CAFC Affirms ITC Civil Penalties Against Ninestar for Section 337 Violations

The Court of Appeals for the Federal Circuit has affirmed the International Trade Commission’s assessment of civil penalties against Ninestar¹ for failure to comply with cease and desist orders and a consent order² issued in the original investigation of certain ink cartridges and components thereof (337-TA-565).

(In October 2007, pursuant to an investigation based on a complaint filed by Epson Portland, Inc. of Oregon; Epson America, Inc. of California; and Seiko Epson Corporation of Japan, ITC issued general and limited exclusion orders and cease and desist orders, directed against a number of respondents, against the importing, selling, marketing, advertising, distributing, offering for sale, transferring (except for exportation) in the U.S., and soliciting U.S. agents or distributors for, ink cartridges covered by claims of certain U.S. patents and directed to certain domestic respondents.

After issuance of these orders, Ninestar U.S. and Town Sky continued to import into the United States and to sell the ink cartridges that were the subject of the orders. An enforcement proceeding was brought and, upon investigation and hearing, the Administrative Law Judge determined that Ninestar was in violation of the cease and desist orders and a consent order, and levied a civil penalty.)

¹Ninestar Technology Co., Ltd. (China); Ninestar Technology Company, Ltd. (Ninestar U.S.); Town Sky Inc. (collectively, Ninestar)

(See ITT’s Online Archives 07102620 for summary of ITC’s issuance of the orders.

See ITT’s Online Archives 09082125 for summary of ITC’s assessment of more than $21 million in civil penalties for violating the cease and desist orders and consent order, including a civil penalty of $11,110,000 against Ninestar.)

²According to ITC sources, the CAFC mistakenly states that ITC’s civil penalties against Ninestar were assessed for failure to comply with the exclusion and cease and desist orders.