Chinanews, Hangzhou, Jan. 18 – In May, 2006, US lighter maker Zippo presented a document to U.S. International Trade Commission (ITC), claiming that seven lighter makers, including four Chinese ones, had violated Section 337 of the Tariff Act of 1930 and infringed the intellectual property rights of the company. ITC later instituted the "337 investigation" regarding the case. Through the whole investigation process, one Chinese lighter maker responded to the case and in the end, it became the only one Chinese lighter maker that was exempted from the restriction by US general exclusion order.
In its document present to ITC, Zippo claimed that when registering the trademark, the outer shape of the Zippo lighter was described as a lighter "that is slightly round in edge and corner, with its top designed in the shape of a curve." All lighters that bear a similar outer shape as such description will infringe the intellectual property rights of Zippo company. The description covers merely all types of middle- and high-end lighters made in China.
However, Cheng Jianhua, general manager of the Wenzhou Hengxing Smoking Sets Production Company, said that Zippo’s trademark was registered unfairly.
“Before Zippo made the registration, many lighters had already taken on a similar look, because if the edge of a lighter is made with a pointed shape, customers would find it diffult to hold the lighter in hand.”
Bearing this in mind, Cheng finally decided to respond to the case. At that time, he had to make up his mind quickly since according to related requirement, he was allowed to make response to the case within 20 days.
“It would cost us at least two million US dollars for the litis contestatio. However, if you don’t response, you cannot enter into the US market and your business will not grow in future. In order to carry on our business, we’d rather use all of our money to win the case,” Cheng said.
To his surprise, his company was the only one in China that responded to the case. All the other three companies chose to keep silent. Cheng finally found a group of lawyers from home and abroad for the case and the outcome was surprising, too: Zippo finally withdrew the claim against his company. ITC finally ruled that Hengxing company was the only Chinese company that could export lighters to US market. Once the US general exclusion order is issued, all other Chinese lighter makers will not be able to enter into US market for ever.
