UNITED STATES INTERNATIONAL TRADE COMMISSION Washington, DC In the Matter of ...

124 Pages·2016·5.27 MB·English

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC
In theMatter of
CERTAIN MOTORIZED SELF-BALANCING 1""=S"g*"i°"N°-337-TA__
VEHICLES
COMPLAINT UNDERSECTION 337
OF THE TARIFF ACT OF 1930.ASAMENDED
COMPLAINANT PROPOSED RESPONDENTS
Razor USA LLC Alibaba Group Holding Ltd.
12723 166th St. c/o Alibaba Group Services Limited
Cerritos, Califomia 90703 26/F Tower One, Times Square
1Matheson Street
lnventist, Inc. Causeway Bay, Hong Kong
4901 NW Camas Meadows Drive
Camas, Washington 98607 Alibaba Group Holding Ltd. (U.S.)
400 South El Camino Real, Suite 400
Shane Chen San Mateo, CA 94402
4901 NW Camas Meadows Drive United States
Camas, Washington 98607
Alibaba.com Ltd.
COUNSELFOR COMPLAINANT 699 Wang Shang Road
BinjiangDistrict
Jonathan J. Engler Hangzhou 310052 China
Asha Allam
Evan H. Langdon Alibaba Global Shipping Inc.
ADDUC1,MASTRIANI& SCHAUMBERG,L.L.P. a.k.a. Alibaba Logistics, Inc.
1133Connecticut Avenue, N.W. 1260 57th Ave.
Washington, DC 20036 Oakland, CA 94621
Telephone: [phone] ~
Facsimile: [phone] Hangzhou Chic Intelligent
Technology Co., Ltd
Bruce Wessel 2/F,No.2 Building, Liangzhu Universlty
Ellisen Turner Science and Technology Park
IRELL& MANELLALLP No.1 Jingyi Road, Liangzhu
1800Avenue of the Stars, Suite 900 Hangzhou, 311112, P.R.China
Los Angeles, CA 90067-4276
Telephone: [phone]
Facsimile: 310-203-7199
66540
C"
Contixo
1910 S.Archibald Ave. STE A
Ontario, CA 91761
ZTO Store a.k.a. ZTO Trading, Inc.
333 W Garvey Ave Ste B-128,
Monterey Park, CA91754
CyBoard LLC a.k.a. Shark Empire Inc.
675 WBroadway
Glendale, CA 91204
Genius Technologies a.k.a. Prime Capital
755East 31st Street
Hastings, MN 55033
GyroGlyder.com
1988E. Alpine Ave.
Stockton, CA 95205
HoverTech
1600Worldwide Blvd.
Hebron, KY 41048
InMotion Entertainment Group LLC
4801 Executive Park Court, Suite 100
Jacksonville, FL 32216
Soibatian Corporation dba 1OHawk and dba
Smart Wheels
1125E. Broadway #317
Glendale, CA 91205
Jetson Electric Bikes LLC
175Varick Street
New York, NY 10014
Joy Hoverboard, a.k.a. Huizhou Aoge
Enterprize Co.Ltd.
Huizhou City, with itsPliasant Faetory
Shuikou Subdistrict Office
Huizhou, 516005 China
66540
Shenzhen Kebe Technology Co., Ltd.
4th Floor, Building C,Honglianying T&S
Zone, Sili Road 286, Longhua District
Shenzhen, China
Leray Group
3/F.,I-IiChinaMansion
No.27 Gulouwai Avenue, Dongcheng District
Beijing 100120, China
Mode11’sSporting Goods, Inc.
498 7thAve, 20th Floor
New York,NY 10018
Newegg.c0m Inc.
16839East Gale Avenue
City of Industry, CA 91745
PhunkeeDuck, Inc.
250Jericho Turnpike
Floral Park, NY 11001
Powerboard a.k.a. Optimum Trading Co.
1600Worldwide Blvd.
Hebron, KY 41048
Shareconn International, Inc.
9A Unit Q 32 Dong Kang Qiao Zi Jun
Buji Town, Shenzhen, Guangdong, China
Shenzhen Chenduoxing Electronic Technology
Ltd.
4/F,Block C11, Fuyuan Industrial City,
Jiuwei, Xixiang, Bao’an Area, Shenzhen,
Guangdong, China (Mainland)
Shenzhen Jomo Technology Co., Ltd.
Floor 4th and 7th, Caiyue BIdg., Meilong Road
Bao’an Dist.
Shenzhen City, 518112, China
Shenzhen R.M.T. Technology Co., Ltd.
Rm. 711,Shangcheng Business Mansion
No. 73-1, Changjiangpu Road, He’ao,
Henggang Street, Longgang Dist.
