Unilin Prevails Before U.S. International Trade Co

Dallas, TX, July 6, 2006--On July 3rd 2006 the United States International Trade Commission (ITC) has issued a favorable decision in the case entitled “Certain Laminated Flooring Panels” brought by the Unilin group against 32 defendants. The ITC’s so-called ‘Initial Determination’ also contains a ruling in favor of the issuing of a general exclusion order. The ITC is an independent federal agency determining import injury to U.S. industries in antidumping, countervailing duty, and global and China safeguard investigations; directing actions against unfair trade practices involving patent, trademark, and copyright infringement; supporting policymakers through economic analysis and research on the global competitiveness of U.S. industries; and maintaining the U.S. Harmonized Tariff Schedule. Unilin has been a pioneer in the technology of the glueless joining of hard floor panels and Unilin enjoyed great success with its patented glue-free installation system in the market place. Early 2005 Unilin noticed that increasing volumes of infringing goods were brought in to the US and caused great commotion among its distribution partners, its retailers and its licensed partners. Unilin initiated the ITC court case on July 1st 2005 against 32 defendants based on the accusation of alleging infringement of Unilin US patents US 6,490,836, US 6,874,292 and US 6,928,779. These patents protect Unilin’s technology in the field of the glueless joining of hard flooring panels. Unilin was able to use this administrative procedure that is only available to companies that have domestic industry, operates two facilities in the US practicing the asserted patented technology. Prior to the 9 day trial, settlements were concluded with Vancouver based Quality Craft and the Chinese manufacturer Fujian Yongan. Of the remaining defendants, 20 companies defaulted and 11 presented their case before the Administrative Law Judge (ALJ). The July 3rd 2006 decision confirms the validity of 8 of the 10 asserted patent claims and declares that all of the respondents had infringed at least one of these claims. It further advises the Commission to institute a general exclusion order. Such a general exclusion order is a rare event as it specifically extends the effect of the decision beyond the respondents to any company that imports infringing goods in the US. The Initial Determination also recommended a bond of 100% of the value of the goods is advised be required during the presidential review period. The ruling also recommended issuing cease and desist orders against the defaulting parties. "We are pleased with the outcome," says Frans De Cock, CEO of the Unilin group. "Unilin has always taken a strong commitment to its US customers. Unilin has invested in an early phase in local manufacturing, has acquired a US core-board plant to become the first integrated laminate flooring manufacturer in the US, has further invested in developing its Quick-Step® brand through independent distribution and now this decision helps Unilin in protecting the legitimate interests of its distributors, retailers and of its employees from illegal competition. " As the ITC can only issue injunctive relief, Unilin will now assess how it can most efficiently recover the suffered damages. It is likely that action before the district court will be initiated to achieve this goal.