After CBP Stops Imports of Infringing Cartridges, ITC Issues Eight More Seizure Orders

It has been a week since our last article about the U.S. International Trade Commission (ITC) issuing seizure-and-forfeiture orders to aftermarket supplies companies that import infringing cartridges in violation of the Commission’s general exclusion orders (GEOs).

action-intell-logo-250x70In last week’s article, we reported that thus far in 2016 the ITC had issued 30 seizure orders related to ink and toner cartridge investigations. Now eight more seizure orders have been issued, bringing the total to 38. Clearly, organizational improvements at U.S. Customs and Border Protection (CBP), the agency that enforces the ITC’s exclusion orders, are enabling CBP to detect more infringing products at U.S. ports.

The eight orders were issued to six different companies: Compandsave.com Inc. of Newark, CA; Compu-Imaging, Inc., of Miami, FL; GMC Online Trading LLC of Sunny Isles, FL; Quantum Tech International Inc. of Rowland Heights, CA; Spectrum Imaging LLC of Walnut, CA; and Xcess Technology, Inc., of Santa Fe Springs, CA.

The first of these firms, Compandsave.com Inc., was issued three orders on April 5:

  1. One seizure order was issued for importing inkjet cartridges in violation of the GEO awarded to Epson in 2007 in the 337-TA-565 investigation, which covers U.S. patents 5,615,957,5,622,439, 5,158,377, 5,221,148, 5,488,401, 6,502,917, 6,550,902, 6,955,422, 7,008,053, and 7,011,397.
  2. Another seizure-and-forfeiture order was issued to Compandsave.com for violating the GEO awarded to HP in 2011 in the 337-TA-691 The 337-TA-691 GEO covers U.S. patent numbers6,089,687 and 6,264,301, which relate to the chipset used in numerous HP ink tanks.
  3. The third seizure-and-forfeiture order issued to Compansave.com was for infringing patents on integrated print-head cartridges protected by the GEO awarded to HP in 2011 in the 337-TA-723 This GEO covers U.S. patents 6,234,598, 6,309,053, 6,398,347, 6,481,817, and 6,402,279.

As you can probably tell by its name, Compandsave Inc. operates the CompAndSave.Comwebsite. The firm, established in 2003, is an online seller of ink and toner cartridge supplies as well as printer accessories. According to import sites, one of the firm’s trading partners is Zhuhai Shanmei Electronic Co., Ltd.

On April 5. Compu-Imaging, Inc., was issued a seizure-and-forfeiture order for violating the GEO awarded to HP in the 337-TA-723 investigation discussed above. The firm operates the website www.compu-imaging.com. According to the company website, Compu-Imaging was formed in 1981.

Compu-Imaging was a defendant in some toner cartridge litigation a few years ago. The company was one of the Ninestar distributors named as a respondent/defendant in Canon’s 2010 litigation over U.S. patents 5,903,803 and 6,128,454 filed before the U.S. ITC and in federal district court. This litigation came to an end after all the respondents and defendants agreed to consent judgments and permanent injunctions.

Later, of course, Canon would file another set of complaints related to these same patents and was awarded its first GEO in 2013 in the 337-TA-829 investigation.

In 2013, Canon got a contempt order issued against Compu-Imaging for violating the terms of the consent order and permanent injunction that it agreed to back in 2011.

Moving on to the next company that was the recipient of a seizure-and-forfeiture order on April 5 we have GMC Online Trading LLC. The ITC issued this firm a seizure order for infringing Epson’s 337-TA-565 GEO noted above.

We have written about this company once before. GMC Online Trading received a seizure order in December 2015 (see “U.S. ITC Issues 60th Seizure-and-Forfeiture Order”). As we reported back then, this company was incorporated in February 2015, and its principals are listed as Marcela C. Duarte and Christian E. Sebok. GMC Online Trading’s address is an apartment complex, so this would appear to be a small home-based business.

Three companies—Quantum Tech International, Spectrum Imaging, and Xcess Technology—were issued seizure-and-forfeiture orders on April 5 for violating the GEO issued in the337-TA-918 investigation, popularly known as Canon’s “dongle gear” complaint. Canon was awarded this GEO, which covers U.S. patents 8,280,278, 8,630,564, 8,682,215, 8,676,090, and 8,688,008, in August 2015.

Quantum Tech International Inc. is a fairly new company; it was incorporated in California in November 2014, Quantum has an Amazon storefront, where it sells Kingway inkjet compatibles, Starink inkjet compatibles, and various generic and Quantum-branded SKUs.

Spectrum Imaging LLC was incorporated in CA in June 2014. Spectrum operates a website (www.spectrumimaginggroup.com) that says the company specializes in compatible toner cartridges. According to import sites, Spectra Imaging imports products from Sinomage Technology Co, Ltd. and Q Image Technology Ltd.

We could dig up very little about Xcess Technology, which also appears to use the name Excess Technology. The company has imported toner cartridges in the past from Zhejiang Besda Office Equipment.

All eight seizure-and-forfeiture orders state that CBP denied entry to the cartridges, that the ITC has decided to issue a seizure-and-forfeiture order, and that any further attempts to import articles in violation of this same GEO will result in seizure and forfeiture.

Originally published on www.action-intell.com

About the Author
Based outside of Boston, Massachusetts, Actionable Intelligence, Inc., was established in 2009 and is committed to delivering tactical market research and custom consulting related to the markets for digital printer, copier, and MFP hardware and toner and inkjet supplies.