OT:RR:BSTC:EOE H341926 JRW

Mr. Tommy Martin
700 K Street, NW
Washington, DC 20001-5692
USA

VIA EMAIL: [email protected]

RE: Ruling Request; U.S. International Trade Commission; General Exclusion Order; Investigation No. 337-TA-1174; Certain Toner Cartridges, Components Thereof, and Systems

Dear Mr. Martin:

Pursuant to 19 C.F.R. Part 177, the Exclusion Order Enforcement Branch (“EOE Branch”), Regulations and Rulings, U.S. Customs and Border Protection (“CBP”) issues this ruling letter in response to Brother Industries, Ltd.; Brother International Corporation (U.S.A.); and Brother Industries (U.S.A.), Inc. (collectively, “Brother’s”) request for an administrative ruling, dated September 20, 2024 (“Ruling Request”). We find that Brother has established, through this inter partes proceeding, that certain TN830 “compatible” toner cartridges should be excluded from entry for consumption into (collectively, “articles at issue”), as described in this ruling, are subject to exclusion from entry based on the general exclusion order (“GEO”) issued by the U.S. International Trade Commission (“Commission”) in Investigation No. 337-TA-1174 (“the underlying investigation” or “the 1174 investigation”), under Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1337 (“Section 337”), 1 unless and until this ruling letter is revoked or 1 The GEO issued in the 1174 investigation bars the unlicensed entry for consumption into the United States of toner cartridges, components thereof, and systems containing same, as defined in ¶ 1 of the GEO, that infringe one or more of Claims 1-5, 10, and 12-15 of U.S. Patent No. 9,785,093 (“the ’093 Patent”); Claims 1, 7-11, 15, and 16 of U.S. Patent No. 9,575,460 (“the ’460 Patent”); Claims 1-7 and 9 of U.S. Patent No. 9,568,856 (“the ’856 Patent”); Claims 1, 4, 5, and 9 of U.S. Patent No. 9,632,456 (“the ’456 Patent”); and Claims 1, 3, 5, 7-12, and 18 of U.S. Patent No. 9,846,387 (“the ’387 Patent”) (collectively, the “Asserted Patents”). See Certain Toner Cartridges, Components Thereof, and Systems Containing Same, Investigation No. 337-TA-1174, EDIS Doc. ID 726161, General Exclusion Order (November 23, 2020) (“1174 GEO”). modified pursuant to 19 C.F.R. § 177.12. We further note that determinations of the Commission resulting from the underlying investigation or a related proceeding under 19 C.F.R. Part 210 are binding authority on CBP and, in the case of conflict, will modify or revoke by operation of law any contrary CBP ruling or decision pertaining to Section 337 exclusion orders.

As noted above, this ruling letter is the result of a request for an administrative ruling from CBP under 19 C.F.R. Part 177 that the EOE Branch conducted on an inter partes basis. The proceeding involved the following parties with a direct and demonstrable interest in the question presented by the ruling request: (1) your client, Brother, the ruling requester, complainant and patent owner from the 1174 investigation; and (2) Hunan Anhe Technology Co., Ltd. (“Hunan Ahne”); MILLMIX INC (“MILLMIX”); Topjet Technology Co., Ltd. (“Topjet”); Shenzhen Moan Technology Co., Ltd. (“Moan Tech.”); Shenzhen Haichuang E-Commerce Trading Co., Ltd. (“Haichuang E-Comm.”); Zhuhai Xucai Electronic Commerce Co., Ltd. (“Xucai E-Comm.”); and Shenzhen Xiyu Technology Co., Ltd. (“Xiyu Tech.”) (collectively, “Accused Infringers”). See 19 C.F.R. § 177.1(c).

On September 20, 2024, Brother submitted its Ruling Request to the EOE Branch. Brother Email to EOE Branch, dated September 20, 2024. In its email, Brother (1) confirmed the counsel for Accused Infringers to whom the ruling request was concurrently sent (via certified mail and email to counsel of Accused Infringers 2) and (2) confirmed that there is no confidential information in the materials linked. Id. The EOE Branch confirmed receipt of the Ruling Request as well as the documents associated with the same. EOE Branch Email to Brother and Accused Infringers, dated September 20, 2024. Due to the lack of a response from the Accused Infringers, on September 25, 2024, the EOE Branch, set forth, in an email to the Accused Infringers:

The Exclusion Order Enforcement Branch (the “EOE Branch”) has not received any responses to Brother’s email below (dated September 20, 2024), requesting an administrative ruling under 19 C.F.R. § 177. The EOE Branch conducts such ruling requests on an inter partes basis with the ruling requester and the other interested party to the question presented (such as a foreign manufacturer, exporter, or importer of the articles at issue). It is our understanding that, by way of your inclusion in Brother’s email below, you represent in some capacity one of the parties that has a direct and demonstrable interest in the question presented by this ruling request. Please confirm whether you represent such a party and that you have notified your client or company regarding this inter partes proceeding for its participation in the adjudication of the articles at issue.

