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Nantong company stands ground in 337 case

In a recent determination, the U.S. International Trade Commission (ITC) permitted U.S. company Cargill Incorporated to withdraw case, marking a victory for respondent Nantong Foreign Trade Medicines & Health Products Co., Ltd. of China.

The investigation is based on a complaint filed by Cargill, Incorporated, of Wayzata, MN, on January 28, 2009. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain non-shellfish derived glucosamine and products containing same that infringe U.S. patent 7049433 owned by Cargill. The complainant requests that the ITC issue an exclusion order and a cease and desist orders. ITC voted to institute an investigation on February 26.

In early March, Nantong Medicines submitted non-infringement defense and invalidation of patent defense. In early June, parties were entering cross-examination. Respondent Nantong Medicines brought 300 sets of materials and 12 boxes of evidences to challenge the patent of the Complainant. On June 22, Cargill withdrew the case, which would be permitted by the ITC on July 7. The complainant also withdrew its patent infringement against the respondent at the Federal District Court in New Jersey. The ITC case takes only 4 months and $500,000. The short time and low cost is really rare in those 337 investigations Chinese companies prevail these years.

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