`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`
`Washington, D.C.
`
`
`
`
`In the Matter of
`
`CERTAIN CRAFTING MACHINES AND
`COMPONENTS THEREOF
`
`
`ORDER NO. 5:
`
`INV. NO. 337-TA-1426
`
`INITIAL DETERMINATION GRANTING UNOPPOSED MOTION
`TO TERMINATE RESPONDENT SAINSTORE TECHNOLOGY
`CO., LTD., FROM THE INVESTIGATION BASED UPON A
`CONSENT ORDER STIPULATION AND PROPOSED CONSENT
`ORDER
`
`
`
`(January 8, 2025)
`
`On December 23, 2024, respondent SainStore Technology Co., Ltd. (“SainStore”) moved
`
`“to terminate this Investigation as to SainStore and to stay the procedural schedule as to SainStore
`
`pending final ruling on the motion to terminate.” Mot. No. 1426-001 at 1. On January 2, 2024,
`
`the Office of Unfair Import Investigations filed a response in support of the motion. See EDIS
`
`Doc. ID 840330. No party filed an opposition to the motion.
`
`Commission Rule 210.21(a)(2) provides that “[a]ny party may move at any time to
`
`terminate an investigation in whole or in part as to any or all respondents on the basis of . . . a
`
`consent order, as provided in paragraphs (b), (c) and (d) of this section.” 19 C.F.R. § 210.21(a)(2).
`
`Commission Rule 210.21(c) provides in relevant part that “[a]n investigation before the
`
`Commission may be terminated pursuant to section 337(c) of the Tariff Act of 1930 on the basis
`
`of a consent order.” 19 C.F.R. § 210.21(c).
`
`Consistent with Commission Rule 210.21(c)(1)(ii), SainStore provided a consent order
`
`stipulation and proposed consent order with the pending motion. The consent order stipulation is
`
`
`
`attached to this initial determination as Exhibit A, and the proposed consent order is attached to
`
`this initial determination as Exhibit B. SainStore represents that “that there are no other
`
`agreements, written or oral, express or implied, between Complainant and SainStore.” Mot. No.
`
`1426-001 at 1; see also 19 C.F.R. § 210.21(c).
`
`Commission Rule 210.21(c)(3) sets forth the requirements for a consent order stipulation.
`
`See 19 C.F.R. § 210.21(c)(3). I have reviewed the consent order stipulation (Exhibit A) and find
`
`that it conforms with Commission Rule 210.21(c)(3).
`
`Commission Rule 210.21(c)(4) sets forth the requirements for a consent order. See
`
`19 C.F.R. § 210.21(c)(4). I have reviewed the proposed consent order (Exhibit B) and find that it
`
`conforms with Commission Rule 210.21(c)(4).
`
`Briefing on the motion presents arguments concerning the effect of the proposed consent
`
`order on the public interest. See Motion No. 1426-001 at 2-3; EDIS Doc. ID 840330 at 12. I am
`
`therefore required to consider and make appropriate findings regarding the effect of the proposed
`
`settlement on four statutory public interest factors: (1) the public health and welfare,
`
`(2) competitive conditions in the United States economy, (3) the production of like or directly
`
`competitive articles in the United States, and (4) United States consumers. See 19 U.S.C.
`
`§ 1337(d)(1); 19 C.F.R. § 210.50(b)(2).
`
`SainStore argues that “[e]ntry of this consent order will not impose an undue burden on the
`
`public health and welfare, competitive conditions in the United States economy, production of like
`
`or directly competitive articles in the United States, or U.S. consumers.” Mot. No. 1426-001 at 3.
`
`SainStore also argues that “Commission policy and the public interest generally favor the early
`
`voluntary disposition of an investigation—which preserves resources for the Commission, the
`
`2
`
`
`
`Administrative Law Judge, and the private parties—and termination based on a settlement
`
`agreement and/or a consent order is routinely granted.” Id. at 2.
`
`OUII states that it “is not aware of any information indicating that termination of this
`
`Investigation as to SainStore based upon the Proposed Consent Order and would be contrary to
`
`the public health and welfare, competitive conditions in the U.S. economy, the production of like
`
`or directly competitive articles in the United States, or U.S. consumers.” EDIS Doc. ID 840330
`
`at 12. OUII also states that “[s]ettlement of disputes, such as by consent order, is in the public
`
`interest because it conserves both the Commission’s and the private parties’ resources.” Id.
`
`Based on the motion papers and the record as a whole, I find that any effect the proposed
`
`consent order may have on the statutory public interest factors does not counsel against entry of
`
`the order. In addition, I find that termination of the investigation as to SainStore by consent order
`
`will preserve Commission resources and avoid unnecessary litigation.
