Complaint of Paice Llc and Abell Foundation, Inc
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UNITED STATES INTERNATIONAL TRADE COMMISSION WASHINGTON, D.C. 20436 In the Matter of Investigation CERTAIN HYBRID ELECTRIC VEHICLES No. 337-TA AND COMPONENTS THEREOF COMPLAINT OF PAICE LLC AND ABELL FOUNDATION, INC. UNDER SECTION 337 OF THE TARIFF ACT OF 1930. AS AMENDED COMPLAINANTS: PROPOSED RESPONDENTS: Paice LLC Volkswagen AG 11I South Calvert Street, Suite 2310 Brieffach I849 Baltimore, MD 21202 D-38436 Wolfsburg Tel: (410) 539-1007 Germany Tel: +49-5361-9-0 Abel] Foundation, Inc. I I I South Calvert Street, Suite 2300 Volkswagen Group of America, Inc. Baltimore, MD 21202 ' 2200 Ferdinand Porsche Dr. Tel: (410)547-1300 Herndon, VA 20171 Tel: 703-364-7000 COUNSEL FOR COMPLAINANTS: Dr. lng. H.C. F. Porsche AG Ruffin B. Cordell Porscheplatz 1 Linda Liu Kordziel D-70435 Stuttgart Ahmed J. Davis Germany Thomas S. Fusco Tel: +49-711911-0 Brian J. Livedalen FISH & RICHARDSON P.C. Porsche Cars North America, Inc. 1425 K Street NW, Suite 1100 980 Hammond Drive, Suite 1000 Washington, DC 20005 Atlanta, GA 30328 Tel: (202) 783-5070 Tel: (610) 252-5747 Fax: (202)783-2331 Audi AG Ettinger Stral3e D-85045, Ingolstadt Germany V ' Tel: +49-084189-0 Audi of America, LLC 2200 Ferdinand Porsche Dr. Herndon, VA 20171 Tel: 703-364-7000 TABLE OF CONTENTS Page INTRODUCTION ............................................................................................................ .. A. OVERVIEW ......................................................................................................... .. B. PAICE AND ABELL BACKGROUND .............................................................. .. PAICE HYBRID VS. VW DIESEL ..................................................................... .. VW-PAICE COLLABORATION ........................................................................ .. l. Paice Proves its Patented Hybrid Technology to VW (April 200l—March 2002) ......................................................................................................... .. 9 2. VW Works with Paice on the T5 Prototype (April 2002—December2002) ...................................................................................... l2 3. Paice Prepares for the “Vehicle Phase” (December 2002~April 2003).... I6 4. The T5 Hyperdrive Feasibility Study (April 2003-December 2003) ....... I9 a. Performance and Cost ................................................................. .. 19 b. Marketing .................................................................................... .. 20 0. Patent Review .... ............ .... ........ .. 21 d. Completion of Feasibility Study and Licensing Discussions ....... 22 5. VW Ends its Collaboration with Paice (Early 2004) .............................. .. 23 E. PAICE’S LICENSING EFFORTS ..................................................................... .. 24 COMPLAINANTS .............................................................................. .. Z7 PROPOSED RESPONDENTS ......;................................................................................ .. 28 THE TECHNOLOGY AND PRODUCTS AT ISSUE .................................................. .. 30 THE ASSERTED PATENTS ......................................................................................... .. 31 A. THE '347 PATENT ............................. ............................................................. .. 31 l. Identification ofthc Patent and Ownership by Paice and Abell 31 2. Non-Technical Description of the Patented Invention ............................ .. 32 3. Foreign Counterparts to the ’347 Patent ................................................. .. 33 4. Licenses to the ’347 Patent ..................................................................... .. 34 B. THE ’634 PATENT ............................................................................................ .. 34 l. Identification of the Patent and Ownership by Paice and Abell ............... 34 2. Non-Technical Description ofthe Patented Invention ............................ .. 35 . Foreign Counterparts to the ’634 Patent ................................................. .. 35 Licenses to the ’634 Patent ..................................................................... .. 36 . i. 57.0 ikb-I ~O\1uaw- TABLE OF CONTENTS Icont’d)_ Page C. THE ’O97PATENT ............................................................................................ .. 36 I. Identification of the Patent and Ownership by Paice and Abell ............... 36 2. Non-Technical Description ofthe Patented Invention............................ .. 