Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov
`ESTTA686421
`ESTTA Tracking number:
`07/29/2015
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`92056833
`Defendant
`Illinois Tool Works Inc.
`MARK J LISS
`LEYDIG VOIT & MAYER LTD
`TWO PRUDENTIAL PLAZA, STE 4900
`CHICAGO, IL 60601
`UNITED STATES
`mzimmermann@leydig.com, mliss@leydig.com, kparks@leydig.com
`Other Motions/Papers
`Sarah E. Aagaard
`saagaard@leydig.com, mliss@leydig.com, mzimmermann@leydig.com
`/Sarah E. Aagaard/
`07/29/2015
`Plourde Declaration 7-28-15 FINAL - Public.pdf(1669694 bytes )
`Plourde Declaration Exhibit A 7-29-15.pdf(3998265 bytes )
`Plourde Declaration Exhibit B 7-28-15.pdf(3897720 bytes )
`
`Proceeding
`Party
`
`Correspondence
`Address
`
`Submission
`Filer's Name
`Filer's e-mail
`Signature
`Date
`Attachments
`
`

`

`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`POLY—AMERICA, L.P.,
`
`Petitioner,
`
`v.
`
`ILLINOIS TOOLS WORKS INC.,
`
`VVVVVVVVV
`
`Cancellation No. 92056833
`
`Registration Nos. 946120, 1055114,
`1294243
`
`
`Registrant.
`
`DECLARATION OF ERIC PLOURDE
`
`Eric Plourde, pursuant to 28 U.S.C. § 1746, declares as follows:
`
`1.
`
`I am over the age of 18 and am Manager, Intellectual Property at Zip-Pak, an
`
`Illinois Tool Works Inc. (“ITW”) company.
`
`I am competent to testify regarding the matters set
`
`forth herein and make this Declaration upon my personal knowledge.
`
`2.
`
`ITW is the owner of three trademark registrations covering the use ofa colored
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`line on plastic bags, zippers, and film, namely Registration Nos. 946120, 1294243, and 1055114.
`
`3.
`
`4.
`
`ITW calls its trademark for this colored line the “Color Line Trademark.”
`
`Registration No. 1294243 (“the ‘243 Registration”) covers use of the Color Line
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`Trademark in connection with “recloseable film tubing and plastic film sheeting, not for
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`wrapping.” The Registration Certificate specifies that the mark “consists of a continuous colored
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`stripe extending for the length of plastic film tubing and plastic film sheeting having a
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`continuous recloseable strip on the surface.” The product covered under this registration is an
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`interim product created in order to make a completed plastic bag.
`
`

`

`5.
`
`The consumers for this type of product would be bag manufacturers who are in
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`turn using the product to create a finished bag that can be sold to either industrial or consumer
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`bag markets.
`
`6.
`
`Registration No. 1055114 (“the ‘1 14 Registration”) covers use ofthe Color Line
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`Trademark in connection with “flexible plastic recloseable fastener strips.” The Registration
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`Certificate specifies that the mark is “lined for the color red, however, no claim is made to
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`color.” The product covered under this registration is the zipper closure mechanism that is
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`ultimatelyjoined with the top portion ofa plastic bag in order to create a recloseable plastic bag.
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`7.
`
`Products marked with the Color Line Trademark as covered by the ‘ 1 14
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`Registration are manufactured and sold by ITW’s Zip-Pak business unit into the industrial
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`market, specifically to consumer packaged goods companies. By way of example, a company
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`such as Kraft would purchase a zipper from ITW’s Zip-Pak business unit, and attach the zipper
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`to a bag containing a food product such as sliced cheese. The finished packaged cheese product
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`in a recloseable bag is then sold to consumers, such as in a grocery store. Today, ITW sells
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`recloseable plastic fastener strips (or zippers) through its Zip-Pak unit, into the industrial market
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`bearing the Color Line Trademark.
`
`8.
`
`Registration No. 946120 (“the ‘120 Registration”) covers use of the Color Line
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`Trademark in connection with “plastic bags.” The Registration Certificate specifies that the
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`mark “consists of a horizontal stripe adjacent the bag top lined for the color red, however, no
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`claim is made to any specific color apart from the mark as shown.” The product covered under
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`this Registration is the completed plastic bag.
`
`

