products Containing Same, Inv. No. 337-TA-431, Order No. 11 at
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`2 (July13, 2000); Certain Integrated Circuit Chipsets and Products Containing Same, Inv. No.
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`337-TA-428, Order No. 16 at 5 (Aug. 22, 2000); Certain Telephonic Digital Added Mainline
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`Systems Components Thereof and Products Containing Same, No. 337-TA-400, Notice To The
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`Parties at 3 (Feb. 12, 1998); Certain Screen Printing Machines, Vision Alignment Devices Used
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`Therein, and Component Parts Thereof Inv. No. 337-TA-394, Order No. 13 at 4 (Oct. 6, 1997).
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`This Court should grant the instant joint motion to terminate the investigation as to Zeikos
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`based on a stipulated consent order. In the Consent Order Stipulation, Zeikos represents that upon
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`entry of the Consent Order, Zeikos (including Zeikos's officers, directors, employees, agents, or
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`any entity or individual acting on Zeikos's behalf and with Zeikos's authority) will not sell for
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`importation, import into the United States, or sell after importation the iHip Warrior Bluetooth
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`Stealth Sports and Warrior Fiery Impulse Sports Headphones, including certain earpiece devices
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`and components thereof that infringe any of claims 1, 5, 7, 9 and 14 of U.S. Patent No. 9,036,852;
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`claims 1, 6, 7, and 8 of U.S. Patent No. 8,249,287; claims 1, 3, 4 and 6 of U.S. Patent No.
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`2
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`

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`8,311,253; claims 1, 3, 4, 6, 7 and 10 of U.S. Patent No. 9,042,590; and claims 1, 2, 3, 6, 8, 10 and
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`11 of U.S. Patent No. 9,036,853, directly or indirectly, and shall not aid, abet, encourage,
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`participate in, or induce the sale for importation, the importation, or the sale after importation
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`except under consent or license from Bose. Other than the Settlement Agreement that is also the
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`subject of the present motion, there are no other agreements, written or oral, express or implied,
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`between Bose and Zeikos concerning the subject matter of this Investigation.
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`This motion is also timely filed before the commencement of the hearing. Entry of this
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`consent order will also not impose an undue burden on the public health and welfare, competitive
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`conditions in the United States economy, production of like or directly competitive articles in the
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`United States, or U.S. consumers. 19 C.F.R. §210.5 (b)(2). Entry of the proposed Consent Order
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`would resolve any case or controversy that Bose has with respect to Zeikos and the public interest
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`would be served by avoiding needless litigation and conserving judicial resources.
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`Zeikos seeks to conclude this investigation without additional expense, risk, or disruption,
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`and the Stipulation, attached as Exhibit A, contains the admissions, waivers, statements, and other
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`requirements under Commission Rule 210.21(c)(3). The Court should therefore grant the motion
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`to terminate Zeikos on the basis of a stipulated consent order.
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`II.
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`The Investigation Should Be Terminated as to Zeikos Based on a Settlement
`Agreement
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`This Court and the public interest generally favor settlements, which preserve resources
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`for both the Commission and the private parties, and motions to terminate based on settlement
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`such as this are routinely granted. See, e.g., Certain Graphics Processors, DDR Memory
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`Controllers, and Products Containing the Same, Inv. No. 337-TA-1037, Order No. 26 (terminating
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`investigation as to one respondent based on settlement agreement); Certain RF Capable Integrated
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`Circuits and Products Containing the Same, Inv. No. 337-TA-982, Order No. 12 (August 2, 2016)
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`3
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`

