ITC Reviews Crafting Machines Section 337 Violation, Requests Submissions on Remedy and Public Interest

Content

ACTION:

Notice.

SUMMARY:

Notice is hereby given that the U.S. International Trade Commission has determined to review in part the presiding administrative
law judge's (“ALJ”) final initial determination (“ID”) finding a violation of section 337 in the above-captioned investigation.
The Commission requests written submissions from the parties, interested government agencies, and interested persons on the
issues of remedy, the public interest, and bonding under the schedule set forth below.

FOR FURTHER INFORMATION CONTACT:

Cathy Chen, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436,
telephone (202) 205-2392. Copies of non-confidential documents filed in connection with this investigation may be viewed on
the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email EDIS3Help@usitc.gov. General information concerning the Commission may also be obtained by accessing its internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal
on (202) 205-1810.

SUPPLEMENTARY INFORMATION:

The Commission instituted this investigation on December 11, 2024, based on a complaint filed on behalf of Cricut, Inc. (“Cricut”)
of South Jordan, Utah. 89 FR 99,905-06 (Dec. 11, 2024). The complaint, as supplemented, alleges violations of section 337
of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, in the importation into the United States, the sale for importation,
and the sale within the United States after importation of certain crafting machines and components thereof by reason of infringement
of certain claims of U.S. Patent No. 11,208,758 (“the '758 patent”); U.S. Patent No. 11,905,646 (“the '646 patent”); U.S.
Patent No. D893,563 (“the D563 patent”); U.S. Patent No. D910,724 (“the D724 patent”); U.S. Patent No. D926,237 (“the D237
patent”); and U.S. Patent No. D1,029,090 (“the D090 patent”). Id. The complaint further alleges that an industry in the United States exists or is in the process of being established as required
by the applicable Federal statute. The Commission's notice of investigation names eight (8) respondents: Bozhou Wanxingyu
Technology Co. Ltd. of Bozhou, China; Bozhou Zhongdaxiang Technology Co., Ltd. of Bozhou, China; and Shanghai Sishun E-Commerce
Co., Ltd. of Shanghai, China (collectively, the “Vevor Respondents”); LiPing Zhan (“Konduone”) of Jingzhou, China; Hunan Sijiu
Technology, Co. Ltd. of Changsha, China; Hunan Sijiu Electronic Technology Co., Ltd. (“HSET”) of Changsha, China; Guangdong
Rongtu Technology Co., Ltd. of Foshan City, China; and SainStore Technology Co., Ltd. (“SainStore”) of Dongguan City, China. Id. at 99,905-06. The Office of Unfair Import Investigations (“OUII”) is also named as a party. Id. at 99,906.

On January 31, 2025, the Commission partially terminated the investigation as to SainStore based on a consent order stipulation
and issued a consent order against SainStore. Order No. 5 (Jan. 8, 2025), unreviewed by Comm'n Notice (Jan. 31, 2025).

On April 3, 2025, Respondent HSET was terminated from this investigation, HK Sijiu International Share Co., Ltd. of Hong Kong,
China, was added to this investigation as a new respondent, and U.S. Design Patent No. D877,214 (“the D214 patent”) was also
added to this investigation. Order No. 10 (Mar. 6, 2025), unreviewed by Comm'n Notice (Apr. 3, 2025), 90 FR 15,161-62 (Apr. 8, 2025). The target date was extended to May 13, 2026.

On April 4, 2025, claims 19 and 20 of the 758 patent were terminated from the investigation based on withdrawal of the complaint.
Order No. 11 (Mar. 17, 2025), unreviewed by Comm'n Notice (Apr. 4, 2025).

The Vevor Respondents and Konduone were found in default pursuant to 19 CFR 210.16. Order No. 17 (May 7, 2025), unreviewed by Comm'n Notice (May 28, 2025). The only participating respondents

remaining in the investigation are Respondents HK Sijiu International Share Co., Ltd., Hunan Sijiu Technology, Co. Ltd., and
Guangdong Rongtu Technology Co., Ltd. (collectively, “HTVRONT”).

