UNITED STATES INTERNATIONAL TRADE COMMISSION
`Washington, DC
`Before the Honorable David P. Shaw
`Administrative Law Judge
`
`
`
`In the Matter of
`
`
`
`Investigation No. 337-TA-829
`
`CERTAIN TONER CARTRIDGES AND
`COMPONENTS THEREOF
`
`
`
`
`COMMISSION INVESTIGATIVE STAFF’S RESPONSE TO JOINT MOTION
`TO TERMINATE INVESTIGATION BASED ON ENTRY OF CONSENT ORDER
`
`The Commission Investigative Staff (“Staff”) respectfully submits this response to the
`
`motion of Respondent Virtual Imaging Products, Inc. (“VIP”) seeking termination of this
`
`investigation with regard to VIP on the basis of a Revised Consent Order Stipulation
`
`(“Stipulation”) and Revised Proposed Consent Order. Mot. Docket No. 829-006 (Apr. 2, 2012)
`
`(withdrawal of Mot. Docket No. 829-005 (Mar. 26, 2012) and submission of revised motion to
`
`terminate). Copies of the Stipulation and Revised Proposed Consent Order are attached to the
`
`motion. In the Staff’s view, the Stipulation and Revised Proposed Consent Order comply with
`
`the Commission’s requirements. Moreover, the terms of the Stipulation and Revised Proposed
`
`Consent Order do not appear to be contrary to the public interest. Accordingly, the Staff
`
`supports VIP’s motion as revised.
`
`I.
`
`COMPLIANCE WITH RULE GOVERNING TERMINATION BY ENTRY
`OF A CONSENT ORDER
`
`Commission Rule 210.21(c)(l)(ii) provides that a request to terminate an investigation by
`
`consent order shall be submitted as a motion to the Judge with a stipulation that incorporates a
`
`proposed consent order. 19 C.F.R. § 210.21(c)(l)(ii) (2012). In accordance with this rule, VIP
`
`has provided a Consent Order stipulation signed by a duly authorized representative of VIP. The
`
`

`
`-2-
`
`Stipulation provides that VIP “will not import into the United States, sell for importation, or sell
`
`within the United States after importation, or knowingly aid, abet, encourage, participate in, or
`
`induce the importation into the United States, the sale for importation, or the sale within the
`
`United States after importation of toner cartridges or components thereof that infringe Claims
`
`128-130, 132, 133, and 139-143 of U.S. Patent No. 5,903,803 . . . and claims 24-30 of U.S.
`
`Patent No. 6,128,454[.]” Stipulation at 2.
`
`The Stipulation admits that the Commission has in rem jurisdiction over the accused
`
`products and in personam jurisdiction over VIP for purposes of the Revised Proposed Consent
`
`Order. Id.; 19 C.F.R. § 210.21(c)(3)(i)(A)(l). It also contains an express waiver of all rights to
`
`seek judicial review or otherwise challenge or contest the validity of the Consent Order.
`
`Stipulation at 3; 19 C.F.R. § 210.21(c)(3)(i)(A)(2). Further, it contains a statement that VIP will
`
`not seek to impede, by litigation or other means, the Commission’s efforts to gather information
`
`under Subpart I of Part 210 of the Commission’s Rules of Practice and Procedure, and that
`
`enforcement, modification, and revocation of the Consent Order will be carried out pursuant to
`
`Subpart I of Part 210. Stipulation at 3; 19 C.F.R. § 210.21(c)(3)(i)(A)(3-4).
`
`The Stipulation also complies with the requirements of Rule 210.21(c)(3)(i)(B)(l). It
`
`contains a statement that the Revised Proposed Consent Order shall not apply with respect to any
`
`claim of any intellectual property right that has expired or been found or adjudicated invalid or
`
`unenforceable by the Commission or a court or agency of competent jurisdiction, “provided that
`
`such finding or judgment has become final and nonreviewable.” Stipulation at 3; 19 C.F.R.
`
`§ 210.21(c)(3)(i)(B)(1). It also contains the required statement that VIP will not seek to
`
`challenge the validity of the intellectual property rights at issue in any proceeding to enforce the
`
`Consent Order. Stipulation at 4; 19 C.F.R. § 210.21(c)(3)(i)(B)(2).
`
`