Shenzhen, Guangdong, China (Mainland)
66540
Shenzhen Supersun Technology Co.Ltd.,
a.k.a. Aottom
Rm. 2308A, 2308B, Intemational Cultural
Building, Futian Road, Futian District,
Shenzhen, Guangdong, China (Mainland)
Skque Products
12711 Ramona Blvd. Suite 105
Irwindale, CA 91706
Spaceboard USA
604 Oakmont Lane
Norcross, Georgia, 30093
Swagway LLC
3431 William Richardson Dr., Suite F
South Bend, IN 46623
Twizzle Hoverboard
18193 Valley Blvd.
La Puente, CA 91744
Uwheels
3007 N Main St.
Santa Ana 92705
66540
TABLE OF CONTENTS
I. INTRODUCTION .................................................. ........................................... 1
II. THE ‘278PATENT......... ..........................................................................
A. Non-technical Description ..........................................................................
B. The ‘278patent Prosecution History........................................................ ..
C. Foreign Counterpart Patents andApplications ...........................................
D. Licenses under the ‘278patent ................................................................. ..
III. COMPLAINAN TS...................................................... ....................................
A. Shane Chen and Inventist, Inc. ................................................................. ..
B. Razor USA LLC ....................................................................................... ..
IV. PROPOSED RESPONDENTS .......................................... ....... ........
A. Alibaba Group Holding Ltd.,Alibaba.com Ltd.,and Alibaba
Global Shipping Inc. a.k.a. Alibaba Logistics, Inc.....................................
B. Hangzhou Chic Intelligent........................................................................ ..
C. Contixo and ZTO Store a.k.a. ZTO Trading, Inc........................................
D. CyBoard LLC a.k.a. Shark Empire Inc. LLC
E. GeniusTechnologiesa.k.a.PrimeCapital ........
F. GyroGlyder.com .........................................................................................
G. HoverTech................................................................................................. ..
H. InMotion Entertainment Group LLC..........................................................
I. Soibatian Corporation d.b.a. Smart Wheels and d.b.a. [O Hawk ...............
J. Jetson Electric Bikes LLC ........................................................................ ..
K. Joy Hoverboard, a.k.a. Huizhou Aoge Enterprize Co. Ltd.........................
L. Shenzhen Kebe Technology Co., Ltd....................................................... ..
M. Leray Group.............................................................................................. ..
N. Modell’s Sporting Goods, Inc................................................ ..
O. Neweggcom Inc.
P. PhunkeeDuck, Inc..................................................................................... ..
Q. Powerboard a.k.a. Optimum Trading Co.................................................. ..
R. Shareconn Intemational, Inc..................................................................... ..
S. Shenzhen Chenduoxing Electronic Technology Ltd. .................................
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T. Shenzhen Jomo Technology Co., Ltd.................................. ..
U. Shenzhen R.M.T. Technology Co., Ltd.................................
V. Shenzhen Supersun Technology Co. Ltd., a.k.a. Aottom ......
W. Skque Products..................................................................... ..
X. Spaceboard USA.................................................................. ..
Y. Swagway LLC ......................................... ..
Z. Twizzle Hoverboard.......
AA. Uwheels................................................................................ ..
V. PRODUCTS AT ISSUE .......................... ...................................
A. Market for Motorized Self-Balancing Vehicles.....................
B. Complainants’ Products.........................................................
1. Shane Chen and Inventist’s Hovertrax
2. Razor’s Hovertrax....................................
C. Respondents’ Products......................................................... ..
VI. UNLAWFUL ANDUNFAIR ACTS OF THE RESPONDENTS
A. Infringement ofthe ‘278patent .............................................
1. Alibaba..................................................................... ..
2. Chic Intelligent..........
3. Contixo................... ........
4. CyBoard................................................................... ..
5. Genius Technologies..................................................
6. GyroGlyder .............................................................. ..
7. HoverTech................................................................ ..
8. InMotion .................................................................. ..
9. IO Hawk................................................................... ..
10. Jetson........................................................................ ..
11. Joy Hoverboard ........................................................ ..
12. Kebe.............................................................. ..
13. Leray
14. Model|’s ................................................................... ..
15. Newegg .................................................................... ..
16. PhunkeeDuck ........................................................... ..
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17. Powerboard ............................................................................................. ..28
18. Shareconn................................................................................................ ..28
19. Chenduoxing ........................................................................................... ..28
20. Jomo........................................................................................................ ..29
21. RMT................................................................. .. 29
22. Supersun.......... 29
23. Skque...... .............................................................................. ..30
24. Spaceboard.............................................................................................. ..30
25. Swagway................................................................................................. ..30
26. Twizzle.................................................................................................... ..30
27. Uwheels................................................................................................... ..31
Violation ofthe Lanham Act, 15U.S.C. §§ 1124and 1125and
Common Law and State Unfair andDeceptive Trade Practices...........................31