`

`9.
`
`In practice, products marked with the Color Line Trademark as covered by the
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`‘120 Registration are manufactured and sold by ITW’s licensees into the industrial markets and
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`consumer storage retail markets, among others.
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`10.
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`ITW licenses use ofthe Color Line Trademark to major market players selling
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`recloseable plastic bags, many of which are ultimately sold to consumers.
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`CONFIDENTIAL
`
`12.
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`ITW enforces its licenses through various quality control efforts. On an annual
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`basis, ITW solicits from licensees or purchases on the open market samples of bags produced by
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`its licensees, and tests them for compliance with license terms.
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`13.
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`ITW has received several exclusion orders from the International Trade
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`Commission which have resulted in the Color Line Trademark registrations being placed on
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`watches with US. Customs and Border Enforcement.
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`ITW regularly offers training to US.
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`Customs and Border Control officers to assist them in identifying unauthorized imports.
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`Through this method, ITW ensures that unauthorized foreign-made bags, films, and zippers
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`bearing the Color Line Trademark cannot enter the US. market. As an example, a true and
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`correct copy of an exclusion order published in March 1989 is attached as Exhibit A.
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`In
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`addition, attached as Exhibit B are true and correct copies of US Customs training documents
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`provided by ITW to US. Customs and Border Control regarding the Color Line Trademark
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`registrations.
`
`

`

`14.
`
`ITW also enforces its Color Line Trademark rights against third parties that would
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`seek to use the Color Line Trademark without authorization. Specifically, ITW sends cease and
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`desist letters and contacts those manufacturing and purchasing bags and bag components bearing
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`unauthorized uses of the Color Line Trademark. Through these contacts, ITW has successfully
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`prevented third parties from using the Color Line Trademark without authorization.
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`15.
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`ITW is currently unaware of any unauthorized third party uses of the Color Line
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`Trademark in the United States.
`
`16.
`
`As far as ITW is aware, bags bearing the Color Line Trademark have no
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`functional advantage to the consumer over bags without color. Bags without color do compete
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`effectively in the marketplace.
`
`17.
`
`When creating a recloseable plastic bag, plastic recloseable film tubing or
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`sheeting, or the recloseable fastener zipper strip, the overall process is similar.
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`In each instance,
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`if color is to be added to the closure mechanism, such color is added to the strip.
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`It does not
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`change the mechanics of the closure profile.
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`18.
`
`The additional resin and time required to set up the machinery to produce a bag,
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`film, or zipper with color adds to the overall cost ofthe bag, film, and/or zipper.
`
`l9.
`
`Poly-America is not a competitor of ITW or its predecessors in interest.
`
`[Signature follows on next page]
`
`

`

`I declare under penalty of perjury that the foregoing is true and correct.
`
`’1
`Date: Julyri’ZJ 2015
`-
`
`E; fl @-......
`
`Eric Plourde
`
`
`
`

`

`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Petitioner,
`
`v.
`
`
`
`POLY-AMERICA, L.P.,
`
`
`
`
`
`ILLINOIS TOOLS WORKS INC.,
`
`
`
`
`Registrant.
`
`
`
`
`Cancellation No. 92056833
`
`Registration Nos. 946120, 1055114,
`1294243
`
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
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`
`
`
`
`
`
`DECLARATION OF ERIC PLOURDE
`
`EXHIBIT A
`
`

`

`In the Matter of
`CERTAIN RECLOSABLE PLASTIC BAGS
`AND TUBING
`"
`
`
`
`Investigation No; 337-TA—266
`
`
`
`
`
`USiTC PUBLICATION 2171
`
`MARCH 1989
`
`United States International. Trade Commissionw
`
`Washington, DC 20436
`
`‘
`
`
`
`ITW0006692
`ITW0006692
`
`

`

`UNITEDfiSTATES INTERNATIONAL ,TRADE COMMISSION
`
`
`
`
`
`
`
`COMMISSIONERS,
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`
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
`
`
`
`
`Susan Liebeler, Chai‘i'man
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`
`
`
`
`Anne E. Brunskdale, Vice Chairman
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`
`
`Alfred E. Eckes
`L
`'
`,
`
`
`" Seeley G L0dwick
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`
`David B.’Rovhr
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`
`
`Ronald A. Cass '
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`Address allr,communications to ,.
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`
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`Kenneth R. Mason, secretary to\the Commission
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`United States International Trade Commission V
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`
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`Washington, DC 20436
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`
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`\,
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`ITW0006693
`ITW0006693
`
`