`
`-3-
`
`II.
`
`PUBLIC INTEREST
`
`Pursuant to Commission Rule 210.21(c)(2)(ii), the Commission, in ruling on a proposed
`
`consent order, shall consider the effect of the consent order “upon the public health and welfare,
`
`competitive conditions in the U.S. economy, the products of like or directly competitive articles
`
`in the United States, and U.S. consumers.” 19 C.F.R. § 210.21(c)(2)(ii). Additionally, the
`
`Administrative Procedure Act indicates that agencies should consider termination of disputes by
`
`the involved parties where “the public interest permit[s].” 5 U.S.C. § 554(c)(1).
`
`Under the terms of the Revised Proposed Consent Order:
`
`1) Upon entry of this Revised Consent Order, VIP will not import into the United
`States, sell for importation, or sell within the United States after importation, or
`knowingly aid, abet, encourage, participate in, or induce the importation into the
`United States, the sale for importation, or the sale within the United States after
`importation of toner cartridges or components thereof that infringe Claims 128-
`130, 132, 133, and 139-143 of U.S. Patent No. 5,903,803 (“the ’803 Patent”) or
`Claims 24-30 of U.S. Patent No. 6,128,454 (“the ’454 Patent”) (collectively “the
`Patents-in-Suit”) until: (1) the expiration of the Patents-in-Suit, (2) a final and
`nonreviewable finding by a court or agency of competent jurisdiction, including
`this Commission, that the asserted claims of the Patents-in-Suit are invalid, (3) a
`final and nonreviewable finding by a court or agency of competent jurisdiction,
`including this Commission, that the asserted claims of the Patents-in-Suit are
`invalid [sic], (4) a final and nonreviewable finding by a court or agency of
`competent jurisdiction, including this Commission, that the VIP products do not
`infringe all of the asserted claims of the Patents-in-Suit, or (5) the licensing of the
`VIP products under the asserted claims of the Patents-in-Suit.
`Revised Proposed Consent Order ¶ 1.1 For each of the asserted patents, the Revised Proposed
`
`Consent Order would remain in effect until that patent has expired. Id. ¶ 5. VIP would be
`
`
`1 The second half of this sentence contains a typographical error in that subparts (2) and (3) are
`essentially identical since each prohibits VIP from engaging in certain activities until the patents-
`in-suit are found invalid. In the Staff’s view, however, this error need not prevent the
`Commission from issuing the Revised Proposed Consent Order, as the language of the subparts
`following the word “until” is redundant in light of other paragraphs in the proposed order.
`Condition (1) (expiration of the Patents-in-Suit) is repetitive of paragraph five. Revised
`Proposed Consent Order ¶ 5. Condition (2) is covered by paragraph six, which provides that
`“[w]hen any claim of any of the Patents-in-Suit expires or is found or adjudicated invalid or
`unenforceable by the Commission or a court or agency of competent jurisdiction, provided that
`
`

`
`-4-
`
`required to cooperate with the Commission’s efforts to gather information under subpart I of
`
`Part 210 of the Commission’s Rules of Practice and Procedure, 19 C.F.R. Part 210, and would be
`
`precluded from seeking judicial review or otherwise challenging the validity of the Consent
`
`Order. Id. ¶¶ 3-4. If any claim of the asserted patents is held invalid or unenforceable in a final
`
`decision from a court or agency of competent jurisdiction, the Revised Proposed Consent Order
`
`would become null and void as to such invalid or unenforceable claim. Id. ¶ 6. The Revised
`
`Proposed Consent Order would terminate the investigation as to Respondent VIP, with the
`
`proviso that enforcement, modification, or revocation of the consent order would be carried out
`
`pursuant to subpart I of Part 210 of the Commission’s Rules of Practice and Procedure. Id. ¶ 9.
`
`The Staff is not aware of any information suggesting that termination of this investigation
`
`with regard to VIP on the basis of the Revised Proposed Consent Order would be contrary to the
`
`public interest. The public interest generally favors settlement when it will avoid needless
`
`litigation and conserve public and private resources. See, e.g., Certain Electronic Paper Towel
`
`Dispensing Devices and Components Thereof, Inv. No. 337-TA-718, Order No. 25 at 4 (Dec. 1,
`
`2010); Certain Compact Disc and DVD Holders, Inv. No. 337-TA-482, Order No. 11, at 3 (Mar.
`
`7, 2003) (“[T]ermination of litigation under these circumstances as an alternative method of
`
`dispute resolution is generally in the public interest.”); accord Certain Gel-Filled Wrist Rests
`
`and Products Containing Same, Inv. No. 337-TA-456, Order No. 16, at 5 (May 21, 2002).
`
`
`such finding or judgment has become final and nonreviewable, this Order shall become null and
`void as to any such invalid or unenforceable claims.” Id. ¶ 6. Condition (3) is repetitive of
`Condition (2). Conditions (4) and (5) are redundant in light of the first half of this sentence,
`which refers to “toner cartridges or components thereof that infringe” the asserted claims.
`Products that are licensed or otherwise found to be noninfringing would not fall within the scope
`of this phrase in any event.
`
`

