`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`Before the Honorable Monica Bhattacharyya
`Administrative Law Judge
`
`In The Matter Of
`CERTAIN DISPOSABLE VAPORIZER
`DEVICES
`
`
`Investigation No. 337-TA-1410
`
`COMPLAINANTS’ MOTION FOR SUMMARY DETERMINATION, ECONOMIC
`PRONG OF DOMESTIC INDUSTRY
`
`GROUND RULE 3.2 CERTIFICATION
`Pursuant to Ground Rule 3.2, RAI Strategic Holdings, Inc. (“RAI”), R.J. Reynolds Vapor
`
`Company (“RJRV”), R.J. Reynolds Tobacco Company (“RJRT”), and RAI Services Company
`
`(“RAISC”) (collectively, “Reynolds” or “Complainants”) hereby certify they have made
`
`reasonable, good-faith efforts to resolve this matter with the other parties prior to filing this
`
`Motion. The private parties and Staff met and conferred regarding this Motion on January 31,
`
`2025. Respondents1 indicated they oppose the Motion. Staff indicated he would take a position
`
`on this Motion after reviewing the filed papers.
`
`1 The Respondents include Breeze Smoke, LLC; Dongguan (Shenzhen) Shikai Technology
`Co., Ltd.; Guangdong Qisitech Co., Ltd.; Fewo Intelligent Manufacturing Ltd.; Guangdong
`Cellular Workshop Electronics Technology Co., Ltd.; Zhuhai Qisitech Co., Ltd.; Shenzhen Han
`Technology Co., Ltd.; Shenzhen IVPS Technology Co., Ltd.; Maduro Distributors d/b/a The Loon;
`Shenzhen Yanyang Technology Co., Ltd.; Pastel Cartel, LLC; American Vape Company, LLC;
`Affiliated Imports, LLC; Shenzhen Kangvape Technology Co., Ltd.; Shenzhen Pingray
`Technology Co., Ltd.; SV3, LLC d/b/a Mi-One Brands; Price Point Distributors Inc. d/b/a Price
`Point NY; and TheSy, LLC d/b/a Element Vape.
`
`1
`
`PUBLIC VERSION
`
`

`

`MOTION
`Pursuant to Ground Rule 3.3 and Commission Rule 210.18, Reynolds respectfully moves
`
`for summary determination that the economic prong of the domestic industry (“DI”) requirement,
`
`as set forth in 19 U.S.C. §§ 1337(a), has been satisfied. The Commission already found that
`
`Reynolds’s domestic investments in just a subset of the very same DI Products established an
`
`economic DI in the 1199 Investigation. Moreover, in the TEO phase of this Investigation, the ALJ
`
`determined that “evidence shows past evidence of significant investment and unrebutted testimony
`
`that such investments are ongoing.” Order No. 28 at 87–88, Initial Determination Denying Motion
`
`for Temporary Relief dated November 19, 2024 (EDIS Doc. ID No. 837591). Now, in the
`
`permanent relief phase investigation, Respondents have not contested any of the underlying facts
`
`supporting Reynolds’s economic DI case. Moreover, only one out of eighteen participating
`
`Respondents (Kangvape) submitted a rebuttal expert report from Dr. McDuff on economic DI
`
`issues—a report that simply raises erroneous legal arguments, but does not raise any factual
`
`disputes.
`
`Based upon the documents, testimony, declarations, and expert analyses submitted
`
`herewith, and for all of the reasons set forth in the memorandum in support of this motion,
`
`Reynolds respectfully requests that the ALJ enter summary determination that Reynolds has
`
`satisfied the economic prong of the DI requirement under both Subprong (A) and Subprong (B).
`
`2
`
`PUBLIC VERSION
`
`

`

`Dated: February 6, 2025
`
`Respectfully submitted,
`
`
`
`Stephanie E. Parker
`JONES DAY
`1420 Peachtree Street, N.E.
`Suite 800
`Atlanta, GA 30309
`Tel: (404) 521-3939
`Fax: (404) 581-8330
`Email: separker@jonesday.com
`
`John A. Marlott
`JONES DAY
`110 North Wacker Drive
`Suite 4800
`Chicago, IL 60606
`Tel: (312) 782-3939
`Email: jamarlott@jonesday.com
`
`/s/ David M. Maiorana
`David M. Maiorana
`Ryan B. McCrum
`Kenneth S. Luchesi
`JONES DAY
`901 Lakeside Avenue
`Cleveland, OH 44114
`Tel: (216) 586-3939
`Fax: (216) 579-0212
`Email: dmaiorana@jonesday.com
`Email: rbmccrum@jonesday.com
`Email: kluchesi@jonesday.com
`
`Nicole M. Smith
`Alexis Adian Smith
`JONES DAY
`555 South Flower Street
`Fiftieth Floor
`Los Angeles, CA 90071
`Tel: (213) 489-3939
`Email: nmsmith@jonesday.com
`Email: asmith@jonesday.com
`
`Counsel for Complainants
`RAI Strategic Holdings, Inc.,
`R.J. Reynolds Vapor Company, and
`R.J. Reynolds Tobacco Company
`RAI Services Company
`
`3
`
`PUBLIC VERSION
`
`