EOE Branch Email to Accused Infringers, dated September 25, 2024.

In its email, the EOE Branch further provided:

2 The email was sent to Anhe Tech’s trademark counsel Evelyn Ufomadu; MILLMIX’s trademark counsel Kaitlyn Haven; Topjet’s trademark counsel Evelyn Ufomadu, its prior Part 177 counsel David Farnum, and three secondary correspondent emails provided to the USPTO; Moan Tech’s trademark counsel Victoria Velazquez Walker and a secondary correspondent email provided to USPTO; Haichuang E-Comm’s trademark counsel Victoria Velazquez Walker; Xucai E-Comm’s trademark counsel Evelyn Ufomadu; and Xiyu Tech’s trademark counsel Yanghao Liu Significantly, the EOE Branch notes that the Federal Circuit has held, with regard to service on foreign entities, that “service does not need to have been attempted under the Hague Convention before alternative service methods can be employed.” Nuance Communs. Inc. v. Abbyy Software House, 626 F.3d 1222, 1237 (Fed. Cir. 2010). Instead, alternative service is allowed “as deem[ed] appropriate,” which includes substitute service pursuant to the Federal Rules of Civil Procedure, such as Fed. R. Civ. P. 4(f)(3), to include “service via e-mail.” Id. at 1237-40. While the Federal Rules of Civil Procedure do not cover the EOE Branch’s inter partes proceedings, the procedures provided for or considered permissible are instructive.

Additionally, the EOE Branch provided as additional support for acceptable alternative service on foreign-located defendants:

As an example, the Federal Circuit in Nuance cited Rio Props. Inc. v. Rio Int’l Interlink, where the Ninth Circuit affirmed not only “court-ordered alternative service methods on a Costa Rican business entity under Rules 4(f)(3) and 4(h)(2)” but allowed “[i]n addition to service via e-mail . . . substitute service through the mail both to the U.S. office of the defendant's international courier and on the defendant's California based attorney.” Id. (citing Rio Props. Inc. v. Rio Int’l Interlink, 284 F.3d 1007, 1016-19 (9th Cir. 2002)). Similarly, the U.S. Court of International Trade has held that its rules “permit[] service on a foreign-located defendant through its U.S.-located counsel.” United States v. Koehler, 2024 Ct. Intl. Trade LEXIS 98, *12 (Ct. Int’l Trade, 2024).

The EOE Branch stated in conclusion that, due to the foregoing reasons, Brother’s means of service (specifically, certified mail and email to counsel of Accused Infringers) constituted sufficient notice unless the EOE Branch heard otherwise from any individual copied on the email. Id. It further requested that counsel of the Accused Infringers respond to the message by close of business on Friday, September 27, 2024. Id. The EOE Branch further stated that “[i]n the absence of a response, the EOE Branch will take action as appropriate.” Id. None of the Accused Infringers responded to this communication.

A. The Articles at Issue

Brother requested a ruling that “certain TN830 ‘compatible’ toner cartridges should be excluded from entry for consumption into the United States pursuant to 1174 GEO. Ruling Request at 1. The articles at issue consist of two different toner cartridge designs across the thirteen different TN830 “compatible” toner cartridges sold by the seven Accused Infringers. Ruling Request at 24. Brother provides that “The TN830 ‘compatible’ toner cartridges imported and sold in the United States by Hunan Ahne, MILLMIX, Topjet, Moan Tech., Haichuang E-Comm., and Xucai E-Comm. were all identical to each other and are referred to collectively hereinafter as the ‘Type A Cartridges.’” Id.

Brother states that the “Type B Cartridges,” which apply to “the TN830 ‘compatible’ toner cartridge imported and sold in the United States by Xiyu Tech.” is different than the Type A Cartridges, but “the differences are irrelevant in the context of the infringement analysis,” and that “the TN830 ‘compatible’ toner cartridge imported and sold in the United States by Xiyu Tech. was identical to Brother’s own TN830 toner cartridge and is considered to be what is known in the industry as a ‘dead copy.’” Id.

The articles at issue, specifically, Type A and Type B cartridges, are shown below:

______ Id. at 24.

Brother argued, inter alia, that: “[t]he electrode configurations of the Type A Cartridges, Type B Cartridge[s], and genuine Brother TN830 toner cartridges are not only similar to each other in all relevant respects, they also are similar to the electrode configurations the Commission found to infringe the Electrode Patents during the 1174 Investigation,” with the primary difference between electrode configurations in these toner cartridges being “the amount of material disposed between the two electrodes,” which Brother notes is “irrelevant to the issue of infringement.” Id. at 24-25. The difference between the electrode configuration of the infringing cartridges (shown on the left) and Brother’s genuine cartridges (shown on the right) is depicted below:

Id. at 25.