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`(same); Certain Computing or Graphics Systems, Components Thereof and Vehicles Containing
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`Same, Inv. No. 337-TA-984, Order No. 33 (May 10, 2016) (same); Certain Communications or
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`Computing Devices and Components Thereof Inv. No. 337-TA-925, Order No. 37, (June 5, 2015)
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`(same).
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`The Settlement Agreement, which has been executed by the Settling Parties and is fully
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`effective as between them, completely resolves the dispute between the Settling Parties in this
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`Investigation. Pursuant to 19 C.F.R. §210.21(b)(1), the Settling Parties represent that there are no
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`other agreements, written or oral, express or implied, between the Settling Parties concerning the
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`subject matter of this Investigation. The Settling Parties agree that termination of this investigation
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`on the basis of the Settlement Agreement as to Zeikos does not constitute a determination as to the
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`violation of section 337 of the Tariff Act of 1930, including as to the merits of the claims or
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`defenses raised during this Investigation. See 19 C.F.R §§ 210.21(b).
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`In view of the Settlement Agreement, there no longer exists a basis upon which to
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`continue this Investigation as to Zeikos. Further, termination of this Investigation as to Zeikos at
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`this stage of the proceedings poses no threat to the public interest. It is in the interest of the
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`public and administrative economy to grant this motion to prevent further needless litigation. The
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`Court should therefore grant the motion to terminate Zeikos on the basis of a settlement
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`agreement.
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`III. Conclusion
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`For the forgoing reasons, Zeikos and Bose respectfully request that this Court grant this
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`joint motion to terminate the investigation as to Zeikos based on (1) entry of the attached Proposed
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`Consent Order; and (2) the accompanying Settlement Agreement.
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`4
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`

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`IV. Ground Rule 5(e) Certification
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`Counsel for Complainant and the representative of Zeikos certify that two business days
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`prior to filing this motion they have conferred with counsel for Respondents Spigen, Inc.,
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`Sunvalleytek International, Inc., the Office of Unfair Import Investigation ("OUII") and those
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`Respondents who are actively participating in this investigation. The contacted parties do not
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`oppose this motion. OUR will take a position after reviewing the papers.
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`Dated: October 12, 2018
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`Respectfully submitted,
`
`By: /s/ Jack Saideh
`
`Jack Saideh
`19 Progress St.
`Edison, NJ 08820
`
`President of Zeikos, Inc.
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`By: /s/ Andrew R. Kopsidas
`
`Andrew R. Kopsidas
`Thomas S. Fusco
`Matthew Mahoney
`Jessica Perry
`FISH & RICHARDSON P.C.
`1000 Maine Ave, S.W.
`10th Floor
`Washington, DC 20024
`Telephone: (202) 783-5070
`Facsimile: (202) 783-2331
`
`Counsel for Complainant
`Bose Corporation
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`5
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`CERTIFICATE OF SERVICE
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`I hereby certify that true and correct copies of the foregoing document: COMPLAINANT AND
`RESPONDENT ZEIKOS, INC. TO TERMINATE INVESTIGATION BASED ON
`CONSENT ORDER STIPULATION, PROPOSED CONSENT ORDER, AND
`SETTLEMENT has been served on this 12th day of October 2018, on the following:
`
`Via First Class Mail
`Via Hand Delivery
`Via Federal Express
`L Via Electronic Filing
`
`E Via First Class Mail
`Via Hand Delivery
`(two double sided paper copies)
`n Via Federal Express
`Via Electronic Mail
`
`Via First Class Mail
`n Via Hand Delivery
`fl Via Federal Express
`I Via Electronic Mail
`
`F Via First Class Mail
`ri Via Hand Delivery
`n Via Federal Express
`0 Via Electronic Mail
`
`Lisa R. Barton
`Secretary to the Commission
`U.S. International Trade Commission
`500 E Street, S.W.
`Washington, D.C. 20436
`
`The Honorable David P. Shaw
`
`Administrative Law Judge
`
`
`U.S. International Trade Commission
`500 E Street, S.W., Room 317
`
`Washington, D.C. 20436
`
`Pyong.YoonAusitc.gov
`
`Jeffrey Hsu, Esq.
`Office of Unfair Import Investigations
`
`U.S. International Trade Commission
`500 E Street, SW, Suite 401
`Washington, DC 20436-0003
`
`Jeffrey.Hsu(a),usitc.gov
`
`Heedong Chae
`Karen Kim
`Rae Chung
`Lucem, PC
`660 S. Figueroa St., Suite 1200
`Los Angeles, CA 90017
`hdchaeglucemlaw.com
`kkim@lucemlaw.com
`rchung(cOucenlaw.com
`
`Counsel for Respondent Spigen, Inc.
`
`6
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`

