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Ink cartridge firms accused of copying
BEIJING,
March 06 — China’s exports of ink cartridges could be hit hard because
Japan-based company Epson has filed a petition against Chinese firms
over alleged violation of its patents.Epson filed a complaint last
month with the US International Trade Commission against 24 companies,
based in China, the United States and Britain.These firms manufacture,
import, or distribute ink cartridges for printers that are for sale in
the United States, according to information from the commission.Epson
wants the commission to ban the companies from importing or selling the
cartridges in the US.The commiion is scheduled to officially launch its
investigation under section 337 of the US Tariff Act this week.In
parallel with this case, the Japanese company has also filed a lawsuit
at the US District Court in Portland against the same companies seeking
damages for alleged intellectual property infringents.The claims have
caused great concern among Chinese printer makes, as half of the
defendants are major Chinese producers and their subordinate trading
firms overseas.Some insiders have warned that the investigation, which
they described as a “weapon of mass destruction,” could deal a massive
blow to the sector. Section 337 prohibits the import of articles that
infringe valid US patents, registered copyrights, or registered
trademarks. Experts believe the impact of section 337 is more severe
than any other anti-dumping action. Cai Xiaomin, a legal expert with
Guangdong General Chamber of Commerce, was quoted by China Business
News as calling for all enterprises involved to respond to the
allegations. Cai said if Epson’s allegations were proved, even products
using cartridges as components would not be allowed to be exported to
the US. In previous section 337 investigations, many Chinese firms have
given up defending themselves as they were not able to afford the high
lawyers’ fees, usually millions of US dollars for a single case.Cai
suggested that Chinese firms get together to co-ordinate their response
with the help of related industrial associations so as to reduce costs.
Investigations under section 337 usually take about 12 months to be
completed. In the past several years, Chinese firms have undergone more
section 337 investigations than ever before.Last year Chinese
enterprises, from floor makers to television makers, were accused of
infringing US enterprises’ intellectual property rights in eight
separate cases. Most completed investigations have resulted in the
allegations being proved.
Chinese DVD player manufacturers have been
involved in intellectual property right infringements, and have started
to pay patent fees to a number of well-known foreign companies,
including Toshiba, Panasonic, JVC and Matsush*ta
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