Husky sues Chinese firm in IP, trade dispute that began at NPE

A patent infringement dispute that began on the show floor at NPE2024 has led Husky Injection Molding Systems Inc. to file a federal trade complaint and a separate lawsuit against a Chinese competitor.

Husky maintains Ningbo AO Sheng Mold Co. Ltd. "flagrantly flaunted" Husky patents and trademarks at a booth the NPE2024 show in Orlando, Fla., in May 2024, as part of an effort by the Chinese firm to use NPE as a major entry point into the American market.

Since that encounter at NPE2024 — the largest North American plastics trade fair — Husky has pressed its case with legal filings at the U.S. International Trade Commission, which announced Dec. 12 that it was opening a formal investigation, and in federal court in Marshall, Texas.

In both the court and USITC filings, Husky contends AO Sheng is "stealing and copying" its designs and trademarks for key components in the bottle preform market. It added AO Sheng was using its booth at NPE to confuse customers into thinking it had a business relationship with Husky.

The Chinese firm, however, disputed that in its response in court, saying that the products it displayed at NPE, which drew 51,000 attendees from May 6-10, did not violate Husky patents.

AO Sheng, also known as Aosimi, told the federal court that it removed references to Bolton, Ontario-based Husky from its NPE materials after its larger competitor objected.

Husky, however, told both the federal court and the USITC, a quasi-independent agency that reviews trade disputes, that AO Sheng was violating its intellectual property and putting at risk Husky's long-term investments in its 350-employee Vermont factory.

"Aosimi … flagrantly flaunted its theft of Husky's intellectual property," Husky told the USITC. "Aosimi entered the United States, attended the 2024 NPE show and blatantly displayed Husky's brand names next to components and products that infringe Husky's asserted patents."

Husky said it delivered a cease-and-desist letter alleging seven patent violations to Aosimi at its NPE booth on May 8, mid-way through the five-day show, pointing to infringing products on display and Aosimi's prominent references to Husky in booth signage.

It followed that up a day later by hand-delivering to AO Sheng booth staff a lawsuit it filed in federal court in the Eastern District of Texas.

In a court filing, Husky said Aosimi used phrases like "Brand: Husky" and made references to specific Husky molding machines in its booth signs, as well as using language that Husky said was designed to "cause confusion or deceive customers" that the two companies had a business connection.

In particular, Husky told the federal court that AO Sheng's NPE materials claimed that the Chinese firm "focuses on the research and production of high-speed, high cavity Husky preforms and Sacmi capping molds."

Husky's filings also alleged patent violations for a cavity insert and four other mold products or apparatus, including technologies for making more robust bottle caps and that make it significantly easier for injection molding machines to self-clean and operate much faster.

"This self-cleaning technology is the most important differentiator of Husky's products from competitor's products," the company told the USITC.

Husky argued to the government that the dispute between the two companies runs much deeper than a few components displayed at a trade show booth, or tweaking marketing language.

"The economic harm and possible loss due to Aosimi's piracy is not totally quantifiable, but it unquestionably causes harm to Husky and will or has caused harmful economic ripples across U.S. manufacturing, affecting countless U.S. jobs now and in the future," the company said.

Husky did not respond to a request for additional comment.

U.S.-based lawyers for AO Sheng said they could not comment beyond what the company filed in the government proceedings, where the firm made generally brief arguments that it didn't violate Husky patents and promptly changed its marketing materials after Husky complained.

"Defendant never intended to cause confusion because defendant removed all Husky's [trade]marks from all relevant exhibits on the same day after receiving a notice from plaintiff ... out of precaution and respect," AO Sheng said. "Defendant specifically denies to ever having caused confusion or mistake."

Aosimi also argued to the court that it did not try to sell any of the components at issue in Husky's complaint, claiming they were only at NPE for exhibition purposes: "No offers for sale and/or service were made at the NPE2024 show."

And it disputed that any similarities in design infringed on Husky patents, saying that it's to be expected when designing components for similar machinery.

"It is inevitable that molds that are adaptive to the same injection molding machine will contain similarities," Aosimi said.

The USITC said it plans an evidentiary hearing before an administrative law judge before ruling on Husky's complaint. The federal court case continues.

Husky is asking the court for monetary damages and wants the USITC to bar the Yuyao, China-based AO Sheng's products from the U.S. market.