`

`Certain Disposable Vaporizer Devices
`
`Investigation No. 337-TA-1410
`
`CERTIFICATE OF SERVICE
`
`I, Savanna Tess, hereby certify that on February 6, 2025 copies of the foregoing have been
`served upon the following parties as indicated:
`
`The Honorable Monica Bhattacharyya
`Administrative Law Judge
`U.S. International Trade Commission
`500 E Street, SW
`Washington, DC 20436
`
`The Honorable Lisa R. Barton
`Secretary
`U.S. International Trade Commission
`500 E Street, SW
`Washington, DC 20436
`
`Steve Shahida
`Vu Bui
`Office of Unfair Import Investigations
`U.S. International Trade Commission
`500 E Street, SW
`Washington, DC 20436
`
`Via Email:
`Bhattacharya337@usitc.gov
`
`Via EDIS
`
`Via Email:
`khashayar.shahida@usitc.gov
`Vu.Bui@usitc.gov
`
`Counsel for Respondents Breeze Smoke, LLC
`and Dongguan (Shenzhen) Shikai Technology
`Co., Ltd.
`
`Via Email:
`DG-Breeze-ptnt-ITC@goodwinlaw.com
`
`Patrick J. McCarthy
`Brian T. Burgess
`Andrew Kim
`Lori A. Gordon
`Amanda E. Stephenson
`Danielle Fong
`Ruchira De
`Jacqueline Odum
`GOODWIN PROCTER LLP
`1900 N Street, N.W.
`Washington, D.C. 20036
`Telephone: (202) 346-4000
`
`Molly Grammel
`Kathleen McGuinness
`GOODWIN PROCTER LLP
`100 Northern Avenue
`Boston, MA 02210
`Telephone: (617) 570-1000
`
`PUBLIC VERSION
`
`

`

`Sanjeet K. Dutta
`GOODWIN PROCTER LLP
`601 Marshall St.
`Redwood City, CA 94063
`Telephone: (650) 752-3100
`
`Adam J. Horowitz
`GOODWIN PROCTER LLP
`The New York Times Building
`620 Eighth Avenue
`New York, New York 10018-1405
`Telephone: (212) 813-8800
`
`Joseph A. Smith
`Eric Allen Zelepugas
`Andrew Himebaugh
`THOMPSON HINE LLP
`20 North Clark Street, Suite 3200
`Chicago, Illinois 60602-5093
`Phone: (312) 998-4240
`Eric N. Heyer
`Meixuan (Michelle) Li
`Joseph A. Smith
`Krupa Patel
`THOMPSON HINE LLP
`1919 M Street, NW
`Suite 700
`Washington, DC 20036
`Phone: (202) 331-8800
`Marla R. Butler
`Clint King
`THOMPSON HINE LLP
`Two Alliance Center
`3560 Lenox Road NE, Suite 1600
`Atlanta, Georgia 30326
`Phone: (404) 541-2900
`
`Counsel for Respondents Maduro Distributors,
`Inc. (d/b/a The Loon) and TheSy, LLC (d/b/a
`Element Vape)
`
`Via Email: th-337-1410@thompsonhine.com
`
`PUBLIC VERSION
`
`

`

`Counsel for Respondent SV3 LLC d/b/a Mi-One
`Brands
`
`Via Email:
`SV3-1410@sternekessler.com
`
`Daniel E. Yonan
`Uma N. Everett
`Kyle E. Conklin
`Kristina Caggiano Kelly
`Robert E. Niemeier
`Ryan C. Richardson
`STERNE, KESSLER, GOLDSTEIN &
`FOX,
`P.L.L.C.
`1101 K Street, NW, 10th Floor
`Washington, DC 20005
`Telephone: 202.371.2600
`
`Eric N. Heyer
`Michelle Li
`Joe Smith
`THOMPSON HINE LLP
`1919 M Street, N.W., Suite 700
`Washington, D.C. 20036-3537
`Telephone: 202.331.8800
`
`Clint King
`THOMPSON HINE LLP
`3560 Lenox Rd. NE, Suite 1600
`Atlanta, Georgia 30326
`Telephone: 404.407.3680
`
`Eric A. Zelepugas
`THOMPSON HINE LLP
`20 N. Clark Street, Suite 3200
`Chicago, IL 60602-5093
`Telephone: 312.998.4240
`
`Steven E. Adkins
`FISHERBROYLES, LLP
`1200 G Street N.W., Suite 800
`Washington, DC 20005
`Telephone: 202.669.9630
`
`
`
`
`
`
`
`
`
`PUBLIC VERSION
`
`