37 3. Foreign Counterparts to the ’097 Patent ................................................. .. 38 4. Licenses to the ’097 Patent .......... 39 VI. UNFAIR ACTS OF PROPOSED RESPONDENTS ...................................................... .. 39 VII. SPECIFIC INSTANCES OF UNFAIR IMPORTATION AND SALE ......................... .. 43 V CLASSIFICATION UNDER THE HARMONIZED TARIFF SCHEDULE .................. 44 IX. LICENSEES ..................................................... ..................................................... .. 44 X DOMESTIC INDUSTRY....... ........................................................................................ .. 44 A. ECONOMIC PRONG......................................................................................... .. 45 1. Substantial Domestic Investments Related to Domestic Industry Vehicles ................................................................................................................. .. 45 2. Complainants’ Substantial Domestic Industry Investment ..................... .. 47 B. TECHNICAL PRONG ....................................................................................... .. 48 XI. RELATED LITIGATION ............. 48 XII. REQUESTED RELIEF................................................................................................... .. 50 ii LIST OF EXHIBITS U.S. Patent No. 7,104,347 U.S. Patent No. 7,237,634 U.S. Patent No, 8,214,097 ' Certified Copy of the Assignment Record at Real-Frame No. 011932/0488 for U.S Patent N0. 6,554,088 Certified Copy of the Assignment Record at Real-Frame No. 014028/0876 for U.S Patent N0. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No. 014532/0782 for U.S Patent N0. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No. 014539/0212 for U.S Patent N0. 7,104,347 Certified Copy of the Assignment Record at Real~FrameNo 014546/0344 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 014546/0351 for U.S Patent N0. 7,104,347 Certified Copy ofthe Assignment Record at Real-Frame No. 14556/0001 for U.S. Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 014567/0608 for U.S Patent No. 7,104,347 Certified Copy ofthe Assignment Record at Real-Frame No 014567/0842 for U.S Patent No. 7,104,347 Certified Copy ofthe Assignment Record at Real-Frame No. 014567/0940 for U.S Patent No. 7,104,347 Certified Copy ofthe Assignment Record at Real-Frame N0.0l4588/0319 for U.S Patent No. 7,104,347 1 Certified Copy of the Assignment Record at Real-Frame No.018654/0087 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 018664/0070 for U.S Patent No. 7,237,634 iii Certified Copy of the Assignment Record at Real-Frame No. 021901/0632 for U.S Patent No. 7,104,347 Cenified Copy of the Assignment Record at Real-Frame No. 026470/0359 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 026484/0831 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 026484/0859 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No.026484/0881 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 026484/0,940 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 026503/0093 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No 027704/0574 for U.S Patent No. 7,104,347 " Certified Copy of the Assignment Record at Real-Frame No. 029844/0330 for U.S Patent No. 7,104,347 Certified Copy of the Assignment Record at Real-Frame No. 30744/00158 for U.S Patent No. 7,104,347 ' Page from VW Website Paice Press Release VW Jetta Hybrid ~ ’634 Patent Claim Chart VW Jetta Hybrid ~ ’097 Patent Claim Chart VW Jetta Hybrid —’347 Patent Claim Chart Audi Q5 Hybrid —’634 Patent Claim‘ Chart Audi Q5 Hybrid —’097 Patent Claim Chart Audi Q5 Hybrid ~ ’347 Patent Claim Chart Audi A3 e-tron Hybrid —’634 Patent Claim Chart iv Audi A3 e-tron Hybrid —’097 Patent Claim Chart Audi A3 e-tron Hybrid —’3747Patent Claim Chart Porsche Cayenne S E-Hybrid and Panamera S E-Hybrid - 634 Patent Claim Chart Porsche Cayenne S E-Hybrid and Panamera S E-Hybrid - 097 Patent Claim Chart Porsche Cayenne S E-Hybrid and Panamera S E-Hybrid - 347 Patent Claim Chart Page from VW Website Page from VW Website Page from VW Website Page from VW Dealership Website Vehicle History Report Page from Audi Dealership Website Vehicle History Report Page from Porsche Dealership Website Vehicle History Report y Hyundai Warrantyf ' Kia Warranty _ _ Page from Hyundai America Website Hyundai 2014 Annual Report Hyundai Worldwide Sales List of Hybrid Sales Kia 2014 Annual Report Kia 2014 Sales by Model Page from Hyundai Technical Center Website Confidential Declaration Hyundai —’097 Chart Patent Claim Chart V Hyundai —’634 Chart Patent Claim Chart Hyundai —’347 Chart Patent Claim Chart February 19, 2016 Letter from Paice LLC to Volkswagen AG March 9, 2016 Letter from