U.S. ITC Initiates 337 Investigation on STIIIZY and ALD

On February 29, according to the official website of the United States International Trade Commission (ITC), the ITC has decided to conduct a Section 337 investigation on certain atomization devices, their components, and products containing the same products. This investigation involves companies such as STIIIZY and ALD.

This investigation is based on a complaint filed by PAX Labs Inc. on January 30, 2024, and supplemented on February 19, 20, and 21, 2024. The complaint alleges infringement of patents claimed by the complainant, involving the import and sale of certain oil vaporization devices, their components, and products containing the same in the United States. The complainant has requested the ITC to issue a limited exclusion order and a cease and desist order.

ITC has identified the following respondents in this investigation:

• STIIIZY IP LLC, formerly known as STIIIZY, LLC, located in Los Angeles, California, USA; 
• ALD Group Limited, based in Guangdong, China; 
• ALD (Hong Kong) Holdings Limited, located in Hong Kong, China; 
• STIIIZY Inc., also known as Shryne Group Inc., situated in Los Angeles, California, USA. 

The International Trade Commission (ITC) has not made any decisions yet on the substantive issues of the case initiated through investigation (337-TA-1392). The Chief Administrative Law Judge of the ITC will assign this case to an Administrative Law Judge (ALJ), who will schedule and conduct an evidentiary hearing. The ALJ will make an initial determination on whether there is a violation of Section 337, which can be reviewed by the Commission.

Within 45 days of the investigation being initiated, the ITC will determine the target date for completing the investigation. Remedial orders in ITC Section 337 cases take effect upon publication and become final within 60 days of publication, unless vetoed by the United States Trade Representative for policy reasons within that 60-day period.

Previously, according to a report by Bloomberg on January 30th, e-cigarette manufacturer Pax Labs Inc. has filed a lawsuit against its competitor Stiiizy Inc. and its manufacturer ALD Group Ltd (ALD) for infringing on four of its patents.

Pax Labs alleges that Stiiizy and ALD, headquartered in Hong Kong, China, are manufacturing and selling vaporization devices, including batteries and pods, in a manner similar to Pax Labs' patented technology.

Pax Labs has obtained U.S. patents 11,369,756, 11,369,757, 11,766,527, and 11,759,580, which are related to methods for leak-proof pods and related devices. Pax Labs has alleged that these two companies have infringed upon the aforementioned patents.