`

`Counsel for Respondents Pastel Cartel, LLC,
`American Vape Company, LLC, Affiliated
`Imports, LLC
`
`Via Email:
`FM-Pastel-1410@fostermurphy.com
`
`Email: KH-1410-Patent@khlaw.com
`Email: BochnerPastelItc@bochner.law
`
`Counsel for Shenzhen Han Technology Co.,
`Ltd.
`
`Via Email:
`SZ-HAN-AL-337-TA-1410@archlakelaw.com
`
`Barbara A. Murphy
`David F. Nickel
`Susan Koegel
`Matthew N. Duescher
`FOSTER, MURPHY, ALTMAN &
`NICKEL, PC
`1150 18th Street, N.W., Suite 775
`Washington, D.C. 20036
`Telephone: (202) 822-4100
`
`Azim Chowdhury
`Eric P. Gotting
`KELLER AND HECKMAN LLP
`1001 G Street NW, Suite 500 West
`Washington, DC 20001
`Telephone: (202) 434-4269
`
`Andrew Bochner
`Serge Krimnus
`Erick Robinson
`Meredith Lloyd
`BOCHNER PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018 Telephone:
`(646) 971-0685
`
`Gary M. Hnath
`MAYER BROWN LLP
`1999 K Street, NW
`Washington, DC 20006-1101
`Telephone: (202) 263-3040
`
`Alex Liang
`Hao Tan
`Shen Wang
`Peter J. Curtin
`ARCH & LAKE LLP
`203 N LaSalle Street, Suite 2100
`Chicago, IL, 60601
`Telephone: (312) 558-1368
`
`PUBLIC VERSION
`
`

`

`P. Andrew Riley
`Lei Mei
`Laurence M. Sandell
`Robert A. Hall
`Edward Naidich
`Guang-Yu Zhu
`Jiwei Zhang
`MEI & MARK LLP
`818 18th Street NW, Suite 410
`Washington, DC 20006
`Telephone: 888-860-5678
`Joseph V. Colaianni
`FISH & RICHARDSON P.C.
`1000 Maine Avenue, S.W., Suite 1000
`Washington, D.C. 20024
`Telephone: (202) 783-5070
`
`Carl E. Bruce
`FISH & RICHARDSON P.C.
`1717 Main Street, Suite 5000
`Dallas, Texas 75201
`Telephone: (214) 747-5070
`
`Elizabeth G.H. Ranks
`FISH & RICHARDSON P.C.
`One Marina Park Drive, Suite 1700
`Boston, MA 02210
`Telephone: (617) 542-5070
`
`Shawn Bastani
`Nicholas H. Wang
`FISH & RICHARDSON P.C.
`111 Congress Avenue, Suite 2000
`Austin, TX 78701
`Telephone: (512) 472-5070
`
`Jason Xu
`RIMON PC
`1050 Connecticut Ave NW, Suite 500
`Washington, DC 20036
`(202) 470-2141
`
`Eric C. Cohen
`RIMON PC
`P.O. Box B113
`150 Fayetteville St, Suite 2800
`Raleigh, NC 27601-2960
`
`Counsel for Respondents Zhuhai Qisitech Co.,
`Ltd., Guangdong Qisitech Co., Ltd.,
`Guangdong Fuwo Intelligent Manufacturing
`Co., Ltd., and Guangdong Cellular Workshop
`Electronics Technology Co., Ltd.
`
`Via Email:
`MeiMark-ITC-1410@meimark.com
`
`Counsel for Respondent
`Shenzhen Kangvape Technology Co., LTD.
`
`Via Email:
`SERVICEFishKangvapeReynoldsITC@fr.com
`
`Counsel for Respondent Shenzhen Pingray
`Technology Co., Ltd.
`
`Via Email:
`SZPingray337-1410@rimonlaw.com
`
`Counsel for Respondent Shenzhen Yanyang
`Technology Co., Ltd.
`
`Via Email:
`
`PUBLIC VERSION
`
`

`

`(984) 960-2860
`
`SZYanYang337-1410@rimonlaw.com
`
`Michael F. Heafey
`RIMON PC
`800 Oak Grove Avenue, Suite 250
`Menlo Park, CA 94025
`(650) 461-4433
`
`John Handy
`1765 Greensboro Station Place Tower I
`Suite 900
`McLean, VA 22102
`(703) 559-7360
`
`Jason Xu
`RIMON PC
`1050 Connecticut Ave NW, Suite 500
`Washington, DC 20036
`(202) 470-2141
`
`
`
`Erik J. Dykema, Esq.
`BOCHNER PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018
`(646) 971-0685
`
`Andrew D. Bochner, Esq.
`Bochner PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018
`(646) 971-0685
`
`Erick Robinson, Esq.
`BOCHNER PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018
`(646) 971-0685
`
`Serge Krimnus, Esq.
`BOCHNER PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018
`(646) 971-0685
`
`Meredith R. Lloyd, Esq.
`BOCHNER PLLC
`1040 Avenue of the Americas, 15th Floor
`New York, New York 10018
`(646) 971-0685
`
`Counsel for Respondent Shenzhen IVPS
`Technology Co., Ltd.
`
`Via Email:
`SZIVPS337-1410@rimonlaw.com
`
`Counsel for Respondent Price Point
`Distributors Inc.
`
`Via Email:
`ppd-itc@bochner.law
`
`
`
`
`
`
`
`
`/s/ Savanna Tess
`Savanna Tess
`
`PUBLIC VERSION
`
`

`

`
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`In the Matter of
`
`CERTAIN DISPOSABLE VAPORIZER
`DEVICES
`
`Inv. No. 337-TA-1410
`
`COMPLAINANTS’ MEMORANDUM IN SUPPORT OF THEIR MOTION FOR
`SUMMARY DETERMINATION, ECONOMIC PRONG OF DOMESTIC INDUSTRY
`
`
`
`
`
`
`
`
`
`PUBLIC VERSION
`
`