On May 27, 2025, the Commission partially terminated the investigation as to the D090 patent based on a consent order stipulation
and issued a consent order against HTVRONT as to that patent. Order No. 16 (Apr. 30, 2025), unreviewed by Comm'n Notice (May 27, 2025).

On August 5, 2025, the Commission determined not to review an ID (Order No. 21), extending the target date to August 13, 2026,
at the request of the parties. Order No. 21 (July 8, 2025), unreviewed by Comm'n Notice (Aug. 5, 2025).

On August 27, 2025, the Chief ALJ shortened the target date to March 11, 2026, after the parties agreed that the remainder
of the investigation could be adjudicated through motion practice. Order No. 22 (Aug. 27, 2025).

On September 4, 2025, Cricut filed a motion for summary determination that Konduone has violated section 337 as to the D563
patent and claims 8-12 of the '646 patent, and the Vevor Respondents have violated section 337 as to the D090 patent, and
for a recommended determination on remedy. That same day, HTVRONT moved for summary determination of non-infringement of its
redesigned products and to partially terminate this investigation as to the products HTVRONT was discontinuing—the Square
Heat Press, Reduced Square Heat Press, Mini Heat Press, Mini3 Heat Press, and Hat Heat Press (the “Old HTVRONT Products”)—based
upon a consent order stipulation and proposed consent order. HTVRONT's motion to partially terminate the investigation as
to the Old HTVRONT Products was granted on January 20, 2026 and the Commission issued a second consent order against HTVRONT.
Order No. 27 (Jan. 20, 2026), unreviewed by Comm'n Notice (February 17, 2026).

On December 4, 2025, the Commission determined not to review Order No. 24, extending the target date to May 21, 2026, due
to a lapse in government appropriations from October 1, 2025 through November 12, 2025. Order No. 24 (Nov. 17, 2025), unreviewed by Comm'n Notice (Dec. 4, 2025).

On January 21, 2026, the Chief ALJ issued a combined final ID and recommended determination (“RD”), finding a violation of
section 337 by Konduone as to the D563 patent and claims 8-12 of the '646 patent and by the Vevor Respondents as to the D090
patent. The final ID also found HTVRONT's redesigned products were ripe for adjudication and the redesigned products are entitled
to summary determination of non-infringement. The final ID further found no violation of section 337 as to the '758 or D214
patents because Cricut did not present any evidence or argument as to those patents in its summary determination motion. Furthermore,
the final ID determined Cricut's contentions that the Old HTVRONT Products infringe the D724 and D237 patents were moot in
view of the consent order stipulation. In the event the Commission agrees that a violation of section 337 has occurred, the
RD recommended that the Commission issue a general exclusion order (“GEO”) with respect to the D563 patent, a limited exclusion
order (“LEO”) against Konduone with respect to the '646 patent, an LEO against the Vevor Respondents with respect to the D090
patent, and cease and desist orders (“CDO”) against Konduone and the Vevor Respondents. The RD also recommended that the Commission
set the bond during the period of Presidential review at one-hundred percent (100%) of the entered value of the imported articles.

No petitions for review were filed, which means each party has abandoned all issues decided adversely to that party. See 19 CFR 210.43(b)(4).

Having reviewed the record of the investigation, including the final ID, the parties' submissions to the ALJ, and the record
evidence, the Commission has determined to review the final ID's findings on the economic prong of the domestic industry requirement.
The Commission has determined not to review the remaining findings, conclusions, and supporting analysis in the final ID.

In connection with the final disposition of this investigation, the statute authorizes issuance of, inter alia, (1) an exclusion order that could result in the exclusion of the subject articles from entry into the United States; and/or
(2) cease and desist orders that could result in the respondents being required to cease and desist from engaging in unfair
acts in the importation and sale of such articles. Accordingly, the Commission is interested in receiving written submissions
that address the form of remedy, if any, that should be ordered. If a party seeks exclusion of an article from entry into
the United States for purposes other than entry for consumption, the party should so indicate and provide information establishing
that activities involving other types of entry either are adversely affecting it or likely to do so. For background, see Certain Devices for Connecting Computers via Telephone Lines, Inv. No. 337-TA-360, USITC Pub. No. 2843, Comm'n Op. at 7-10 (Dec. 1994).