`

` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
`
`UNITED STATES INTERNATIONAL TRADE COMMISSION
`
`
`
`
`
`Nashington, DC 20436
`
`
`
`
`T
`
`J;
`C")
`
`_
`
`)
`)
`)
`
`) ) )
`
`In the Matter of
`-'
`CERTRIN RFCLOSOBLE PLASTIC EGGS
`
`AND TUBING
`
`NOTICE OF ISSUANCE OF
`
`
`EXCLUSION ORDER
`
`
`
`
`
`AGENCY: U.S. International Trade Commission.
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`ACTION:
`The Commission has determined to issue a general exclusion order in
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`the abovewcaptioned investigation.
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`AUTHORITY;
`The authority for the Commission's action is contained in section
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`337 of the Tariff Act of 1930 (19 U.S.C.
`§ 1337) and in sections 210.53—.58 of
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`the Commission's Rules of Practice and Procedure (19 C.F.R.
`§ 210.53~.58).
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`The Commission has further determined that the public interest factors
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`enumerated in section 337(d)
`(19 U.S.C.
`§ 1337(d)) do not preclude issuance of
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`the aforementioned general exclusion order and that the bond during the
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`Presidential review period should be in the amount of 460 percent of the
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`entered value of the articles concerned.
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`Paul R. Bardos, Esq., Office of the General
`FOR FURTHER INFORMATION CONTACT:
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`
`
`Counsel. U.S. International Trade Commission,
`telephone 202m252—1102.
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`
`
`
`Inc. filed a
`On March 25, 1987, Minigrip,
`SUPPLEMENTARY INFORMATION:
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`complaint and a motion for temporary relief under section 337, alleging a
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`violation of section 337 in the unlawful
`importation and sale of certain
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`
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`reclosable plastic bags and tubing manufactured abroad according to a process
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`if practiced in the United States, would infringe claims 1-5 of U.S.
`which,
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`Letters Patent 3,945,872 and bearing a color line mark infringing U.S,
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`Trademark Registration No. 946,120,
`the effect or tendency of which is to
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`destroy or substantially injure an industry, efficiently and economically
`' operated,
`in the United States.
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
`
`ITW0006694
`ITW0006694
`
`
`the public interest,
`SUMMARY: Having determined that the issues of remedy,
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`and bonding are properly before the Commission, and having examined the
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`written submissions filed on remedy,
`the public interest, and bonding, as well
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`as those portions of the record relating to those issues,
`the Commission has
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`determined to issue a general exclusion order prohibiting entry into the
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`United States, except under license, of (1) reclosable plastic bags and tubing
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`manufactured according to a process which,
`if practiced in the United States,
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`would infringe claims 1, 3, 4, or 5 of U.S. Letters Patent 3,945,872, and (2)
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`reclosable plastic bags and tubing which infringe U.S. Trademark Registration
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`No. 945,120.
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`

`

` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`By order of the Commission.
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`Yhe Commission instituted an investigation and named 20 Firms as
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`respondents..-Two firms were later added as respondents.
`On November 30,
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`the Commission issued a temporary exclusion order.
`Subsequently, eight
`1987,
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`respondents were terminated from the investigation on the basis of a
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`settlement agreement, and 12 respondents were held in default.
`On January 29,
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`the presiding administrative law judge issued an initial determination
`1988,
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`([0) Finding a violation of section 337.
`On March 15, 1988,
`the Commission
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`issued a notice of nonreview of the ID.
`The parties and interested members of
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`the public were requested to file briefs on remedy,
`the public interest, and
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`bonding. Notice of the Commission‘s decision not
`to review the ID was
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`published in the Egggrgl Register, 53 F.R. 9495 (March 23, 1988).
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`Complainant,
`the Commission investigative attorney, and two nonparties
`submitted briefs.
`No other submissions were received.
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`the Commission Opinion in support
`Copies of the Commission‘s Order,
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`therof, and all other nonconfidential documents filed in connection with this
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`investigation are available for inspection during official business hours
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`to 5:15 p.m.)
`in the Office of the Secretary, U.S. International
`(8:45 a.m.
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`Trade Commission, 500 E Street sw., Washington, DC 20436,
`telephone
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`202~252n1000. Hearing~impaired individuals are advised that
`information on
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`this matter can be obtained by contacting the Commission's TDD terminal on
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`202-252—1305.
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
`a/fi“—*’—:WL«
`r”Ix—ms.
`
`Kenneth R. Mason
`
`
`
`Secretary
`
`/./
`
`
`
`
`Issued: April 29, 1988
`
`
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`ITW0006695
`ITW0006695
`
`