`

`
`I.
`II.
`
`III.
`IV.
`
`
`TABLE OF CONTENTS
`
`
`
`
`Page
`
`INTRODUCTION ............................................................................................................. 1
`BACKGROUND ............................................................................................................... 2
`A.
`Procedural History ................................................................................................. 2
`B.
`The Parties ............................................................................................................. 2
`C.
`Overview of the Asserted Patent And Technology ................................................ 3
`D.
`Reynolds’s Long-Standing And Undisputed Investments In The DI
`Products.................................................................................................................. 3
`1.
`Reynolds Has Invested In The U.S. Economy For Nearly 150
`Years .......................................................................................................... 3
`Reynolds’s Undisputed Investments In The DI Products .......................... 4
`2.
`LEGAL STANDARDS ..................................................................................................... 5
`ANALYSIS ........................................................................................................................ 6
`A.
`Reynolds’s Investments In Plant and Equipment Satisfy Subprong A And
`The Economic DI Requirement ............................................................................. 7
`1.
`Reynolds’s Undisputed Plant And Equipment Investments ...................... 7
`2.
`Reynolds’s Plant And Equipment Investments Are Cognizable ............... 8
`Reynolds’s Past And Ongoing Investments In The VUSE
`(a)
`DI Products (Including Ciro & Solo G1) Are Cognizable ............. 8
`Reynolds’s Investments In E-Liquid Are Cognizable ................. 11
`(b)
`Reynolds’s Plant And Equipment Investments Are Significant .............. 13
`Reynolds’s P&E Investments Are Quantitatively
`(a)
`Significant .................................................................................... 13
`Reynolds’s P&E Investments Are Qualitatively Significant ....... 16
`(b)
`Reynolds’s Significant Investments In Labor And Capital Independently
`Satisfy Subprong B And The Economic DI Requirement ................................... 16
`1.
`Reynolds’s Undisputed Labor And Capital Investments ......................... 16
`Research & Development ............................................................ 17
`(a)
`(1)
`Discovery, Design, and Development ............................. 17
`(2)
`Product Stewardship, Integrity, & Regulatory
`Compliance ...................................................................... 19
`(b) Manufacture, Assembly, And Production .................................... 19
`Quality Control ............................................................................ 20
`(c)
`
`B.
`
`3.
`
`
`
`
`
`i
`
`
`
`PUBLIC VERSION
`
`

`

`
`TABLE OF CONTENTS
`(continued)
`
`
`
`Page
`
`2.
`
`3.
`
`Reynolds’s Labor And Capital Investments, Including Reynolds’s
`PMTA Investments, Are Cognizable ....................................................... 21
`Regulatory Compliance Investments Are Cognizable ................. 22
`(a)
`(b)
`Reynolds’s PMTA Investments Are Ongoing And
`Coextensive With Its Design And Development Of The DI
`Products........................................................................................ 23
`Reynolds’s Activities Are More Than A “Mere Importer” ......... 25
`(c)
`Reynolds’s Labor And Capital Investments Are Quantitatively and
`Qualitatively Significant .......................................................................... 27
`Reynolds’s Substantial Investments With
`Separately Satisfy The
`Economic DI Requirement .................................................................................. 28
`At Minimum, An Order Establishing Facts Is Warranted (§ 210.18(e)) ............. 30
`D.
`CONCLUSION ................................................................................................................ 30
`
`C.
`
`V.
`
`
`
`
`
`ii
`
`
`
`PUBLIC VERSION
`
`

