ITC:NINESTAR INFRINGED 11 EPSON PATENTS

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Date: Thursday October 25, 2007 10:58:00 am
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    U.S. International Trade Commission Issues a Final Determination Finding All Accused Cartridges Infringe Epson’s Patents
    LONG
    BEACH, United States, October, 2007 – On October, 2007 , the U.S.
    International Trade Commission (“ITC”) issued a Final Determination
    upholding, with slight modifications, the Initial Determination issued
    by the ITC Administrative Law Judge on March 30, 2007 that found all 11
    patents belonging to Seiko Epson Corporation (“Epson”) to be valid and
    all ink cartridges at issue to infringe one or more of the patents. The
    modifications to the Initial Determination do not significantly change
    the outcome, and under the Final Determination, all of Epson’s 11
    patents were found valid and all accused cartridges still infringe one
    or more of the patents.

    The ITC also issued a General Exclusion
    Order that prohibits all importation of infringing cartridges into the
    U.S., and also issued a Limited Exclusion Order that prohibits all
    importation of infringing cartridges by defaulting respondents. In
    addition, the ITC also issued Cease and Desist Orders that prohibit the
    sale and distribution of infringing cartridges in the U.S. by certain
    domestic respondents.The General Exclusion Order prohibits the
    importation of all infringing ink cartridges not only by the companies
    who were respondents in the ITC investigation, but also by any
    importers of infringing ink cartridges.

    The Final Determination
    is subject to Presidential Review for 60 days, to consider whether
    there are any policy reasons to disapprove the Final Determination.
    During the Presidential Review period, importers may continue to import
    infringing cartridges into the United States only if they post a bond
    of $13.60 per cartridge. However, if during the Presidential Review
    Period, the President does not disapprove the Final Determination, then
    all importers must cease importing infringing products entirely.

    The
    Final Determination arises from a complaint that Epson and its U.S.
    subsidiaries filed on February 17, 2006 that accused 24 U.S., Korean,
    German, and Chinese companies of importing and selling infringing ink
    cartridges in the U.S. Epson and its U.S. subsidiaries also filed
    parallel actions in the U.S. District Court for Oregon for damages and
    injunctive relief. Prior to the ITC trial, Epson reached resolution
    with 18 respondents, including settlements where the respondents agreed
    to cease sales of infringing products.

    “Trust-based management”
    is at the core of Epson’s corporate management, and we run our company
    with care not to violate any laws or corporate ethics, and with full
    respect for the rights of others. At the same time, we expect others to
    show the appropriate respect for our rights as well. From the
    standpoint of protecting intellectual property rights, we will use
    legal measures to address those who use Epson’s patented technology,
    trademarks, and other intellectual property without permission.

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