On May 19, 2016, Intex Recreation Corp. of Long Beach, California and Intex Marketing Ltd. of the British Virgin Islands (collectively, “Intex”) filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.

The complaint alleges that Bestway (USA), Inc. of Phoenix, Arizona, Bestway Global Holdings, Inc. of China, Bestway (Hong Kong) International, Ltd. of Hong Kong, Bestway Inflatables & Materials Corp. of China, and Bestway (Nantong) Recreation Corp. of China (collectively, “Bestway”) unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain inflatable products that infringe one or more claims of U.S. Patent Nos. 8,562,773 (the ‘773 patent) and 9,156,203 (the ‘203 patent) (collectively, the “asserted patents”).

According to the complaint, the asserted patents generally relate to methods for producing inflatable products and related structures. In particular, the ‘773 patent relates to a method for manufacturing a tensioning structure capable of being used in inflatable products/structures, such as, for example, an inflatable airbed or an inflatable spa. The ‘203 patent relates to methods for manufacturing inflatable products/structures, such as, for example, inflatable airbeds.

In the complaint, Intex states that Bestway imports and sells products that infringe the asserted patents. The complaint specifically refers to the Bestway New Comfort Raised, Premiere Plus Elevated, Night Rest, Sleep Zone Premium, and Sleep Essence as infringing products.

Regarding domestic industry, Intex states that its Dura-Beam inflatable airbeds and PureSpa inflatable spa products are protected by the asserted patents. Intex further states that a domestic industry exists in the U.S. by virtue of Intex’s significant investments directed to its domestic industry products. Intex cites exclusively to a confidential exhibit in support of its allegations concerning the economic prong of the domestic industry requirement.

As to related litigation, Intex states that on May 13, 2016, it filed a complaint against the Proposed Respondents in the U.S. District Court for the Central District of California alleging infringement of the asserted patents.

With respect to potential remedy, Intex requests that the Commission issue a limited exclusion order and cease and desist orders directed at the Proposed Respondents and others acting on their behalf.