`

`PUBLIC VERSION
`
`
`
`TABLE OF AUTHORITIES
`
`
`
`Page
`
`
`
`CASES
`
`
`
`
`
`
`
`
`
`Certain Beverage Dispending Systems and Components Thereof,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1130, EDIS Doc. ID No. 706256, Comm’n Op. (U.S.LT.C.
`
`
`
`
`Mar. 26, 2020).........cccccceccccceeccescececeeeeeeeseceaeeneeeaeecseeseceaecuaecaaccasecaeeesesecsaeeseeeaeeeseesseeaeenareneeenees 12
`
`
`
`
`
`
`
`Certain Botulinum Toxin Products,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1145, EDIS No. 730453, Comm’n Op. (Jan. 13, 2021) 0.00.0. 26
`
`
`
`
`
`
`
`
`
`
`Certain Carburetors & Prods. Containing Such Carburetors,
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1123, EDIS Doc. ID No. 692517, Comm’n Op. (U.S.LT.C.
`
`
`
`
`
`Oct. 28, 2019) ooo. .eececccccccecceccesecesceseeceeeeseesecseceaeseaceaeeceeeeeceneceaeesaeeseeeseeaeeseceaeenseeneeeeeeseenes 14,15
`
`
`
`
`
`
`
`
`
`
`
`Certain Cartridgesfor Electronic Nicotine Delivery Sys. & Components Thereof,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1141, EDIS Doc. ID No. 685251, Order No. 38 (U.S.LT.C.
`
`
`
`
`AUG. 14, 2019) ooo cece cece cece ceccececeeeeeceseceaeceeeeaeeceeeseeesecnaccaaccaeceaeeseceseceaceaeeeaeeeseeeseeaeeeseesseaees 22
`
`
`
`
`
`
`
`
`
`Certain Compact Wallets and Components Thereof,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-1355, Comm’n Op. (U.S.1.T.C. Aug. 13, 2024)... eee 10, 11, 15
`
`
`
`
`
`
`
`
`
`
`
`Certain Computer Network Security Equipment and Systems, Related Software,
`
`
`
`
`
`
`Components Thereof, and Products Containing Same,
`
`
`
`
`
`
`
`
`
`
`
`Inv. 337-TA-1314, EDIS No. 803666, ID (Aug. 8, 2023)..........eccccceecceecceeceeceeseeeeeeeenereneeeees25
`
`
`
`
`
`
`Certain DC-DC Controllers,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-698, Order No. 38, 2010 WL 4780034 (U.S.LT.C. July 2,
`
`
`COccccopuseceneanammeemcerermemenenemememmemnerenmeceemeereneemeant 6
`
`
`
`
`
`
`
`Certain Doxorubicin & Preparations Containing Same,
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-300, 1990 WL 710463 (U.S.LT.C. May 21, 1990).........0.::cccccceseeeeeeeees 23
`
`
`
`
`
`
`
`
`
`
`
`Certain Drill Bits and Products Containing the Same,
`
`
`
`
`
`
`
`
`
`
`
`
`Inv. No. 337-TA-844, USITC Pub. 4818, ID (U.S.LT.C. July 10, 2012) 00.00 5
`
`
`
`
`
`
`
`
`
`
`Certain Electronic Devices, Including Streaming Players, Televisions, Set Top
`
`
`
`
`
`
`Boxes, Remote Controllers, and Components Thereof,
`
`
`
`
`
`
`
`
`
`
`Inv. 337-TA=1200) EDIS No: 7476609, ID (Jul. 23. 2021) ossccssccscwscsscsssesssavssarosaveserssassauses24
`
`
`
`ill
`
`
`PUBLIC VERSION
`
`

`

`
`TABLE OF AUTHORITIES
`(continued)
`
`
`
`Certain Electronic Nicotine Delivery Sys. & Components Thereof,
`Inv. No. 337-TA-1139, EDIS Doc. ID No. 697216, Final Initial Determination
`(U.S.I.T.C. Dec. 13, 2019), EDIS Doc. ID No. 709572, Comm’n Opinion
`(U.S.I.T.C. May 5, 2020) .........................................................................................................22
`
`Page
`
`
`
`Certain Magnetic Tape Cartridges & Components Thereof,
`Inv. No. 337-TA-1058, Comm’n Op. (U.S.I.T.C. Apr. 9, 2019) .............................................11
`
`Certain Marine Sonar Imaging Devices, Including Downscan & Sidescan
`Devices, Prod. Containing the Same, & Components Thereof,
`Inv. No. 337-TA-921, Comm’n Op., 2016 WL 10987364 (Jan. 6, 2016) .................................9
`
`Certain Minoxidil Powder Salts & Compositions for Use in Hair Treatment,
`Inv. No. 337-TA-267, Initial Determination, 1988 WL 582867 (U.S.I.T.C.
`Feb. 16, 1988) ..........................................................................................................................23
`
`Certain Movable Barrier Operator Systems,
`Inv. No. 337-TA-1118, EDIS No. 730303, Comm’n Op. (U.S.I.T.C. Jan. 12,
`2021) ........................................................................................................................................13
`
`Certain Multi-Stage Fuel Vapor Canister Systems and Activated Carbon
`Components Thereof,
`Inv. No. 337-TA-1140, ID, 2020 WL 1026313 (Jan. 28, 2020), reviewed but
`took no position, 2020 WL 1700337 (U.S.I.T.C. Apr. 7, 2020) ................................................5
`
`Certain Printing & Imaging Devices & Components Thereof,
`Inv. No. 337-TA-690, Comm’n Op., 2011 WL 1303160 (U.S.I.T.C. Feb. 17,
`2011) ..........................................................................................................................................6
`
`Certain Strontium-Rubidium Radioisotope Infusion Sys.,
`Inv. No. 337-TA-1110, EDIS Doc. ID 684056, Initial Determination
`(U.S.I.T.C. Aug. 1, 2019) ..................................................................................................22, 26
`
`Certain Video Game Sys. & Controllers,
`Inv. No. 337-TA-743, Comm’n Op., 2011 WL 1523774 (Apr. 14, 2011) ................................8
`
`Certain Wet Dry Surface Cleaning Devices,
`Inv. 337-TA-1304, EDIS Doc. ID No. 793726, ID (U.S.I.T.C. Apr. 4, 2023) ........................11
`
`iv
`
`PUBLIC VERSION
`
`

`

`
`TABLE OF AUTHORITIES
`(continued)
`
`
`
`
`
`
`Hyosung TNS Inc. v. Int’l Trade Comm’n,
`926 F.3d 1353 (Fed. Cir. 2019)............................................................................................8, 10
`
`Page
`
`In the Matter of Certain Kinesiotherapy Devices & Components Thereof,
`Inv. No. 337-TA-823, Comm’n Opinion, 2013 WL 12447252 (July 12, 2013) .......................9
`
`Lelo Inc. v. ITC,
`786 F.3d 879 (Fed. Cir. 2015)....................................................................................................6
`
`STATUTES
`
`19 U.S.C. § 1337 ....................................................................................................................6, 8, 10
`
`§ 910(c)(2) of the FD&C Act .........................................................................................................23
`
`OTHER AUTHORITIES
`
`19 C.F.R. § 210.18 .....................................................................................................................5, 30
`
`Fed. R. Civ. P. 56 .............................................................................................................................5
`
`
`
`
`v
`
`PUBLIC VERSION
`
`

