Third-Party Inks Threatened

October 26, 2007: Seiko Epson looks set to win an action against 24 Chinese, Korean and German importers of cheap inkjet inks in North America in a case brought by the US International Trade Commission (ITC).

The ITC issued a Final Determination upholding, with slight modifications, the Initial Determination issued by the ITC Administrative Law Judge on March 30, 2007 that found all 11 patents belonging to Seiko Epson Corporation (“Epson”) to be valid and all ink cartridges at issue to infringe one or more of the patents. The modifications to the Initial Determination do not significantly change the outcome, and under the Final Determination, all of Epson’s 11 patents were found valid and all accused cartridges still infringe one or more of the patents.

The ITC also issued a General Exclusion Order that prohibits all importation of infringing cartridges into the U.S., and also issued a Limited Exclusion Order that prohibits all importation of infringing cartridges by defaulting respondents. In addition, the ITC also issued Cease and Desist Orders that prohibit the sale and distribution of infringing cartridges in the U.S. by certain domestic respondents. The General Exclusion Order prohibits the importation of all infringing ink cartridges by any importers of infringing ink cartridges.

The Final Determination is subject to Presidential Review for 60 days, during which importers may continue to import infringing cartridges into the United States only if they post a bond of $13.60 per cartridge. However, if the President does not disapprove the Final Determination, then all importers must cease importing infringing products entirely. The case may have international ramifications.