`
`-5-
`
`III. CONCLUSION
`
`For the reasons stated herein, the Staff submits that the investigation should be terminated
`
`as to Respondent VIP on the basis of the Revised Proposed Consent Order.
`
`Respectfully submitted,
`
`
`
`April 11, 2012
`
`
`
`
`
`
`
`/s/ Lisa A. Murray
`Lynn I. Levine, Director
`Thomas S. Fusco, Supervisory Attorney
`Lisa A. Murray, Investigative Attorney
`OFFICE OF UNFAIR IMPORT INVESTIGATIONS
`U.S. International Trade Commission
`500 E Street SW, Suite 401
`Washington, DC 20436
`202-205-2734
`202-205-2158 (facsimile)
`
`

`
`Certain Toner Cartridges
`and Components Thereof
`
`
`
`Investigation No. 337-TA-829
`
`CERTIFICATE OF SERVICE
`
`The undersigned certifies that on April 11, 2012, she caused the foregoing COMMISSION
`INVESTIGATIVE STAFF’S RESPONSE TO MOT. DKT. NO. 829-006 to be served by
`hand upon Administrative Law Judge David P. Shaw (2 copies), and served upon the parties
`(1 copy each) in the manner indicated below:
`
`For Complainants Canon Inc., Canon USA, Inc. and Canon Virginia, Inc.:
`
`BY E-MAIL
`msandonato@fchs.com
`
`Nicholas M. Cannella
`Michael P. Sandonato
`FITZPATRICK, CELLA, HARPER & SCINTO
`1290 Avenue of the Americas
`New York, NY 10104-3800
`Telephone: 212-218-2100
`Facsimile: 212-218-2200
`
`Edmund J. Haughey
`Stephen E. Belisle
`Seth E. Boeshore
`FITZPATRICK, CELLA, HARPER & SCINTO
`975 F Street, N. W.
`Washington, DC 20004
`Telephone: 202-530-1010
`Facsimile: 202-530-1055
`
`For Respondents Atman, Inc. d/b/a/ pcRush.com and Do It Wiser LLC d/b/a Image Toner:
`
`Kenneth M. Motolenich-Salas
`WEISS & MOY, P.C.
`4204 N. Brown Ave.
`Scottsdale, AZ 85251
`Telephone: (480) 994-8888
`Facsimile: (480) 947-2663
`
`BY E-MAIL
`kmotolenich@weissiplaw.com
`
`For Respondents Clover Holdings, Inc.; Clover Technologies Group, LLC d/b/a Depot
`International f/k/a Depot America f/k/a Image1 Products; Clover Vietnam Co., Ltd.;
`Dataproducts USA; LLC, Dataproducts Imaging Solutions S.A. de C.V.; CAU Acquisition
`Company, LLC d/b/a Cartridges are Us; Dexxxon Digital Storage, Discount Office Items,
`Deal Express, GreenLine Paper Company, Myriad Greeyn, Office World, and
`OfficeWorld.com:
`
`BY E-MAIL
`d.sean.trainor@kirkland.com
`
`Edward C. Donovan
`D. Sean Trainor
`Elizabeth T. Bernard
`Michael A. Pearson, Jr.
`KIRKLAND & ELLIS LLP
`655 Fifteenth Street, N.W.
`Washington, DC 20005-5701
`Telephone: (202) 879-5000
`Facsimile: (202) 879-5200
`
`