`

`1199 Investigation
`BAT
`
`BGTC
`
`Certain Tobacco
`Heating Articles
`
`Defaulting
`Respondents
`
`DI
`
`DI Products
`
`ENDS
`
`M-Ex.
`
`Participating
`Respondents
`
`
`
`PUBLIC VERSION
`
`TABLE OF ABBREVIATIONS
`
`(U.S.LT.C.
`Certain Tobacco Heating Articles, Inv. No. 337-TA-1199
`British American Tobacco p.l.c. — parent company of Complainants
`Bowman Gray Technical Center—a Reynoldsfacility in Winston-
`Salem, NC.
`Certain Tobacco Heating Articles, Inv. No. 337-TA-1199 (U.S.LT.C.)
`e Order No. 19 (EDIS Doc. ID No. 722975) (Oct. 22, 2020)
`e Order No. 35 (EDIS Doc. ID No. 731117) (Jan. 19, 2021)
`e
`Initial Determination (“ID”) (EDIS Doc. ID No. 742491) (May 14,
`2021)
`e Commission Opinion (“Comm’n Op.”) (EDIS Doc. ID No.
`754503) (Oct. 19, 2021), aff’d sub nom., 63 F.4th 1328 (Fed. Cir.
`2023
`Vapeonly Technology Co. Ltd. (“Vapeonly”); iMiracle (Shenzhen)
`Technology (“iMiracle (Shenzhen)”); Nevera (HK) Ltd. (“Nevera
`(HK)”); WonderLadies Ltd. (“Wonder Ladies”); Sailing South Ltd.
`(“Sailing South”); Marea Morada Ltd. (“Marea Morada’”); Social
`Brands, LLC (“Social Brands”); Palma Terra Ltd. (“Palma Terra’’);
`Heaven Gifts International Ltd. (“Heaven Gifts”); Shenzhen LC
`Technology Co., Ltd. (“Shenzhen LC”); LCF Labs,Inc.; Flumgio
`Technology Ltd. (““Flumgio”); Flawless Vape Shop Inc.; Flawless
`Vape Wholesale & Distribution Inc.; and VICA Trading Inc. d/b/a
`Vapesourcing (“VICA Trading”or “Vapesourcing”). See Order 17
`(EDIS Doc. ID No. 832345), not reviewed Comm’n Determ’n (EDIS
`Doc. ID No. 834276).
`Domestic Indus
`The Reynolds VUSEproducts that practice the inventions claimed in
`the ’202 Patent: Solo (including Gen 1 and Gen 2), Vibe, Ciro, Alto
`including Alto 2.0 and Alto 2.0 Plus
`electronic nicotine delivery devices
`
`Refers to the exhibits included within Mr. Mooney’s December15,
`2024 Expert Report, attached hereto as Exhibit A-1
`Shenzhen Kangvape Technology Co., Ltd. (““Kangvape”); SV3 LLC
`d/b/a Mi-One Brands; Pastel Cartel, LLC; American Vape Company,
`LLC; Affiliated Imports, LLC; Maduro Distributors, Inc. (d/b/a The
`Loon); TheSy, LLC (d/b/a Element Vape): Shenzhen Yanyang
`Technology Co., Ltd.; Shenzhen Pingray Technology Co., Ltd.;
`Shenzhen IVPS Technology Co., Ltd.; Breeze Smoke, LLC:
`Dongguan (Shenzhen) Shikai Technology Co., Ltd.; Zhuhai Qisitech
`Co., Ltd.; Guangdong Qisitech Co., Ltd.; Guangdong FuwoIntelligent
`Manufacturing Co., Ltd.; Guangdong Cellular Workshop Electronics
`Technology Co., Ltd.; Price Point Distributors Inc. d/b/a Price Point
`NY; and Shenzhen Han Technology Co., Ltd.
`
`vi
`
`
`
`PUBLIC VERSION
`
`