`

`UNIlED $THTES INTERNATIONHL TRRDE COMMISSION
`
`washington, DC 20436
`
`)
`
`) )
`
`........_..mum—u"...——....i......__...~......._...._......._..
`
`~
`In the Matter of
`
`)
`CERTREN RECLOSfiBLE PLASTIC BAGS
`)
`AND TUBING
`............................................................................._)
`
`
`Investigation No. 337wTflw266
`
`
`
`
`
`ORDER
`
`
`
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`The Commission, having determined that the issues of remedy,
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`the public
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`interest, and bonding are properly before it, and having examined the written
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`submissions filed thereon, as well as the relevant portions of the record,
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`and
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`having determined that the public interest factors enumerated in section
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`337(d),
`
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`order,
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`19 U.S.C.
`
`
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`§ 1337(d), do not preclude issuance of a general exclusion
`
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`it is hereby
`
`
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`ORDERED:
`
`Reclosable plastic bags and tubing manufactured abroad
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`
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`according to a process which,
`if practiced in the United
`
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`States, would infringe claims 1, 3, 4, or 5 of U,S.
`
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`Letters Patent 3,945,872 are excluded from entry into the
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`United States for the remaining life of the patent, except
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`under bond as provided in paragraph 3 below and except as
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`may be licensed by the patent owner;
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`Reclosable plastic bags and tubing which infringe U.S.
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`Trademark Registration No. 946,120 are excluded from entry
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`into the United States, except under bond as provided in
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`paragraph 3 below and except as may be licensed by the
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`trademark owner;
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`The articles covered by this Order are entitled to entry
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`into the United States under bond in the amount of 460
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`percent of the entered value of such articles,
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`day after this Order is received by the President,
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`pursuant
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`Act of 1930, until such time as the President notifies the
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`but no later than 60 days after the date of receipt of
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`this Order by the President;
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`ITW0006696
`ITW0006696
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`

