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Paper Towel Dispensers: ITC Issues GEO & C/D Orders, Sets 100% Bond

The International Trade Commission has issued a general exclusion order in a patent-based section 337 investigation with respect to asserted claims of certain patents of certain electronic paper towel dispensing devices and components (337-TA-718). The ITC is also issuing cease and desist orders against two companies, Stefco Industries, Inc. and Cellynne Corporation of Haines City, FL with respect to the same claims. The ITC further determined that a bond of 100% of the entered value of the covered products is required to permit temporary importation during the 60-day Presidential review period under 19 USC 1337(j). The investigation, general exclusion order, and cease and desist orders were requested by Georgia-Pacific Consumer Products LP of Atlanta, GA.

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The ITC states that these actions terminate the investigation.

(See notice for details of the order and discussion of the respondents1. See ITT’s Online Archives 11082601 and 10051844 for summaries of the ITC seeking comments on the investigation and its initiation of it.)

1The complainant named as respondents Kruger Products LP of Mississauga, Canada; KTG USA LP of Memphis, TN (KTG USA); Stefco Industries, Inc. of Haines City, FL (Stefco); Cellynne Corporation of Haines City, FL (Cellynne); Draco Hygienic Products Inc. of Ontario, CA; NetPak Electronic Plastic and Cosmetic, Inc., d/b/a/ Open for Business of Chicago, IL (NetPak Chicago); NetPak Electronik Plastik ve Kozmetik Sanayi, Ve Ticaret Ltd of Izmir, Turkey (NetPak Turkey); Paradigm Marketing Consortium, Inc. of Syosset, NY; United Sourcing Network Corp. of Syosset, NY; New Choice (H.K.) Ltd. of Shatin, Hong Kong; and Vida International Inc. of Taipei, Taiwan.

On December 30, 2010, the ALJ issued an ID finding Stefco, Cellynne, and NetPak Turkey in default. In January 2011, the other respondents to the investigation were terminated by consent order.

(According to the ITC, the primary remedy available in Section 337 investigations is an exclusion order that directs Customs to stop infringing imports from entering the U.S. The exclusion from entry is limited to persons determined by ITC to be in violation, unless ITC determines that a general exclusion order is necessary to prevent circumvention, there is a pattern of violation, etc. In addition, the ITC may issue cease and desist orders against named importers and other persons engaged in unfair acts that violate Section 337.)

ITC contact - James Worth (202) 205 -3065

(FR Pub 12/06/11, Investigation No. 337-TA-718)