`Kimberly A. Donovan
`Limin Zheng
`Valerie M. Wagner
`GCA Law Partners LLP
`2570 W. El Camino Real, Suite 400
`Mountain View, CA 94040
`kdonovanggcalaw.com
`
`Counsel ,for Respondent Sunvalley Tek International, Inc.
`
`1MORE USA, Inc.
`10225 Barnes Canyon Rd., Suite A202
`San Diego, CA 92121
`
`APSkins
`140 Lakeside Ave, Suite A #334
`Seattle, WA 98122
`
`Beeebo Online Limited
`3837 Bay Lake Trail Suite 115
`North Las Vegas, NV 89030
`
`iHip
`19 Progress St.
`Edison, NJ 08820
`
`LMZT LLC
`303 Louisiana Ave
`Brooklyn, NY 11207
`
`Misodiko
`NanShanQu XiLiJieDao PingShanCun
`192 Dong 509
`ShenZhen GuangDong 518055 CN
`
`Phaiser LLC
`909 Silber Road
`Houston, Texas 77024
`
`7
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`I-1 Via First Class Mail
`Via Hand Delivery
`Lii Via Federal Express
`' Via Electronic Mail
`
`r
`Via First Class Mail
`Via Hand Delivery
`ri
`Via Federal Express
`pi
`Via Electronic Mail
`
`Via First Class Mail
`' ri
`Via Hand Delivery
`ri
`Via Federal Express
`I
`I Via Electronic Mail
`
`Via First Class Mail
`0
`Via Hand Delivery
`E
`Via Federal Express
`Via Electronic Mail
`U
`L
`Via First Class Mail
`I
`I Via Hand Delivery
`n fl Via
`Federal Express
`Via Electronic Mail
`Via First Class Mail
`rb1 n
`Via Hand Delivery
`n
`Via Federal Express
`E
`Via Electronic Mail
`a
`Via First Class Mail
`Li
`Via Hand Delivery
`E
`Via Federal Express
`Li
`Via Electronic Mail
`
`I Via First Class Mail
`C Via Hand Delivery
`n Via Federal Express
`fl Via Electronic Mail
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`

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`
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`Phonete
`A-201 No. 1 Qianwan Yilu
`
`
`Qianhai Shenggang hezuoqu, Shenzhen
`
`REVJAMS
`248 Lafayette St
`New York, NY 10012
`
`SMARTOMI Products, Inc.
`2760 E Philadelphia Street
`Ontario, CA 91761
`
`Sudio AB
`Upplandsgatan 7
`
`111 23 Stockholm, Sweden
`
`
`TomRich
`Room842, 3B, HuaNanXiYuan,
`PingHu town, LongGang District,
`Shenzhen, 518100 CN
`
`r1
`Via First Class Mail
`L Via Hand Delivery
`Via Federal Express
`Via Electronic Mail
`0
`Via First Class Mail
`I
`i Via Hand Delivery
`Via Federal Express
`Via Electronic Mail
`
`Via First Class Mail
`Via Hand Delivery
`n Via Federal Express
`n Via Electronic Mail
`
`A Via First Class Mail
`Via Hand Delivery
`Via Federal Express
`Via Electronic Mail
`
`A Via First Class Mail
`I
`i Via Hand Delivery
`n Via Federal Express
`_
`
`Via Electronic Mail
`
`/s/
`
`Judith Best
`Judith Best
`
`8
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`

