| On April 28, 2003, United States Energizer Holding Inc. and EVEREADY Batteries Company under this group submit applicant to U.S.International Trade Committee(USITC)according to United States TariffAct 1930 section 337, accused that 25 companies producing batteries and relatively parts from China,Hong Kong, Japan and Indonesia have infringed their patent of "Zero-mercury-added alkaline batteries", required holding the section 337 investigation and required USITC issued orders excluding the products from entry into the United States. On May 28, 2003, USITC announcement that an investigation on this has been instituted, 7 companies including Nanfu Company, Double Deer Company, Baowang Company, Hutou Company, Changhong Group, Sante Company and Zhenglong are respondents. These 7 Companies have hired lawyers and submit lawsuit files to USITC at the end of June.January 2004, USITC held formal evidentiary hearing on this section 337 investigation.June 2, 2004, USITC issued order that United States Energizer Holding Inc. and EVEREADY Batteries Company's patent has been infringed. Chinese enterprises submit relatively files to response.October 2, 2004, USITC issue final determination, review the initial determination, that United States Energizer Holding Inc. patent of "Zero-mercury-added alkaline batteries" is invalid, and the respondents including Chinese 7 Companies have not infringed the patent. USITC orders are effective when issued and become final unless disapproved for policy reasons by the President of the United States within 60 days. 1,Main Content of Section 337Section 337, Tariff Act of 1930, has been amended for several times. Under section 337: the USITC determines wether there is unfair competition in the importation of products into, or their subsequent sale in, the United States. Section 337 declares the infringement of a U.S. patent, copyright, registered trademark, or mask work to be an unlawful practice in import trade. Section 337 also declares unlawful other unfair methods of competition and unfair acts in the importation and subsequent sale of products in the United States, the threat or effect of which is to destroy of substantially injure a domestic industry, prevent the establishment of such an industry, or restrain or monopolize trade and commerce in the United States.When it comes to an enterprise, if the products are determined to infringe section 337, the USITC may issue orders excluding the products from entry into the United States, and other relatively products will also been restrained. The order will affect the subsequent products and parts.2,The compact of section 337 investigation to Chinese enterprisesIn fact, this is not the first time for Chinese enterprises to been investigated. There are this kinds of cases happened every year from 1995. in these three years, United Stated enterprises accused Chinese exportation products on section 337 for seventeen times, including three cases in 2001, eight cases in 2002. There are thirteen cases on United States patent, including nine cases which have respondents from China in 2003. There are twenty three cases of investigation section 337, including 10 cases which have respondents from China in the first nine months in 2004.The fact shown that section 337 was becoming the most important weapon for United States enterprises to accuse patent infringement of Chinese exportation products.3,Countermeasure to section 337In the future, United States enterprises will frequently hold section 337 investigations to accuse Chinese enterprises with development of quality and technology of our exportation products. We can not only wait when meet the challenge. We should improve the international market competence of exporter, take effectively measure to solve the problem to protect the development of Chinese exportation enterprises.Firstly, the enterprise should enhance intellectual property right protection, take preventive measures to avoid infringing other enterprises' patents. Refer to relatively patent bef...
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