B. Sufficient Notice and EOE Branch Position The initial issue is whether sufficient notice was provided to the Accused Infringers by Brother. As discussed supra, on September 20 , 2024, Brother submitted its Ruling Request to the EOE Branch. Brother Email to EOE Branch, dated September 20, 2024. In its email, Brother (1) confirmed the counsel for Accused Infringers to whom the ruling request was concurrently sent and (2) confirmed that there is no confidential information in the materials linked. Id. Due to the lack of a response from the Accused Infringers, on September 25, 2024, the EOE Branch sent an additional email to the Accused Infringers requesting a response by close of business on September 27, 2024. Id. In the email, the EOE Branch stated that Brother’s email to the EOE Branch dated September 20, 2024 constituted sufficient notice unless it heard otherwise from any individual copied on the email, and that in the absence of a response, the EOE Branch would take appropriate action. Id.

As provided for in the EOE Branch email dated September 25, 2024, the Federal Circuit in Nuance cited Rio Props. Inc. v. Rio Int’l Interlink, where the Ninth Circuit affirmed not only “court-ordered alternative service methods on a Costa Rican business entity under Rules 4(f)(3) and 4(h)(2)” but allowed “[i]n addition to service via e-mail . . . substitute service through the mail both to the U.S. office of the defendant's international courier and on the defendant's California based attorney.” Id. (citing Rio Props. Inc. v. Rio Int’l Interlink, 284 F.3d 1007, 1016-19 (9th Cir. 2002)). Similarly, the U.S. Court of International Trade has held that its rules “permit[] service on a foreign-located defendant through its U.S.-located counsel.” United States v. Koehler, 2024 Ct. Intl. Trade LEXIS 98, *12 (Ct. Int’l Trade, 2024).

Additionally, as provided for in the EOE Branch email to the Accused Infringers, the Federal Circuit has held, with regard to service on foreign entities, that “service does not need to have been attempted under the Hague Convention before alternative service methods can be employed.” Nuance Communs. Inc. v. Abbyy Software House, 626 F.3d 1222, 1237 (Fed. Cir. 2010). Instead, alternative service is allowed “as deem[ed] appropriate,” which includes substitute service pursuant to the Federal Rules of Civil Procedure, such as Fed. R. Civ. P. 4(f)(3), to include “service via e-mail.” Id. at 1237-40. Therefore, as also provided in the EOE Branch email, while the Federal Rules of Civil Procedure do not cover the EOE Branch’s inter partes proceedings, the procedures provided for or considered permissible are instructive. Id. As such, the EOE Branch finds that Brother provided sufficient notice to the Accused Infringers.

C. Default and EOE Branch Position

The EOE Branch finds that the Accused Infringers’ lack of response to the sufficient notice provided to them warrants the issuance of a ruling finding such Accused Infringers in default. In United States v. E.G. Plastics, Inc., the Court of International Trade granted the government’s motion for default judgment where the defendant “failed to appear, plead, or otherwise defend itself in [the] action.” 494 F. Supp. 3d 1361, 1362 (2021). “A defendant who defaults thereby admits all well-pleaded factual allegations contained in the complaint.” Id. at 1363 (citing United States v. NYCC 1959, Inc., 40 CIT , , 182 F. Supp. 3d 1346, 1347 (2016) (citing City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 137 (2d Cir. 2011)); United States v. Deladiep, Inc., 41 CIT , , 255 F. Supp. 3d 1326, 1336 (2017) (citing Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61, 65 (2d Cir. 1981)).) Specifically, E.G. Plastics found that the government’s factual allegations, admitted as true, established the defendant’s liability as a matter of law. Id. at 1364. Turning to the instant case, the Accused Infringers also failed to appear, plead, or otherwise defend themselves with respect to the Ruling Request despite sufficient notice from Brother and additional notice from the EOE Branch via its email sent on September 25, 2024. As such, the EOE Branch finds the Accused Infringers in default, and accordingly, that the Accused Infringers admit all well-pleaded factual allegations contained in Brother’s complaint. The remaining issue then, is whether Brother’s factual allegations, admitted as true, establish the Accused Infringers’ liability as a matter of law. In its Ruling Request, Brother asserts that the TN830 “compatible” toner cartridges imported and sold in the United States by the Accused Infringers infringe at least Claim 1 of the ‘856 Patent and at least Claim 1 of the ‘456 Patent. Ruling Request at 1-2.