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`Exhibit A
`Exhibit A
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`Before The Honorable
`Administrative Law Judge David P. Shaw
`
`In the Matter of
`
`CERTAIN EARPIECE DEVICES AND
`COMPONENTS THEREOF
`
`Inv. No. 337-TA-1121
`
`CONSENT ORDER STIPULATION BY ZEIKOS, INC.
`
`WHEREAS, Complainant Bose Corporation ("Bose") filed a Complaint before the United
`States International Trade Commission (the "Commission") on May 24, 2018, alleging unfair acts
`by Zeikos, Inc. ("Zeikos") in the importation into the United States, sale for importation into the
`United States, and sale after importation into the United States of earpiece devices and components
`thereof that infringe claims 1, 5, 7, 9 and 14 of U.S. Patent No. 9,036,852; claims I, 6, 7, and 8 of
`U.S. Patent No. 8,249,287; claims 1, 3, 4 and 6 of U.S. Patent No. 8,311,253; claims 1, 3, 4, 6, 7
`and 10 of U.S. Patent No. 9,042,590; and claims I, 2, 3, 6, 8, 10 and I i of U.S. Patent No.
`9,036,853 ("Infringed Bose Patents");
`
`WHEREAS, the Commission has instituted the above-captioned investigation under
`Section 337 of the Tariff Act of 1930 as amended (19 U.S.C. §1337), based upon the allegations
`in the Complaint filed by Bose;
`
`WHEREAS, Bose and Zeikos have executed a Settlement Agreement; and
`
`WHEREAS, Zeikos agrees to the entry of a Consent Order by the Commission in the form
`attached hereto as Exhibit A;
`
`NOW THEREFORE, pursuant to Commission Rule 210.21(c)(1)(ii) and (c)(3), Zeikos
`stipulates and agrees as follows in connection with Bose's Motion to Terminate Investigation as
`to Zeikos Based on Settlement Agreement and Consent Order:
`
`1.
`
`2,
`
`Zeikos is a corporation organized and existing under the laws of New York, having a
`principal place of business at 19 Progress St., Edison, NJ 08820.
`
`The Commission has in rem jurisdiction over Zeikos's earpiece devices and components
`thereof that are the basis of this Investigation, in personam jurisdiction over Zeikos for
`purposes of this Consent Order, and subject matter jurisdiction over this Investigation.
`
`

`

`3.
`
`4.
`
`5.
`
`6.
`
`7.
`
`8.
`
`9.
`
`10.
`
`11,
`
`12.
`
`13.
`
`Bose asserts, and Zeikos agrees, that Zeikos's earpiece devices and components thereof
`infringe the Infringed Bose Patents.
`
`Bose asserts, and Zeikos agrees, that the Infringed Bose Patents are valid and enforceable.
`
`Zeikos will not sell for importation, import, or sell after importation earpiece devices and
`components thereof that infringe the Infringed Bose Patents ("Subject Articles"), directly
`or indirectly, and shall not aid, abet, encourage, participate in, or induce the sale for
`importation, the importation, or the sale after importation of Subject Articles except under
`consent or license from Bose, or to the extent peunitted by the Settlement Agreement
`between Bose and Zeikos.
`
`Zeikos will cease and desist from importing, distributing, selling, or otherwise transferring
`Subject Articles in the United States, and the parties have agreed to a procedure regarding
`the disposition of existing U.S. inventories of the subject articles.
`
`Zeikos agrees to the entry of a Consent Order, by the Commission, in the form attached
`hereto as Exhibit A.
`
`Zeikos expressly waives all rights to seek judicial review or otherwise challenge or contest
`the validity of the Consent Order.
`
`Zeikos will cooperate with and will not seek to impede by litigation or other means the
`Commission's efforts to gather information under Subpart I of the Commission's Rules of
`Practice and Procedure, 19 C.F.R. Part 210.
`
`Enforcement, modification, or revocation of the Consent Order will be carried out pursuant
`to Subpart I of the Commission's Rules of Practice and Procedure, 19 C.F.R. Part 210,
`which is incorporated by reference herein.
`
`The Consent Order shall have the same force and effect and may be enforced, modified, or
`revoked in the same manner as is provided in section 337 of the Tariff Act of 1930 and 19
`C.F.R. Part 210 for other Commission actions, and the Commission may require periodic
`compliance reports pursuant to Subpart I of 19 C.F.R. Part 210 to be submitted by the
`person entering into the consent order stipulation.
`
`If any asserted claim of the Infringed Bose Patents has expired or is held invalid or
`unenforceable by a court or agency of competent jurisdiction or if any article has been
`found or adjudicated not to infringe the asserted right in a final decision, no longer subject
`to appeal, this Consent Order shall become null and void as to such expired, invalid, or
`unenforceable claim or as to any adjudicated article..
`
`Zeikos and their officers, directors, employees, agents and any entity or individual acting
`on their behalf and with their authority will not seek to challenge the validity or
`enforceability of the Infringed Bose Patents in any administrative or judicial proceeding to
`enforce the Consent Order.
`
`2
`
`

