ITC Issues Limited Exclusion Order on 4X4 Autos that Infringe Chrysler Patent

Complaint Filed by Chrysler Regarding 4X4 Vehicle Design Patent

This investigation was based on a complaint filed by Chrysler Group LLC of Auburn Hills, MI, which alleged violations of section 337 of the Tariff Act of 1930 in the importation into the U.S. and sale of certain automotive vehicles and designs by reason of infringement of U.S. Patent No. D513,395 (the '395 patent).

The complaint named several respondents, including Shanghai Tandem Industrial Co., Ltd., of China and Vehicles Online, Inc., of Charlotte, NC. (The investigation was previously terminated for all other respondents on the basis of a consent order.)

LEO Excludes Infringing Articles by Shanghai Tandem from Entry

According to the limited exclusion order, automotive vehicles having designs that infringe the design claimed in the '395 patent and that are manufactured abroad by or on behalf of, or are imported by or on behalf of, Shanghai Tandem or any of its affiliated companies, parents, subsidiaries, or other related business entities, or their successors or assigns, are excluded from entry for consumption into the U.S., entry for consumption from a foreign-trade zone, or withdrawal from a warehouse for consumption, for the remaining term of the patent, except under license of the patent owner or as provided by law.

No Bond Required During 60-Day Review Period

The ITC also determined that the excluded automotive vehicles and designs are entitled to entry for consumption into the U.S., entry for consumption from a foreign-trade zone, or withdrawal from a warehouse for consumption, without posting a bond during the period from the day after the order is received by the U.S. Trade Representative and until such time as the USTR notifies the ITC that the order is approved or disapproved, but, in any event, not later than 60 days after receipt of the order.

CBP May Require Certification that Imports are Not Subject to Order

At the discretion of U.S. Customs and Border Protection and pursuant to procedures it establishes, persons seeking to import automotive vehicles and designs that are potentially subject to the limited exclusion order may be required to certify that they are familiar with the terms of the order, that they have made appropriate inquiry, and thereupon state that, to the best of their knowledge and belief, the products being imported are not excluded from entry under the order. At its discretion, CBP may require persons who have provided the certification to furnish such records or analyses as are necessary to substantiate the certification.

Cease and Desist Orders Issued Against 2 Respondents

The ITC has also issued cease and desist orders against Shanghai Tandem and Vehicles Online, which prohibit the importing, selling, marketing, advertising, distributing, offering for sale, transferring (except for exportation), and soliciting U.S. agents or distributors for automotive vehicles and designs therefor that infringe the design claimed in the '395 patent.

The conduct prohibited under the cease and desist orders may be continued during the 60 day period in which the orders are under review by the USTR, without the respondent(s) posting a bond.

(See ITT’s Online Archives or 06/15/10 news, 10061526, for BP summary of the institution of this patent investigation.)

ITC contact -- Clint Gerdine (202) 708-2310

(FR Pub 03/15/11, Inv. No. 337-TA-722)

The limited exclusion order and cease and desist orders are available by emailing documents@brokerpower.com.