`
`Certain Toner Cartridges
`and Components Thereof
`
`For Respondent Imaging Resources, LLC:
`
`-2-
`
`Investigation No. 337-TA-829
`
`BY E-MAIL
`lmaging!TC829@alston.com
`
`Scott J. Pivnick
`Chad A. Thompson
`ALSTON & BIRD LLP
`The Atlantic Building
`950 F Street, NW
`Washington, DC 20004
`lmaging!TC829@alston.com
`Telephone: (202) 239-3300
`Facsimile: (202) 654-4844
`
`For Respondents Green Project, Inc.; and Acecom, Inc.–San Antonio d/b/a InkSell.com:
`
`Thomas T. Chan
`Aaron Craig
`Lisa Karczewski
`Steven S. Hanagami
`FOX ROTHSCHILD LLP
`1055 West 7th Street, Suite 1880
`Los Angeles, CA 90017
`Telephone: (213) 624-6560
`Facsimile: (213) 622-1154
`
`Respondent Virtual Imaging Products Inc.:
`
`Merritt R. Blakeslee
`THE BLAKESLEE LAW FIRM
`1250 Connecticut Ave., NW, Suite 700
`Washington, DC 20036
`Telephone: (202) 419-1535
`Facsimile: (202) 318-0423
`
`Other Named Respondents:
`
`BY E-MAIL
`acraig@foxrothschild.com
`
`BY E-MAIL
`mrb@blakeslee-law.com
`
`Shanghai Orink Infotech International Co. Ltd.
`Room 307, No. 275-8 East Guoding Road
`Shanghai, China 200433
`
`BY U.S. MAIL
`
`Orink Infotech International Co., Ltd.
`Unit 1205, 12F/L, Sino Plaza
`255 Gloucester Road
`Causewat Bay, Hong Kong
`
`Zhuhai Rich Imaging Technology Co., Ltd.
`F4, B1, No.7 Pingxiyi Road
`Nanping S&T Industry Community
`Zhuhai, Guangdong Province, China 519060
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`

`
`Certain Toner Cartridges
`and Components Thereof
`
`-3-
`
`Investigation No. 337-TA-829
`
`Standard Image Co., Ltd.
`a/k/a Shanghai Orink Co., Ltd.
`Room 507-508, Building A
`No. 1555, Kongjiang Road
`Yangpu District, Shanghai, China 200092
`
`Standard Image USA, Inc.
`d/b/a Imaging Standard Inc.
`1621 East Saint Andrew Place
`Santa Ana, CA 92705
`
`Printronic Corporation
`d/b/a Printronic.com d/b/a InkSmile.com
`1621 East Saint Andrew Place
`Santa Ana, CA 92705
`
`Nukote, Inc.
`2400 Dallas Parkway, Suite 230
`Plano, TX 75093
`
`Nukote Internacional de Mexico, S.A. de C.V.
`Avenida del Parque 1175
`Monterrey Technology Park
`Cienega de Flores
`Nuevo Leon, Mexico 65550
`
`Do It Wiser LLC d/b/a Image Toner
`1 720 Cumberland Point Drive, Suite 21
`Marietta, GA 30067
`
`E-Max Group, Inc.
`d/b/a Databazaar.com
`12070 Miramar Parkway
`Miramar, FL 33025
`
`IJSS Inc.
`d/b/a TonerZone.com
`d/b/a InkJetSuperstore.com
`6380 Wilshire Boulevard, Suite 1018
`Los Angeles, CA 90048
`
`Ink Technologies Printer Supplies, LLC
`7600 McEwen Road
`Dayton, OH 45459
`
`OnlineTechStores.com, Inc.
`d/b/a SuppliesOutlet.com
`10381 Double R Boulevard
`Reno, NV 89521
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`

`
`Certain Toner Cartridges
`and Components Thereof
`
`-4-
`
`Investigation No. 337-TA-829
`
`SupplyBuy.com, Inc.
`230 4th Avenue N, Suite 300D
`Nashville, TN 37219
`
`Zinyaw LLC d/b/a TonerPirate.com
`14781 Memorial Drive, Suite 1359
`Houston, TX 77079
`
`Zhuhai National Resources & Jingjie Imaging
`Products Co., Ltd. d/b/a Huebon Co., Limited
`d/b/a Ink-Tank
`3/F, No. 1 Industrial Building
`Pingdong 2 Road
`Nanping Science & Technology Park
`Zhuhai, Guangdong Province, China 519060
`
`
`
`
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
`BY U.S. MAIL
`
` /s/ Pathenia Proctor
`
`Pathenia Proctor
`Paralegal Specialist
`OFFICE OF UNFAIR IMPORT INVESTIGATIONS
`U.S. International Trade Commission
`500 E Street, SW, Suite 401
`Washington, DC 20436
`(202) 205-2560
`(202) 205-2158 (Facsimile)