TCL Technology responds to 337 investigation: will not cause substantial impact

On April 21, TCL Technology stated on the investor relations interactive platform that the company noticed that the plaintiff ’s patents were mainly related to the remote control related technology of TV products, and the TV business was not the company ’s business scope. Will not have a substantial impact on TCL's technology business. At the same time, the company supports business partners and suppliers involved in investigations to negotiate and respond to relevant investigations and safeguard their rights and interests.

According to the Ministry of Commerce website, on April 16, 2020, the US Universal Electronics Company filed a 337 investigation application with the US International Trade Commission (ITC) in accordance with Section 337 of the US Customs Tariff Act 1930, accusing it of exporting to the U.S. Certain electronic devices imported and sold in the United States (including streaming media players, TVs, set-top boxes, remote controls and their components) (Electronic Devices, Including Streaming Players, Televisions, Set Top Boxes, Remote Controllers, and Components) infringe their patent rights , Request ITC to issue a limited exclusion order and prohibition order. China Hisense Group Co., Ltd., TCL Technology Group Co., Ltd. and some of its affiliates are involved in the case. The products involved in this case refer to US Customs Tariff Nos. 8525, 8855.50, and 8525.50. The US patent numbers involved include 9911325, 7589642, 7796514, 10600317, 10593196, 9716853.

Public information shows that Universal Electronics, founded in 1986 and headquartered in Arizona, is one of the world's largest remote control manufacturers. The company develops control and sensor technology solutions, and produces a range of pre-programmed and universal remote control products, audio-visual (AV) accessories, and intelligent wireless security and automation components.

This is not the first time the United States has conducted a 337 investigation of Chinese companies. According to the news of the Ministry of Commerce, as early as February 21, 2020, Corning Optical Communications LLC of the United States (Corning Optical Communications LLC) based on the "U.S. Tariff Act 1930" ”Section 337 stipulates that a 337 investigation application is filed with the United States International Trade Commission (ITC), alleging high-density fiber optic equipment and components (High-Density Fiber Optic Equipment and Components Thereof) exported to, imported from, and sold in the United States Infringe its patents, request ITC to issue a general exclusion order and prohibition order. Shanghai State Road Communication Technology Co., Ltd., Shenzhen Baorui Optical Communication Co., Ltd. and Shenzhen Bonelinks were listed as the respondent.

On March 19, 2020, the United States International Trade Commission (ITC) decided to initiate a 337 investigation on high-density fiber optic equipment and its components (Certain High-Density Fiber Optic Equipment and Components Thereof). The investigation was filed by Corning Optical Communications LLC (Corning Optical Communications LLC) in accordance with Section 337 of the U.S. Tariff Act of 1930 on February 21, alleging that the export to the U.S., import in the U.S., and sales in the U.S. The product infringes its patent and requests ITC to issue a general exclusion order and a prohibition order. Shanghai State Road Communication Technology Co., Ltd., Shenzhen Baorui Optical Communication Co., Ltd. and Shenzhen Yelei Technology Co., Ltd. were listed as the respondent.

On March 31, 2020, the US International Trade Commission (ITC) decided to initiate a 337 investigation on certain Electronic Candle Products and Components thereof. The investigation was filed by the U.S. L & L Candle and Sotera Tschetter on March 2 in accordance with Section 337 of the U.S. Tariff Act of 1930, alleging that the aforementioned products exported to, imported from, and sold in the United States violated their patents Rights, request ITC to issue general exclusion orders or limited exclusion orders and prohibition orders. Nine Chinese enterprises such as Ningbo Huamao International Trade Co., Ltd., Shenzhen Tongfang Optoelectronics Technology Co., Ltd. and 13 foreign enterprises are listed as the respondent. The products involved refer to the US Customs Tariff No. 85410000, and the US patent numbers involved include 8550660, 9366402, 9512971, 9523471, 10533718.

What is the 337 survey?

337 investigation refers to the investigation conducted by the United States International Trade Commission (USITC) in accordance with Section 337 of the US Tariff Act of 1930 (referred to as “Article 337”) and related amendments , What is prohibited is any unfair competition behavior or any unfair trade behavior in the export of products to the United States.

This kind of unfair behavior specifically means: the product enters the United States through unfair competition or unfair behavior, or the owner, importer, or agent of the product sells the product on the American market in an unfair manner, and U.S. related industries cause substantial damage or threat of damage, or hinder the establishment of U.S. related industries, or suppress or manipulate U.S. commerce and trade, or infringe on legal and valid U.S. trademarks and patent rights, or infringe on the exclusive design of integrated circuit chip layout designs Rights, or infringe other design rights protected by US law, and the existence of related industries in the United States or related industries are being established.

The targets of the 337 investigation were import products that violated US intellectual property rights and other unfair competition in import trade.