1. False Advertising of Underwriters Laboratories, Inc.
Certification inViolationofLanham ...............32
a) Contixo........................................................................................ ..34
b) HoverTech................................................................................... ..35
c) M0dell’s ...................................................................................... ..35
d) Shareconn.................................................................................... ..36
e) Supersun...................................................................................... ..37
f) Skque........................................................................................... ..37
g) Swagway..................................................................................... ..38
2. False Advertising of Samsung or LG Batteries inViolation
of Lanham Act ........................................................................................ ..39
a) Alibaba........................................................................................ ..4l
b) HoverTech......................................................................... ..42
c) Joy Hoverboard........................................................................... ..43
d) Leray ........................................................................................... ..44
e) M0dell’s...................................................................................... ..45
t) Jomo............................................................................................ ..45
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g) RMT.......................................................... ..
h) Supersun.................................................... ..
i) Skque......................................................... ..
j) Spaceboard..................................................
k) Twizzle...................................................... ..
VII. RELATED LITIGATION ...........................................................
VIII SPECIFIC ACTS OF UNFAIRIMPORTATION ANDSALE
A. Alibaba................................................................................
B. Chic Intelligent.................................................................. ..
C. Contixo.............................................................................. ..
D. C;/Board............................................................................ ..
E. Genius Technologies...........................................................
F. Gyr0Glyder ................................................. ..
G. H0verTech....... ......................
H. InM0tion ........................................................................... ..
I. IO Hawk............................................................................ ..
J. Jetson...................................................................................
K. Joy Hoverboard................................................................. ..
L. Kebe.................................................................................. ..
M. Leray
N. M0dell’s............................................................................ ..
O. Newegg ............................................................................. ..
P. PhunkeeDuck .................................................................... ..
Q. Powerboard ....................................................................... ..
R. Shareconn............................................................................
S. Chenduoxing.......................................................................
T. J0mo................
U. RMT.................................................................................. ..
V. Supersun............................................................................ ..
W. Skque................................................................................. ..
X. Spaceboard........................................................................ ..
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Y. Swagway............................................................................................................. ..66
Z. Twizzle................................................................................................................ ..66
AA. Uwheels............................................................................................................... ..67
IX. CLASSIFICATION OF THE ACCUSEDPRODUCTS UNDER THE
HARMONIZED TARIFF SCHEDULEOFTHE UNITED STATES ........... ..67
X. THE DOMESTIC INDUSTRY ............. ................................................................67
A. The Technical Prong........................................................................................... ..67
l. Inventist.....................................................................................................67
2. Razor....................................................................................................... ..68
B. The Economic Prong........................................................................................... ..68
1. ' Inventist................................................................... 69
a) ASignificant Investment in Plant and Equipment......... ..................70
b) Significant Investment inLabor and Capital ................................70
c) Substantial investment inExploitation .........................................70
2. Razor....................................................................................................... ..71
a) Significant Investment inPlant and Equipment............................71
b) Significant Investment inLabor and Capital ................................7l
c) Substantial Investment inExploitation .........................................7l
d) Domestic Industry inthe Process ofBeing
Established .................................................................................. ..72
XI. INJURY TO THE DOMESTIC INDUSTRY ..............................................................73
A. Injury from Unfair Methods of Competition and Unfair Acts..............................73
B. Respondent-specific Injury Caused by the Saleof Articles That
arethe Subject of UnfairMethods of Competition...............................................77
1. Alibaba.................................................................................................... ..79
2. Contixo.................................................................................................... ..81
3. HoverTech............................................................................................... ..82
4. Joy Hoverboard....................................................................................... ..83
5. Leray....................................................................................................... ..84
6. Modell’s .... 85
7. PhunkeeDuck.................................................................................... ..86
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8. Shareconn................................................................................................ ..88
9. Jomo........................................................................................................ ..89
10. RMT........................................................................................................ ..90
ll. Supersun.............................................................................. 91
I2. Skque............... 92
13. Spaceboard......... ........................................ ..93
14. Swagway................................................................................................. ..94
15. Twizzle.................................................................................................... ..95
XII. GENERAL EXCLUSION ORDER................................................................... ......97
A. Characteristics of theU.S.Market for Accused Products Weigh in
Favor ofa GEO.....................................................................................................97
B. There are Many Sources ofAccused Products ................................................. .. 100
C. Identifying the Source ofAccused Products is Difficult .................................. .. 103
XIII. REQUEST FOR RELIEF ................ ....................................................................105
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