On December 21, Luxshare Precision issued an Announcement stated that, recently, Luxshare Precision learned from the U.S. International Trade Commission website that on December 18, 2020, the Amphenol Group filed an investigation application to the U.S International Trade Commission in accordance with Section 337 of the "U.S. Tariff Act of 1930".
The relevant situation is explained as follows:
1. The basic situation of the investigation
In this 337 Investigation, Amphenol Group filed an application with the U.S. International Trade Commission on December 18, 2020 in accordance with Section 337 of the U.S. Tariff Act of 1930, accusing the company and its subsidiaries Dongguan Luxshare Precision Co., Ltd. and Luxshare Precision. Limited, Luxshare-ICT Inc, Milpitas, CA infringed the patent right on certain electrical connectors and shells and their components and downstream products (Electrical Connectors and Cages, Components Thereof, and Products Containing The Same) exported to, imported and sold in the U.S.
2. Situation of products involved
Through the internal verification, the company currently has five U.S patents involved in this 337 investigation, involving conductive plastic technology and terminal horizontal injection molding technology, which are independently developed and designed by the company and applied to high-speed external IO connector products.
3. The company's response measures
As a high-tech enterprise, the company has always attached importance to the management and protection of intellectual property rights, abided by various Intellectual Property Laws and Regulations, and actively carried out the application, protection and operation and maintenance of intellectual property rights by establishing an IP Department and equipping relevant professionals. There are currently 2,064 valid patents in its subsidiaries. All products of the company have carried out multiple patent investigations before the implementation of new technologies to prevent infringement risks effectively.
Since the company entered the field of high-speed communication connectors, both of Luxshare Precision and Amphenol Group have their respective advantages in patent layout in this field. While maintaining active and open communication, they have their own claims on each other's patents. After learning about this incident, the company has established a special working group and hired American lawyers to respond to the 337 investigation actively. Up to now, the company has not received any formal legal documents. According to preliminary judgment, the 337 investigation will not have a substantial impact on the company's current production and operation. The company will continue to follow up on the progress of the above-mentioned matters, actively communicate and negotiate with related parties, resolutely safeguard the legal rights and interests of the company and all shareholders, and perform information disclosure obligations in time in accordance with relevant regulations.