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`4.
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`B order of the Commission.
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`y
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`Notice of this Order shall be published in the federal
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`Register and this Order and the Commission Opinion in
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`support thereof shall be served upon each party of record
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`to this investigation and upon the Department of Health
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`and Human Services,
`the U.S. Department of Justice,
`the
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`Federal Trade Commission, and the Secretary of the
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`Treasury.
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`./
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`// /’
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`hfl/C 1"...—
`Kenneth R. Mason
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`Secretary
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`Issued: April 29, 1988
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`ITW0006697
`ITW0006697
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`[1.1.1. IED STATES INTERNM'IONHL ‘1 HADE’
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`.IMM] 51510!“
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`Washington, DC 20436
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`[nv. No. 337--Tn~266
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`) ) )
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`)
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`) ) )
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`In the Matter of
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`CERTAIN RECLOSABLE PLASTIC sacs
`mm TUBING
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`COMMISSION OPINION
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`On January 29, 1988,
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`the presiding administrative law judge (flLJ)
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`issued
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`an initial determination (ID) finding a violation of section 337 (19 U,S.C.
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`§ 1337) of
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`the Tariff Act of 1930.
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`On March 16, 1988,
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`the Commission issued a
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`notice of nonreview of the ID. This opinion discusses the Commission's
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`determinations regarding the issues of remedy,
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`the public interest, and
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`bonding.
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`Erocedural‘flistggy
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`On March 25, 1987, Minigrip,
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`Inc. filed a complaint and a motion for
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`temporary relief under section 337, alleging violation of section 337 in the
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`unlawful
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`importation and sale of certain reclosable plastic bags and tubing
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`manufactured abroad according to a process which,
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`if practiced in the United
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`States, would infringe claims 1—5 of U.S. Letters Patent 3,945,872 (the '872
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`patent) and bearing a color line mark infringing U.S. Trademark Registration
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`No. 946,120 (the colorline trademark),
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`the effect or tendency of which is to
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`destroy or substantially injure an industry, efficiently and economically
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`operated,
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`in the United States.
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`On April 21, 1987,
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`the Commission instituted an investigation based on
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`Minigrip's complaint.
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`A notice of investigation was published in the federal
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`Register, 52 F.R, 15568 (April 29, 1987).
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`Twenty firms were named as
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`respondents in that notice: Meditech International Co.
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`(Meditech); Polycraft
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`ITW0006698
`ITW0006698
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`Corp.
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`(Polycraft); Euroweld Distributing (Euroweld); Chung Kong Industrial
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`(Chung Kong); Gideons Plastic Industrial Co.,
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`Co., Ltd:
`Plastic Industrial Co., Ltd.
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`(Gideons); Ideal.
`(Ideal); Lien Bin Plastics Co., Ltd.
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`Inc.
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`(Lien Bin);
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`Ta Sen Plastic Industrial C0,, Ltd.
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`(Ta Sen); Teck Keung Manufacturing, Ltd.
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`(Teck Keung); Insertion advertising Corp. (Insertion); Ka Shing Corp.
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`(Ka
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`Shing); Tracon Industries Corp.
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`(Tracon); Nina Plastic Bags,
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`Inc.
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`(Nina); Lim
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`Tai Chin Pahathet 60., Ltd.
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`(Lim Tai Chin); Siam Import—Export Ltd.
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`(Siam);
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`Roleak Sdn Bhd (Roleak); Chang won Chemical Co., Ltd.
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`(Chang won); Hogn Ter
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`Product Co., Ltd.
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`(Hogn Ter); C.H.G. Enterprise Pte. Ltd. (c.n.o.); and Kwang
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`I1.
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`Subsequently, Keron Industrial Co., Ltd.
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`(Keron) and Daewang
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`International Corp.
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`(Daewang) were added as respondents.
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`On November 30,
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`1987,
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`the Commission issued a temporary exclusion order.
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`Subsequently,
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`respondents Meditech, Euroweld, Polycraft, Chung Kong, Gideons, Lien Bin,
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`Karon, and Daewang were terminated from the investigation on the basis of a
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`settlement agreement, and all but
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`two (Chang Won and Kwang Il) of the
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`remaining respondents were held in default.
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`The presiding ALJ held an evidentiary hearing on December 4, 1987, at
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`which complainant,
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`respondents, and the Commission investigative attorney were
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`afforded an opportunity to be heard.
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`On January 29, 1988,
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`the ALJ
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`issued an
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`On March 16, 1988,
`ID finding a violation of section 337. 1/ ;/
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`1/ Respondents C.A.G., Siam, and Hogn Ter were found to infringe claims 1,
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`3, 4, and 5 of the '872 patent. Respondents Chang Hon, Kwang Il, Lim Tai, and
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`Rol—Pak, and nonrespondent Harbona were found to infringe claims 1 and 5 of
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`the '872 patent. Respondents Ideal, Ta Sen, and Teck Keung were found to
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`infringe claim 1 of the '872 patent. Respondents Insertion, Ka Shing, Nina,
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`and Tracon were found not
`to infringe any of the claims at issue of the '872
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`patent.
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`;/ Respondents C.A.G., Siam, Hogn Ter, Chang won, Kwang Il, Lim Tai,
`(Roleak, Ideal, Ta Sen, Ka Shing, Nina, and nonrespondent Harbona were found
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`to infringe the colorline trademark. Respondents Insertion, Teck Keung, and
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`Tracon were found not
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`the
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`ITW0006699
`ITW0006699
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`