`

`Premarket Tobacco Product Application
`Complainant, RAI Services Compan
`Complainant, RAI Strategic Holdings Inc.
`Collectively, Complainants RAI Strategic Holdings Inc., R.J.
`Reynolds Vapor Company, RAI Services Company, and R.J. Reynolds
`Tobacco Compan
`Complainant, R.J. Reynolds Tobacco Compan
`Complainant, R.J. Reynolds Vapor Compan
`Reynolds Operations Center—a 2,000,000-square-foot facility located
`in Tobaccoville, NC.
`Scientific Research and Development—group at Reynolds operating
`largely in the BGTC and performing R&D functions for the compan
`Respondents terminated from the investigation by consent order:
`Respondent Kimsun Technology (HuiZhou) Co., Ltd. and Bidi Vapor
`LLC. See Order No. 10 (EDIS Doc. ID No. 830877); Order No. 26
`EDIS Doc. ID No. 836444).
`Reynolds’s Initial Post-Hearing Brief Submitted in the TEO phase of
`the Investigation (EDIS Doc. ID 834043
`Notice of a Commission Determination Not to Modify, Reverse, or Set
`Aside and Initial Determining Denying a Motion for Temporary Relief
`dated December 18, 2024 (EDIS Doc. ID No. 839563
`Transcript of the TEO Hearing held in this Investigation on September
`26-27 and October 8, 2024
`Order No. 28: Initial Determination Denying Motion for Temporary
`Relief dated November 19, 2024 (EDIS Doc. ID No. 837591
`Complainants’ Motion for Temporary Relief Under 19 U.S.C.
`TEO Mot. or TEO
`§ 1337(E)
`(EDIS Doc. ID No. 823486
`Motion
`TEO Opp’n or TEO_|Respondents’ Memorandum in Opposition to Complainants’ Motion
`Opposition
`for Temporary Relief Under 19 U.S.C. § 1337(E) (EDIS Doc. ID No.
`829336
`United States Patent No. 11,925,202
`
`PUBLIC VERSION
`
`
`
`
`
`PMTA
`RAIS
`RAISH
`Reynolds
`
`RJRT
`RJRV
`ROC
`
`SR&D
`
`Terminated
`Respondents
`
`TEO PHB
`
`TEO Comm’n
`Determ’n
`
`TEO Hearing Tr.
`
`TEO ID
`
`The ’202 Patent
`
`*All emphasis added unless otherwise indicated.
`
`Vii
`
`PUBLIC VERSION
`
`

`

`PUBLIC VERSION
`
`TABLE OF APPENDICES AND EXHIBITS
`
`
`
`
`
`Appx.1
`
`Appx.2
`Ex. A
`Ex. A-1
`
`Ex. B
`Ex.
`Ex. D
`Ex. E
`
`Ex: F
`Ex. G
`Ex. H
`Ex. 1
`Ex: J
`
`Ex. K
`
`Appendix of Exhibits, Declarations, and Attachments in Support of
`Reynolds’s Motion for Summary Determination
`Reynolds’s Statement of Uncontested Facts
`February 4, 2025 Declaration of Drew D. Moone
`Excerpts of the December 15 Expert Report of Drew D. Mooney Regarding
`Economic DI
`February
`5, 2025 Declaration of Robert E. Ferris
`Transcript of the January 23, 2025 deposition of Dr. DeForest McDuff
`Updated version of CX-0379C (RJRDISP 002431935
`Excerpts of October 2024 Post-market surveillance report
`RJRDISP_002432435—525
`Updated version of CX-0386C (RJRDISP 002431928
`Updated version of CX-0381C (RJRDISP 002431929
`Updated version of CX-0321C (RJIRDISP 002431932
`Updated version of CX-0387C (RJRDISP 002431933
`September 3, 2024 Expert Report of Dr. DeForest McDuff Regarding TEO
`Issues
`January 10, 2025 Expert Report of Dr. DeForest McDuff Regarding
`Economic DI (submitted on behalf of Respondent Kangvape onl
`
`Bx..1
`
`SKV-ITC-1410 00001898-1899
`
`SKV-ITC-1410 00000297-313
`Ex. M
`SKYTE Website Printout, PMTA Services
`Ex. N
`Transcript of the November 19, 2024 deposition of Robert E. Ferris
`Ex. O
`CDX-0004C_| Mooney Witness Statement Demonstratives
`CX-0004C|Witness Statement of Drew D. Mooney
`CX-0005C|Witness Statement of Edward L. Murrelle, Ph.D. (corrected)
`CX-0007C|Witness Statement of Robert E. Ferris
`CX-0110C|Complaint Exhibit 105C - Ferris Declaration
`CX-0289C|Solo PMTASection H Table of Contents
`
`
`CX-0292C__|Vibe PMTASection H Table of Contents
`CX-0293C|2014 VaporAllocations
`CX-0294C__|
`Flex Area Layout 06-24-2020
`CX-0295C|Solo Manufacturing P&L 2014-2019
`CX-0296C|2015-2016 Prelim R&D Vapor Summary
`CX-0297C_|PMTA costs as of 6-26-2020
`CX-0298C|VUSE Vapor P&L 2012-2019
`CX-0299C|Ecig development costs for RD 2013-2019
`CX-0301C|Ciro PMTASection H Table of Contents
`
`CX-0302C|RDSRA Innov 2014 Forward UPDATED 7282020
`CX-0303C|June 2020 Complaint Data
`
`vill
`
`PUBLIC VERSION
`
`