D. Accused Infringers’ Liability as a Matter of Law

Brother states that there are “only two different toner cartridge designs across the thirteen different TN830 “compatible” toner cartridges sold by the seven Accused Infringers.” Ruling Request at 24. Brother provides that “The TN830 ‘compatible’ toner cartridges imported and sold in the United States by Hunan Ahne, MILLMIX, Topjet, Moan Tech., Haichuang E-Comm., and Xucai E-Comm. were all identical to each other and are referred to collectively hereinafter as the ‘Type A Cartridges.’” Id. Brother states that the “Type B Cartridges,” which apply to “the TN830 ‘compatible’ toner cartridge imported and sold in the United States by Xiyu Tech.” is different than the Type A Cartridges, but “the differences are irrelevant in the context of the infringement analysis,” and that “the TN830 ‘compatible’ toner cartridge imported and sold in the United States by Xiyu Tech. was identical to Brother’s own TN830 toner cartridge and is considered to be what is known in the industry as a ‘dead copy.’” Id. Brother also provided claim charts showing how the Type A and Type B cartridges infringe Claims 1 of the ‘456 and ‘856 Patents. See Exs. AI- AL.

Brother further states:

The Accused Infringers all share several things in common. All seven Accused Infringers are selling, or have sold, toner cartridges on Amazon that are marketed as direct replacements for Brother’s TN830 model toner cartridges…All seven Accused Infringers are selling, or sold, these replacement toner cartridges under their own federally registered U.S. trademark…All seven Accused Infringers import their respective toner cartridges from China…All seven Accused Infringers practice at least Claim 1 of the ’856 Patent and Claim 1 of the ’456 Patent. All seven Accused Infringers are doing so without a license or permission from Brother.

Ruling Request at 11.

Admitted as true, Brother’s allegations establish the Accused Infringers’ liability as a matter of law. Specifically, such allegations would prove violation of the 1174 GEO by way of unlawful importation, sale for importation or sale within US after importation of certain toner cartridges, components thereof, and systems containing same that infringe one or more of claims 1-7, and 9 of ‘856 Patent and claims 1, 4, 5, and 9 of the ’456 Patent. Given that the well- pleaded facts in Brother’s Ruling Request, admitted as true, establish the Accused Infringers’ liability as a matter of law, the EOE Branch finds that Brother has established, through this inter partes proceeding, that the articles at issue are subject to exclusion from entry based on the 1174 GEO. The EOE Branch has maintained that:

As set forth in 19 C.F.R. § 177.2(b)(3), “[e]ach request for a ruling regarding the status of an article under any Customs or related law affecting the importation or arrival of that article should be accompanied by photographs, drawings, or other pictorial representations of the article and, whenever possible, by a sample article[.]” (emphasis added). In other words, it is the ruling requester who identifies the “article at issue” that forms the basis of the ruling request and provides information and evidence regarding the embodiment of that article by means of, inter alia, pictorial representations and a physical sample. Moreover, an admissibility determination in a ruling under 19 C.F.R. Part 177, including for purposes of a Section 337 exclusion order, is limited to the embodiment described and depicted therein. As such, a “determination in [an] administrative ruling does not apply to future products if the articles in question differ in any material way from those described [in the ruling].” CBP HQ Ruling H323308 at 23 (dated February 8, 2022). Instead, to the extent any articles attempting to make entry for consumption differ in a material respect from those described in the ruling, the admissibility determination in the ruling is not binding on CBP, as provided for in 19 C.F.R. §§ 177.2(b)(1), (2), (4), and 177.9(b)(1) and (2), and the burden to establish admissibility remains. See CBP HQ Ruling H324813 at 37-40 (dated June 3, 2022).

CBP HQ Ruling H339732 (dated June 11, 2024) at 16, n.4 (emphasis added).

Therefore, to the extent that Accused Infringers attempt to enter articles for consumption that differ materially from the articles at issue, this ruling would not be applicable. Additionally, if either party is interested in CBP’s binding position as to the admissibility of articles other than those at issue in this inter partes proceeding, the EOE Branch remains available to receive additional ruling requests under 19 C.F.R. Part 177 when in the sound administration of the Customs laws.

Lastly, the parties were asked to clearly identify confidential information, including information subject to the administrative protective order in the underlying investigation, with [[red brackets]] in their submissions to CBP. See 19 C.F.R. §§ 177.2, 177.8. If there is information in this ruling letter not currently bracketed in red [[ ]] that either party believes constitutes confidential information, and should be redacted from the published ruling, the parties are to contact CBP within ten (10) working days of the date of this ruling letter to indicate the same. See, e.g., 19 C.F.R. § 177.8(a)(3).

The decision above is limited to the specific facts set forth herein. If articles differ in any material way from the articles at issue described above, or if future importations vary from the facts stipulated to herein, this decision shall not be binding on CBP as provided for in 19 C.F.R. §§ 177.2(b)(1), (2), (4), and 177.9(b)(1) and (2).

Sincerely,

Dax Terrill
Chief, Exclusion Order Enforcement Branch