`
`Accordingly, it is my initial determination that unopposed Motion Number 1426-001 is
`
`granted. All deadlines will remain stayed as to SainStore pending Commission review of this
`
`initial determination. See Order 2 at 10 (Dec. 11, 2024) (“Upon the filing of an unopposed motion
`
`to terminate the investigation under Commission Rule 210.21, all deadlines are automatically
`
`stayed as to the party or parties seeking termination from the investigation until otherwise ordered
`
`by the Chief Administrative Law Judge or the Commission.”).
`
`Pursuant to 19 C.F.R. § 210.42(h), this initial determination shall become the determination
`
`of the Commission unless a party files a petition for review of the initial determination pursuant
`
`to 19 C.F.R. § 210.43(a), or the Commission, pursuant to 19 C.F.R. § 210.44, orders on its own
`
`motion a review of the initial determination or certain issues herein.
`
`3
`
`
`
`SO ORDERED.
`
`
`
`
`
`
`
`
`
`
`
`
`
`ff
`v) L-
`Clark S. Cheney
`
`Chief Administrative LawJudge;
`
`;
`
`
`
`4
`
`
`
`
`
`CORRECTED
`CORRECTED
`EXHIBIT A
`EXHIBIT A
`
`
`
`
`
`
`
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON,D.C.
`
`Before The Honorable Clark S. Cheney
`Chief Administrative Law Judge
`
`
`In the Matter of
`
`CERTAIN CRAFTING MACHINES AND
`COMPONENTS THEREOF
`
`
`Inv. No. 337-TA-1426
`
`CONSENT ORDER STIPULATION
`BY RESPONDENT SAINSTORE TECHNOLOGYCO., LTD.
`
`WHEREAS ComplainantCricut, Inc. (“Complainant”or “Cricut”) filed a Complaint with
`
`the United States International Trade Commission on October4, 2024, alleging a violation of
`
`Section 337 ofthe Tariff Act of 1930, as amended(19 U.S.C. § 1337) ("Section 337"), based
`
`upon, among other things, the alleged importation into the United States, sale for importation
`
`into the United States, and sale after importation into the United States of certain cutting
`
`machines and heat press machinesforusein crafting that allegedly infringe claims of U.S. Patent
`
`Nos. 11,208,758 (“the ’758 Patent”), 11,905,646 (“the ’646 Patent”), D893,563 (“the °563
`
`Patent”), D910,724 (“the ’724 Patent”), and D926,237 (“the ’237 Patent”) (collectively “the
`
`Asserted Patents”);
`
`WHEREASthe United States International Trade Commission (“Commission” or aT}
`
`instituted this investigation on December11, 2024, under Section 337 of the Tariff Act of 1930
`
`as Amended (19 U.S.C. § 1337), based upontheallegations contained in the Complaintfiled by
`
`Complainant on October 4, 2024;
`
`WHEREASthe Complaintalleges that Respondent SainStore Technology Co., Ltd.
`
`(“SainStore”) imports into the United States, sells for importation, and/orsells after importation
`
`into the United States certain cutting machines and heatpress machinesforuse in crafting that
`
`
`
`
`
`allegedly infringe Claims 18, 19-22 of the ’758 Patent, Claims 8, 9, 10-11, 12, 14, 15-16 of the
`
`°646 Patent, and the sole, unnumbered claimsof the ’563 Patent, the ’724 Patent, and the ’237
`
`Patent(collectively, the “Subject Articles’’);
`
`WHEREAS, in order to terminate this Investigation as to SainStore and to avoid the
`
`associated costs and burdensoflitigation, SainStore is entering into this Consent Order
`
`Stipulation and agrees to entry of a Consent Order by the Commission in compliance with Rule
`
`210.21 (c) in the form attached hereto as Exhibit A;
`
`NOW, THEREFORE,in accordance with Commission Rule 210.21(c)(1)(i1) and (c)(3),
`
`SainStore stipulates and agrees as follows in connection with the Motion to Terminate the
`
`Investigation in its Entirety Based on SainStore’s Entry of a Consent Order:
`
`The Complainantin this Investigation is Cricut, Inc., a corporation organized
`
`underthe laws of the United States, having a principal place of business at 10855 South River
`
`Front Parkway, South Jordan, Utah 84095.
`
`The Respondentin this Investigation is SainStore Technology Co., Ltd., a
`
`corporation organized under the laws of China, having a principal place of business at Room
`
`908, Building 2, No. 16, Keji 4" Road, Songshan Lake Park, Dongguan City, Guangdong
`
`Province, China 523808.