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`Commission issued a notice of nonreview of
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`the ED,
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`Notice of the Commission's decision not
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`to review the ID was published in
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`the fiederal Register,
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`53 F.R. 9495 (March 23, 1988).
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`In that notice,
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`the
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`parties and interested members of the public were requested to file briefs on
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`the issues of remedy,
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`the public interest, and bonding. Complainant,
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`the
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`Commission investigative attorney, and two nonparties submitted briefs.
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`No
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`other submissions were received.
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`1.
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`.msex
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`[218 92.151
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`we have determined to issue a general exclusion order prohibiting the
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`importation. except under license, of (i) all reclosable plastic bags and
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`tubing manufactured abroad according to a process which would infringe claims
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`1, 3, 4, or 5 of the '872 patent if practiced in the United States; and (ii)
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`all reclosable plastic bags and tubing which infringe the colorline trademark.
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`The Commission set out standards for issuing general exclusion orders in
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`gefleieiiirlesiflsiefc Seax Puwseee Components Thereof (§praxP um).
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`Invi
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`No. 337mTAm90, USITC Pub. No. 1199, at 17~19. Under Spray Pumps, a general
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`exclusion order is appropriate when there is proof of (1) a widespread pattern
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`of unauthorized use of the patented 3/
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`invention, and (2) ”certain business
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`conditions from which one might reasonably infer that foreign manufacturers
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`other than respondents to the investigation may attempt
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`to enter the U‘S,
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`market with infringing articles."
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`_.3/ The Spray Pumps criteria are couched in terms of investigations involving
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`patents, but
`they apply with equal validity to investigations involving
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`trademarks.
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`ITW0006700
`ITW0006700
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`In this investigation, we have found that several respondents and a
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`nonrespondent infringe the ‘872 patent and/or the colorline trademark, and
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`that several
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`firms have already imported and sold infringing bags despite the
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`exclusion order issued at the conclusion of ITC Inv. No. 337wTAw110.
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`The
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`first element of §pray_figmgs appears to be satisfied.
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`Complainant's sales and efforts to expand its capacity attest to the
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`existence of an established demand for the product.
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`As noted above, we have
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`found that imports from respondents and a nonparty which infringe the '872
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`patent and/or the colorline trademark have already been marketed in the United
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`States. We have further found that significant foreign production capacity
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`for producing infringing bags already exists, part of which was found to be
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`controlled by a nonparty.
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`Two other nonparties have filed remedy comments,
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`Thus the second element of §pray Pumps appears to be established and business
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`conditions appear appropriate for the issuance of a general exclusion order.
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`We note that a test is now available for use in determining whether a
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`given reclosable plastic bag is produced by a process which infringes the '872
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`patent. This test is based on the principles of birefringence. Briefly, a
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`Heat-Seal—OwScope enables an observer to see whether bright blue bands of
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`color appear when polarized light is passed through the reclosable plastic bag
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`being tested,
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`indicating that it is birefringent and therefore infringing.
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`Complainant says that it can provide the U.S. Customs Service with sufficient
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`Heat—Seal—O—Scope: for Customs‘ use.
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`Complainant also seeks the issuance of cease and desist orders.
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`We have
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`determined not to issue such orders, since the existing temporary exclusion
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`order and the exclusion order issued at the conclusion of ITC Inv. No.
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`ITW0006701
`ITW0006701
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`337wTAw110 should have limited the amount of importation and inventory buildup
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`by importers.
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`The main sources of infringing bags are overseas producers
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`rather than domestic importers'
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`inventories.
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`Rn exclusion order is a more
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`appropriate and effective form of relief as to foreign manufacturers.
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`III
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`893.119.323.122.
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`The Commission may issue an exclusion order only after ”considering the
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`effect of such exclusion upon the public health and welfare, competitive
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`conditions in the United States economy,
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`the production of like or directly
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`competitive articles in the United States, and United States consumers."
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`19
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`U.S.C. 1337(d). We are aware of no public interest factors that would
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`preclude issuance of the aforementioned general exclusion order.
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`III .
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`3.9111.qu
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`In determining the amount of the bond,
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`the Commission looks to the amount
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`sufficient to “offset any competitive advantages resulting from the unfair
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`method of competition or unfair act enjoyed by persons benefitting from the
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`importation.“
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`8. Rep. No. 1298, 93d CongW 2d Sess.
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`198 (1974).
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`we have
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`determined to impose a bond of 460 percent of the entered value of the
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` zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
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`articles in question.
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`Our determination of the amount of the bond, 460 percent of entered
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`value,
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`is based on calculation of an average of the amounts by which
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`infringing imports undersell complainant's product, as calculated by the
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`Commission investigative attorney. We note that the U.S. Customs Service has
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`requested that bonds be calculated as a percentage of entered value.
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`Complainant argued for a bond of 755 percent of entered value, which
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`would match the largest margin of underselling among the respondents.
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`We have
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`ITW0006702
`ITW0006702
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`determined not to adopt complainant's position because a bond of 460 percent
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`of entered value will generally offset the advantage of persons benefitting
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`from importation, Although, unlike the higher bond recommended by
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`complainant,
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`underseller,
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`it will not offset the underpricing of the most extreme
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`it will also not require other,
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`less extreme undersellers to post
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