Valbruna Applauds Now Final Exclusion from the US Market of Viraj Stainless Steel Products
On July 26, 2016, the orders issued by the U.S. International Trade Commission (“ITC”) against India’s Viraj Profiles in a Section 337 case entered into full effect. Viraj must now stop importing, marketing, and selling its stainless steel products in the United States for a period of 16.7 years. The orders apply to all Viraj stainless steel, regardless of product form, including but not limited semi-finished steel, wire rod, bars, angles, wire, flanges and fasteners.
The case stems from allegations made by Valbruna Stainless of Fort Wayne, Indiana, that Viraj paid an ex-employee hundreds of thousands of dollars to steal Valbruna’s manufacturing trade secrets and customer lists from its Vicenza, Italy, location. The ex-employee and a Viraj executive were criminally charged and convicted in an Italian court.
The orders also apply to Viraj-made steel sold by other parties. Addressing the issue of the German stainless steel company, Bebitz, which Viraj’s financial statements identify as a related company, the Commission stated that the “order does not cover Bebitz's downstream products. However, to the extent that Bebitz chooses to import Viraj Profiles' covered stainless steel products into the United States, it is subject to the limited exclusion order, as is any non-respondent.” In addition, the cease and desist order forbids Viraj or any affiliates or agents from “aid[ing] or abet[ting] other entities in the importation, sale for importation, sale after importation, transfer, or distribution of the covered products.”
Viraj may appeal the ITC’s orders to the United States Court of Appeal for the Federal Circuit, but the ITC’s orders will remain in effect throughout any appeal proceedings.