`
`Complainant's Complaintasserts claims 18, 19-22 of the ’758 Patent, claims8, 9,
`
`10-11, 12, 14, 15-16 of the ’646 Patent, and the sole, unnumbered claimsof the 563 Patent, the
`
`°724 Patent, and the ’237 Patent against SainStore.
`
`The Commission has subject matter jurisdiction over this Investigation. SainStore
`
`admits that the Commission hasin rem jurisdiction over the Subject Articles and personal
`
`jurisdiction over SainStore for purposesof this Stipulation and the Consent Order.
`
`
`
`SainStore agreesthat, upon entry of the Consent Order, SainStore shall not sell
`
`for importation, import, orsell after importation into the United States the Subject Articles,
`
`directly or indirectly and shall not aid, abet, encourage,participate in, or inducethe sale for
`
`importation, the importation, or sale after importation except under consentora license from
`
`Complainant, its successors or assignees.
`
`Uponentry of the Consent Order, SainStore shall not sell within the United States
`
`or otherwise transfer (except exportation) any remaining inventory of imported Subject Articles
`
`within the United States, except under consent or license from Complainant, its successors or
`
`Uponentry of the Consent Order, SainStore shall cease and desist from importing
`
`and distributing Subject Articles in the United States.
`
`SainStore expressly waivesall rights to seek judicial review or otherwise
`
`challenge or contest the validity of the Consent Order.
`
`SainStore shall cooperate with andshall not seek to impedebylitigation or other
`
`means the Commission's effort to gather information under Subpart I of Part 210, Title | of the
`
`Code of Federal Regulation.
`
`The enforcement, modification, and revocation of the Consent Order will be
`
`carried out pursuant to Subpart I of the Commission's Rules of Practice and Procedure, 19 C.F.R.
`
`Part 210, which are incorporated by reference herein.
`
`The signing ofthis Consent Order Stipulation is for settlement purposes only to
`
`resolve this Investigation and does not constitute any admission by SainStore that an unfair act
`
`has been committed.
`
`
`
`The Consent Order shall have the same force and effect and may be enforced,
`
`modified, or revoked in the same manneras is provided in Section 337 orthe Tariff Act of 1930
`
`and Part 210, Title 19 of the Code of Federal Regulations for other Commission actions, and the
`
`Commission may require periodic compliance reports pursuant to Subpart I of Part 210, Title 19
`
`Code Federal Regulations to be submitted by SainStore.
`
`Ifany of the Asserted Patent Claims have expiredor are held invalid or
`
`unenforceable by a court or agency of competentjurisdiction or if any article has been found or
`
`adjudicated not to infringe the assertedrightin a final decision, no longer subject to appeal, this
`
`Consent Order shall becomenull and void as to such expired, invalid, or unenforceable claim or
`
`as to any adjudicatedarticle.
`
`SainStore, including its officers, directors, employees, agents and any entity or
`
`individual acting onits behalf and with its authority will not seek to challengethe validity of any
`
`of the Asserted Patents in any administrative or judicial Proceeding to enforce the Consent
`
`15.|The Consent Order shall be applicable and binding upon SainStore,its officers,
`
`directors, agents, and employees, andits successors and assigns.
`
`16.|The Consent Order Stipulation and Consent Orderare in the public interest.
`
`IT IS SO STIPULATED.
`
`SainStore Technology Co., Ltd.
`
`ben b)
`G £2
`
`Le?
`
`(signature)
`
`
`
`
`
`CORRECTED
`CORRECTED
`EXHIBIT B
`EXHIBIT B
`
`
`
`
`
`
`
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`WASHINGTON, D.C.
`
`Before The Honorable Clark S. Cheney
`Chief Administrative Law Judge
`
`
`
`
`Inv. No. 337-TA-1426
`
`
`In the Matter of
`
`CERTAIN CRAFTING MACHINES AND
`COMPONENTS THEREOF
`
`
`[PROPOSED] CONSENT ORDER
`
`The U.S. International Trade Commission (“Commission”) has instituted an investigation
`
`of Respondent SainStore Technology Co., Ltd. (“SainStore”), pursuant to 19 U.S.C. § 1337 on a
`
`Complaint Under Section 337 of the Tariff Act of 1930, as amended, (“Complaint”) filed with
`
`the Commission by Complainant Cricut, Inc. (“Complainant” or “Cricut”). The Complaint
`
`contains certain allegations of unfair acts by SainStore and seeks relief against the importation
`
`into the United States, sale for importation into the United States, and sale after importation into
`
`the United States of certain cutting machines and heat press machines for use in crafting that
`
`allegedly infringe claims of U.S. Patent Nos. 11,208,758 (“the ’758 Patent”), 11,905,646 (“the
`
`’646 Patent”), D893,563 (“the ’563 Patent”), D910,724 (“the ’724 Patent”), and D926,237 (“the
`
`’237 Patent”) (collectively “the Asserted Patents”); and
`
`SainStore has executed a Consent Order Stipulation in which SainStore agrees to the
`
`entry of this Consent Order and to all waivers and other provisions as required by the
`
`Commission’s Rules of Practice and Procedure. SainStore has moved for an initial determination
`
`terminating this Investigation as to SainStore based on this Consent Order.