`

`14.
`
`The Consent Order shall be applicable and binding upon Zeikos, its officers, directors,
`agents, servants, and employees.
`
`15.
`
`This Consent Order Stipulation and the Consent Order are in the public interest.
`
`I declare under penalty of pedury under the laws of the United States of America that the foregoing
`is true and correct.
`
`IT IS SO STIPULATED
`Dated: September 26, 2018
`
`Zeikos, Inc.
`19 Progress St.
`Edison, NJ 0R810
`
`By:
`
`
`
`Title:
`
`
`
`3
`
`

`

`Exhibit
`
`

`

`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`Before The Honorable
`Administrative Law Judge David P. Shaw
`
`In the Matter of
`
`CERTAIN EARPIECE DEVICES AND
`COMPONENTS THEREOF
`
`Inv. No. 337-TA-1121
`
`CONSENT ORDER
`
`The International Trade Commission (the "Commission") has instituted the above-
`
`captioned investigation under Section 337 of the Tariff Act of 1930 as amended (19 U.S.C. §1337),
`
`based upon the allegations contained in the Complaint filed by Bose Corporation, which alleges
`
`violations of Section 337 by Respondent Zeikos, Inc. ("Zeikos") based upon the importation into
`
`the United States, the sale for importation into the United States, and/or the sale within the United
`
`States after importation of certain earpiece devices and components thereof that infringe claims 1,
`
`5, 7, 9 and 14 of U.S. Patent No. 9,036,852; claims 1, 6, 7, and 8 of U.S. Patent No. 8,249,287;
`
`claims 1, 3, 4 and 6 of U.S. Patent No. 8,311,253; claims 1, 3, 4, 6, 7 and 10 of U.S. Patent No.
`
`9,042,590; and claims 1, 2, 3, 6, 8, 10 and 11 of U.S. Patent No. 9,036,853 ("the Infringed Bose
`
`Patents").
`
`Respondent Zeikos has executed a Consent Order Stipulation in which it agrees to the entry
`
`of this Consent Order and to all waivers and other provisions as required by the Commission's
`
`Rules of Practice and Procedure, has executed a Settlement Agreement with Bose, and has
`
`consented to the filing of the Joint Motion to Terminate Investigation as to Zeikos Based on
`
`Settlement Agreement and Consent Order.
`
`

`

`NOW, THEREFORE, the Commission issues the following Consent Order:
`
`1.
`
`The Complainant in this Investigation is Bose Corporation, a Delaware corporation
`
`having a place of business at 100 The Mountain Road, Framingham, Massachusetts 01701
`
`("Bose").
`
`2.
`
`The Respondent covered by this Consent Order is Zeikos, a corporation organized
`
`and existing under the laws of New York, having a place of business at 19 Progress St., Edison,
`
`NJ 08820.
`
`3.
`
`The subject articles are earpiece devices and components thereof that were
`
`previously imported into the United States, sold for importation into the United States, and/or sold
`
`within the United States after importation and that are alleged to infringe the Infringed Bose
`
`Patents (the "Subject Articles").
`
`4.
`
`In its Complaint, Bose alleges that Zeikos sells for importation, imports, and/or
`
`sells in the United States after importation Subject Articles in violation of Section 337 of the Tariff
`
`Act of 1930 as amended (19 U.S.C. §1337) by reason of infringement of the Infringed Bose
`
`Patents.
`
`5.
`
`Zeikos has executed a Consent Order Stipulation and stipulates to the entry of this
`
`Consent Order.
`
`6.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(iii), upon entry of the Consent Order, Zeikos
`
`shall not sell for importation, import, or sell after importation Subject Articles, directly or
`
`indirectly, and shall not aid, abet, encourage, participate in, or induce the sale for importation, the
`
`2
`
`

