2FIRSTS | STIIIZY Redesign Fails to Escape PAX Labs Patent Import Ban as Section 337 Case Also Involves China ALD
Summary
On August 14, U.S. Customs and Border Protection determined that STIIIZY's redesigned cannabis-vape products remain covered by a limited exclusion order issued by the U.S. International Trade Commission in a patent dispute with PAX Labs. While CBP accepted some of STIIIZY's arguments regarding claim construction and non-infringement for one patent, the company did not address all relevant claims, failing to prove the products were outside the order. Previous CBP rulings had cleared certain redesigned cartridges and components in May and June. The underlying Section 337 case also involves China-based ALD Group Limited and its Hong Kong affiliate. Currently, a Federal Circuit appeal, CBP redesign proceedings, and an ITC enforcement investigation are proceeding in parallel. This case underscores that product redesign alone does not guarantee exemption from an exclusion order; importers must establish non-infringement for all relevant patent claims.
(Source:2Firsts)