`
`NOW THEREFORE, the Commission issues the following Consent Order:
`
`
`
`1.
`
`The Complainant in this Investigation is Cricut, Inc., a corporation organized
`
`under the laws of the United States, having a principal place of business at 10855 South River
`
`Front Parkway, South Jordan, Utah 84095.
`
`2.
`
`The Respondent in this Investigation is SainStore Technology Co., Ltd., a
`
`corporation organized under the laws of China, having a principal place of business at Room
`
`908, Building 2, No. 16, Keji 4th Road, Songshan Lake Park, Dongguan City, Guangdong
`
`Province, China 523808.
`
`3.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(i), the Complaint alleges violations of
`
`Section 337 by SainStore based upon the sale for importation into the United States, the
`
`importation into the United States, and/or the sale within the United States after importation of
`
`certain cutting machines and heat press machines for use in crafting that allegedly infringe
`
`claims 18, 19-22 of the ’758 Patent, claims 8, 9, 10-11, 12, 14, 15-16 of the ’646 Patent, and the
`
`sole, unnumbered claims of the ’563 Patent, the ’724 Patent, and the ’237 Patent (collectively,
`
`“the Subject Articles”).
`
`4.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(ii), SainStore has executed a Consent Order
`
`Stipulation and stipulates to the entry of this Consent Order.
`
`5.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(iii), upon the entry of this Consent Order,
`
`SainStore shall not sell for importation into the United States, import into the United States, or
`
`sell within the United States after importation, directly or indirectly, and shall not aid, abet,
`
`encourage, participate in, or induce the sale for importation, the importation, or the sale after
`
`importation any of Subject Articles, except under consent or license from Complainant.
`
`6.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(iv), upon entry of this Consent Order,
`
`SainStore shall not sell within the United States or otherwise transfer (except exportation) any
`
`2
`
`
`
`remaining inventory of imported Subject Articles in the United States, except under consent or
`
`license from Complainant.
`
`7.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(v), SainStore shall cease and desist from
`
`importing and distributing Subject Articles in the United States.
`
`8.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(vi), SainStore shall be precluded from
`
`seeking judicial review or otherwise challenging or contesting the validity of this Consent Order.
`
`9.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(vii), SainStore shall cooperate with and shall
`
`not seek to impede by litigation or other means the Commission’s efforts to gather information
`
`under Subpart I of the Commission’s Rules of Practice and Procedure, 19 C.F.R. Part 210.
`
`10.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(viii), SainStore and its officers, directors,
`
`employees, agents, and any entity or individual acting on its behalf and with its authority shall
`
`not seek to challenge the validity or enforceability of the Asserted Patent claims in any
`
`administrative or judicial proceeding to enforce the Consent Order.
`
`11.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(ix), when the Asserted Patents expire this
`
`Consent Order shall become null and void as to such.
`
`12.
`
`Pursuant to 19 C.F.R. § 210.21(c)(x), if any of the claims of the Asserted Patents
`
`is held invalid or unenforceable by a court or agency of competent jurisdiction or if any article
`
`has been found or adjudicated not to infringe the asserted right in a final decision, no longer
`
`subject to appeal, this Consent Order shall become null and void as to such invalid or
`
`unenforceable claim or adjudicated article.
`
`13.
`
`Pursuant to 19 C.F.R. § 210.21(c)(4)(xi), SainStore has admitted that the
`
`Commission has in rem jurisdiction over SainStore’s Subject Articles that are the basis of this
`
`3
`
`
`
`Investigation, in personam jurisdiction over SainStore for the purposes of this Consent Order,
`
`and subject matter jurisdiction over this Investigation.
`
`14.
`
`Pursuant to 19 C.F.R. § 210.21(c)(xii), this Investigation is hereby terminated
`
`with respect to SainStore, provided, however, that enforcement, modification, or revocation of
`
`the Consent Order shall be carried out pursuant to Subpart I of the Commission’s Rules of
`
`Practice and Procedure, 19 C.F.R. Part 210.
`
`
`
`Dated: __________________
`
`
`
`
`
`BY ORDER OF THE COMMISSION
`
`
`Lisa R. Barton
`Secretary to the Commission
`
`
`
`4
`
`
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