`

`PUBLIC VERSION
`
`
`
` CX-0304C|Vuse Solo Capital Spend Master File
`
`CX-0307C|Work Instructions, SOPs, Quality Manuals for Alto PMTA Submission
`CX-0311C|Quality Allocations 2023
`CX-0317C|2022 US Vapor Deploy Overview
`CX-0318C|2022 Allocation, US Vapor Deploy
`CX-0321C|VaporHistorical P&L from 2019 to 2023
`CX-0322C|RJRT Vapor Making Process Standard Operating Procedure
`CX-0323C|FDA Inspections General - ROC RJRT Vapor
`CX-0324C_|RJRT Manufacturing Division Quality Manual
`CX-0326C|2022 NCS Nonclinical Overview
`CX-0327C|2022 Clinical Studies Overview
`CX-0328C|Vapor Manufacturing Process
`CX-0329C|Vuse UC-spec Revision History
`CX-0331C|Vuse BA-spec Revision History
`CX-0333C|Manufacturing KPIs Overview "Tobaccoville" 21 vs Full YearTarget;
`Welcome to the ROC Sept 2023 Global Audit
`CX-0334C|VaporFinancials (GL accounts) (2023 Sep YTD)
`CX-0335
`RJRT.com website page, Transforming Tobacco
`CX-0336
`RJRT.com website page, Transforming Tobacco - Who weare
`CX-0341C|Forthright Engineermg PLLC, Boston Engineering & Device Solutions
`Invoices
`CX-0379C|VUSEFacility Operating and Maintenance Investments Summary
`CX-0380C|List of SR&D Employees, May 2024
`CX-0381C|PMTA Expenses breakdown 2019 - YTD sept 2023
`CX-0383C|Vapor 2019-2023 Reported COGS MGMT
`CX-0386C|Non PMTA Direct Labor Expenses - Vapor
`CX-0387C|Vapor Quality Control
`CX-0395C|LEX APPROVEDVape+ Wave 2, USA Output, C02
`CX-0732
`ReynoldsAm-Reynolds Vapor Company Completes PMTA Submission for
`Age-Gated Vuse
`CX-0902C|GoodCat Financial Summary
`CX-0905C|Supply of Goods Agreement between RJR Vapor and GoodCat
`CX-0922C|2024-07-30 Declaration of Adam Feist (GoodCat)
`CX-1011C_|Ex. 17 to Mooney Report - Plant and Equipment DI Expenditures
`CX-1012C|Ex. 18 to Mooney Report - Laborand Capital DI Expenditures
`CX-1013C|Ex. 19 to Mooney Report - Plant and Equipment Significance (2013 - Sept.
`2023)
`- COGS, Inv. 337-TA-1410
`CX-1020C|Ex. 26 to Mooney Report - GoodCat Production DI Investments - Vuse Alto
`DI Product, Inv. 337-TA-1410
`CX-1021C|Ex. 27 to Mooney Report - GoodCatSignificance - Total GoodCat COGS-
`Vuse Alto, Inv. 337-TA-1410
`CX-1022C|Ex. 28 to Mooney Report - GoodCat Significance - Total GoodCat Production
`
`1X
`
`PUBLIC VERSION
`
`

`

`PUBLIC VERSION
`
`
`
`Exhibit
`
`Description
`
`Expenses- Vuse Alto, Inv. 337-TA-1410 JX-0001
`
`U.S. Patent No. 11,925,202 (the “’202 Patent”)
`
`PUBLIC VERSION
`
`

`

`
`I.
`
`INTRODUCTION
`Reynolds seeks summary determination that it has satisfied the economic DI requirement
`
`
`
`as a matter of law. This determination should not be controversial: Reynolds initiated this
`
`Investigation to protect its domestic industry—including over
`
` dollars in domestic
`
`investments—from Respondents’ rampant infringement of Reynolds’s ʼ202 Patent. Reynolds’s
`
`investments are not new ground for the Commission to plow—in the 1199 Investigation, it found
`
`that Reynolds’s domestic investments (in just a subset of the very same DI Products) established
`
`an economic DI. And in the TEO phase here, the ALJ determined that “evidence shows past
`
`evidence of significant investment and unrebutted testimony that such investments are ongoing.”
`
`TEO ID at 87–88. Respondents do not contest any of the underlying facts or the reasoning in the
`
`TEO ID. Accordingly, Reynolds should be entitled to summary determination that it has satisfied
`
`the economic DI requirement as a matter of law.
`
`During the TEO phase, Respondents did not even contest that Reynolds is likely to prove
`
`the existence of an economic DI. Now, Respondents only halfheartedly contest Reynolds’s
`
`showing of economic DI: Of 18 Participating Respondents, 17 chose not to offer any expert
`
`testimony to rebut Reynolds’s expert (Mr. Mooney) on economic DI. Only one (Kangvape)
`
`submitted a rebuttal expert report from Dr. McDuff on economic DI issues. Ex. C at 31:11-12.
`
`But Dr. McDuff’s DI Report does not contest any of the facts—specifically, that Reynolds made
`
`its claimed investments—his report simply challenges (and erroneously so) the legal conclusion
`
`that these investments satisfy the economic DI requirement. Ex. C at 80:4-11 (Dr. McDuff
`
`“assum[ed]” that Mr. Mooney’s “calculations” and “figures” are “factually accurate”). When the
`
`TEO ID issued a few months ago, Reynolds had established economic DI based on data through
`
`September 2023; since then, Reynolds’s investments have only increased. Nothing has changed
`
`that should alter the ALJ’s reasoning or conclusion on this issue. Dr. McDuff’s erroneous legal
`
`1
`
`PUBLIC VERSION
`
`

`

`
`arguments—embraced by only a single Respondent—should be rejected.
`
`
`
`Summary determination is designed to strip issues like these—where there are no genuine
`
`factual disputes that need consume precious