USITC Launches Section 337 Investigation on Atomizer Devices – 2 Vape Companies Involved

On Feb. 29, according to the official website of the U.S. International Trade Commission (ITC). The ITC has decided to conduct a Section 337 investigation on certain atomizer devices, their components, and products containing the same products. This investigation involves two vape companies, STIIIZY, and ALD Group.

Complaint filed by PAX Labs Inc. on January 30, 2024.

This investigation is based on a complaint filed by PAX Labs Inc. on January 30, 2024. And it was supplemented on Feb. 19th, Feb. 20th, and Feb. 21st, 2024.

The complaint alleges infringement of the complainant’s asserted patents. These include the import and sale of certain oil atomizing devices, components thereof, and products containing the same in US.

The complainant request the ITC to issue limited exclusion order and cease-and-desist order.

The vape companies STIIIZY and ALD are involved.

The ITC identified the following parties as respondents in this investigation:

STIIIZY IP LLC, formerly STIIIZY, LLC, a vape company in Los Angeles, California, USA;
ALD Group Limited, a vape manufacturer in Shenzhen, Guangdong Province, China;
ALD (Hong Kong) Holdings Limited, a vape company in Hong Kong, China;
STIIIZY Inc., also known as Shryne Group Inc., a vape company in Los Angeles, California, USA.

The ITC has not yet made any decision on the substantive issues of the case.

By initiating this investigation (337-TA-1392), the ITC has not yet made any decision on the substantive issues of the case. The ITC’s Chief Administrative Judge assigns the case to the ITC’s Administrative Judge (ALJ). Then the ALJ will schedules and conducts an evidentiary hearing. The administrative law judge will make a preliminary determination of whether a Section 337 violation exists. The preliminary determination may be reviewed by the Board.

View the notice of investigation(337-TA-1392) on USITC official web.

Within 45 days of the initiation of the investigation, the ITC will determine a target date for completion of the investigation. The ITC’s remedial orders in Section 337 cases are effective upon issuance. And it will become final within 60 days of issuance. Unless overridden by the U.S. Trade Representative for policy reasons within that 60 days.

The prosecutor – Pax Labs Inc., a vape manufacturer in US

Previously, Bloomberg reports that the vape manufacturer Pax Labs Inc. has filed a lawsuit against its competitors for their 4 patents have been infringed. These competitors include Stiiizy Inc. and its manufacturer ALD Group Ltd.

Pax Labs claims that Stiiizy and Hong Kong-based ALD use methods similar to Pax Labs’ patents to manufacture and sell vaping devices. The devices include batteries and cartridges.

Pax Labs has issued U.S. Patent Nos. 11,369,756, 11,369,757, 11,766,527, and 11,759,580. These patents relate to methods of preventing leakage of cartridges and related devices. Pax Labs said the two companies infringed on the above-mentioned patents.

Reynolds Tobacco filed a “337 investigation”, involving 26 Vape Companies in China and US