The statute requires the Commission to consider the effects of that remedy upon the public interest. The public interest factors
the Commission will consider include the effect that an exclusion order and cease and desist orders would have on: (1) the
public health and welfare, (2) competitive conditions in the U.S. economy, (3) U.S. production of articles that are like or
directly competitive with those that are subject to investigation, and (4) U.S. consumers. The Commission is therefore interested
in receiving written submissions that address the aforementioned public interest factors in the context of this investigation.

If the Commission orders some form of remedy, the U.S. Trade Representative, as delegated by the President, has 60 days to
approve, disapprove, or take no action on the Commission's determination. See Presidential Memorandum of July 21, 2005, 70 FR 43251 (July 26, 2005). During this period, the subject articles would be entitled
to enter the United States under bond, in an amount determined by the Commission and prescribed by the Secretary of the Treasury.
The Commission is therefore interested in receiving submissions concerning the amount of the bond that should be imposed if
a remedy is ordered.

Written Submissions: The parties to the investigation are requested to file written submissions on the issues identified in this notice. Parties
to the investigation, interested government agencies, and any other interested parties are encouraged to file written submissions
on the issues of remedy, the public interest, and bonding. Such submissions should address the recommended determination by
the ALJ on remedy and bonding.

In its initial submission, Complainant is also requested to identify the remedy sought and Complainant and OUII are requested
to submit proposed remedial orders for the Commission's consideration. Complainant is further requested to state the date
that the '646 patent, the D563 patent, and the D090 patent expire, to provide the HTSUS subheadings under which the accused
products are imported, and to supply the identification information for all known importers of the products at issue in this
investigation. The initial written submissions and proposed remedial orders must be filed no later

than close of business on April 28, 2026. Reply submissions must be filed no later than the close of business on May 5, 2026.
No further submissions on these issues will be permitted unless otherwise ordered by the Commission.

Persons filing written submissions must file the original document electronically on or before the deadlines stated above
pursuant to 19 CFR 210.4(f). Submissions should refer to the investigation number (Inv. No. 337-TA-1426) in a prominent place
on the cover page and/or the first page. (See Handbook for Electronic Filing Procedures, https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding filing should contact the Secretary, (202) 205-2000.

Any person desiring to submit a document to the Commission in confidence must request confidential treatment by marking each
document with a header indicating that the document contains confidential information. This marking will be deemed to satisfy
the request procedure set forth in Rules 201.6(b) and 210.5(e)(2) (19 CFR 201.6(b) & 210.5(e)(2)). Documents for which confidential
treatment by the Commission is properly sought will be treated accordingly. Any non-party wishing to submit comments containing
confidential information must serve those comments on the parties to the investigation pursuant to the applicable Administrative
Protective Order. A redacted non-confidential version of the document must also be filed with the Commission and served on
any parties to the investigation within two business days of any confidential filing. All information, including confidential
business information and documents for which confidential treatment is properly sought, submitted to the Commission for purposes
of this investigation may be disclosed to and used: (i) by the Commission, its employees and Offices, and contract personnel
(a) for developing or maintaining the records of this or a related proceeding, or (b) in internal investigations, audits,
reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C. Appendix
3; or (ii) by U.S. government employees and contract personnel, solely for cybersecurity purposes. All contract personnel
will sign appropriate nondisclosure agreements. All nonconfidential written submissions will be available for public inspection
on EDIS.

The Commission vote for this determination took place on April 14, 2026.

The authority for the Commission's determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C.
1337), and in Part 210 of the Commission's Rules of Practice and Procedure (19 CFR part 210).

By order of the Commission.

Issued: April 14, 2026. Lisa Barton, Secretary to the Commission. [FR Doc. 2026-07511 Filed 4-16-26; 8:45 am] BILLING CODE 7020-02-P

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