`

`importation, or the sale after importation of Subject Articles except under consent or license from
`
`Bose, or to the extent permitted by the Settlement Agreement between Bose and Zeikos.
`
`7.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(iv), the parties have agreed to a procedure
`
`regarding the disposition of existing U.S. inventories of the subject articles.
`
`8.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(v), Zeikos shall cease and desist from
`
`importing and distributing Subject Articles in the United States.
`
`9.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(vi), Zeikos shall be precluded from seeking
`
`judicial review or otherwise challenging or contesting the validity of the Consent Order.
`
`10.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(vii), Zeikos shall cooperate with and shall not
`
`seek to impede by litigation or other means the Commission's efforts to gather information under
`
`Subpart I of the Commission's Rules of Practice and Procedure, 19 C.F.R. Part 210.
`
`11.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(viii), Zeikos and its officers, directors,
`
`employees, agents and any entity or individual acting on its behalf and with its authority shall not
`
`seek to challenge the validity or enforceability of the Infringed Bose Patents in any administrative
`
`or judicial proceeding to enforce the Consent Order.
`
`12.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(ix), if the Infringed Bose Patents expire, this
`
`Consent Order shall become null and void as to such expired patents.
`
`13.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(x), the Consent Order shall become null and
`
`void with respect to the Infringed Bose Patents if they are held invalid or unenforceable by a court
`
`or agency of competent jurisdiction or as to any articles that have been found or adjudicated not to
`
`infringe the Infringed Bose Patents in a final decision, no longer subject to appeal.
`
`14.
`
`Pursuant to 19 C.F.R. §210.21(c)(4)(xi), this Investigation is hereby terminated
`
`with respect to Zeikos; provided, however, that enforcement, modification, or revocation of this
`
`3
`
`

`

`Consent Order shall be carried out pursuant to Subpart I of the Commission's Rules of Practice
`
`and Procedure, 19 C.F.R. Part 210,
`
`Dated:
`
`BY ORDER OF THE COMMISSION
`
`Lisa Barton
`Secretary
`
`4
`
`

`

`Exhibit C
`Exhibit C
`
`

`

`SETTLEMENT AGREEMENT
`
`This Settlement Agreement ("Agreement") is made and entered into as of the date on
`which the last Party signs below (the "Effective Date"), by and between Bose Corporation
`("Bose"), having a place of business at 100 The Mountain Road, Framingham, Massachusetts
`01701, and Zeikos, Inc. ("Respondent"), having a place of business at 19 Progress St., Edison,
`NJ 08820. Bose and Respondent may be referred to herein individually as a "Party" or
`collectively as "Parties."
`
`RECITALS
`
`WHEREAS, on May 24, 2018, Bose filed a complaint in the United States International
`Trade Commission ("ITC") alleging that numerous respondents including Respondent have
`infringed certain Bose patents, including U.S. Patent Nos. 9,036,852; 9,036,853; 9,042,590;
`8,311,253; and 8,249,287 through importation of Accused Products (as defined below) into the
`United States, sale of Accused Products for importation, and/or sale (including distribution
`and/or promotion) of Accused Products in the United States;
`
`WHEREAS, on June 22, 2018, the Commissioners of the ITC unanimously voted to
`institute investigation 337-TA-1121 pursuant to Bose's complaint (the "ITC Action"); and
`
`WHEREAS, the Parties desire to resolve the dispute without litigation,
`
`TERMS
`
`In mutual consideration of the promises and obligations set forth below, the receipt and
`sufficiency of which is hereby acknowledged, the Parties agree as follows:
`
`1. DEFINITIONS.
`
`"Bose Affiliates" means the officers, directors, employees, successors and
`1.1
`assigns of Bose, together with any corporation or other business 'entity that directly or indirectly
`Controls, is Controlled by, or is under common Control with Bose.
`
`"Respondent Affiliates" means the officers, directors,. employees, successors and
`1.2
`assigns of Respondent, together with any corporation or other