ITC finds 337 violation on storage containers; LEO vs Klein
USITC finds section 337 violation on two patents covering storage containers and toolboxes, issues LEO and CDO against Klein Tools, and keeps the '167 patent pending.
The U.S. International Trade Commission published a notice finding a violation of section 337 in Investigation No. 337-TA-1409 (Certain Storage Containers and Toolboxes, Organizers, Component Boxes, and Coolers) on October 2, 2026 (91 FR 62746; FR Doc. 2026-20208). The Commission vote and issuance were September 29, 2026.
Violation found on the '026 and '952 patents. LEO and CDO against Klein Tools. Bond during Presidential review: 18% of entered value. The '167 patent remains pending; target date November 2, 2026.
Parties, patents, and remedial orders
Complainants: Milwaukee Electric Tool Corporation (Brookfield, Wisconsin) and Keter Home and Garden Products Ltd. (Israel). Respondent: Klein Tools, Inc. (Lincolnshire, Illinois). The Office of Unfair Import Investigations is not a party. The investigation was instituted July 19, 2024 (89 FR 58764-65). Remaining asserted claims: claims 4 and 8 of U.S. Patent No. 11,365,026; claims 3, 4, 8, and 16 of U.S. Patent No. 11,794,952; and claims 2, 5, 8, 14, and 15 of U.S. Patent No. 11,952,167.
- Violation and remedy: the Commission finds a section 337 violation as to the '026 and '952 patents and issues a limited exclusion order (LEO) and a cease and desist order (CDO) against Klein prohibiting further importation and sale of covered products. Public interest factors did not counsel against remedial orders. The investigation is terminated as to the '952 and '026 patents.
- Bond: eighteen percent (18%) of entered value for covered articles imported or sold during the period of Presidential review. The Chief ALJ had recommended 63 percent.
- '167 patent still open: no final determination yet on U.S. Patent No. 11,952,167. Target date for completion of the investigation extended to November 2, 2026.
Violation: U.S. Patent Nos. 11,365,026 and 11,794,952 · LEO + CDO vs Klein Tools, Inc.
Bond during Presidential review: 18% of entered value (CALJ had recommended 63%)
U.S. Patent No. 11,952,167 pending · target date Nov 2, 2026 · Contact: Panyin A. Hughes (202) 205-3042
Review path and Commission holdings
On August 1, 2025, the Chief ALJ issued a final initial determination finding a violation, including infringement and validity findings on the remaining asserted claims and domestic industry under section 337(a)(3)(A) and (B). The Commission determined to review on January 21, 2026 (91 FR 3220). On the reviewed issues, the Commission set aside the FID finding on the date of the Auer Catalog but otherwise affirmed that Klein failed to show invalidity by clear and convincing evidence; vacated alternative technical-prong reasoning on "rib extending [away] from the back wall" but otherwise affirmed the technical prong; and affirmed under modified reasoning the economic prong under subsection 337(a)(3)(B) for the '026 and '952 patents.
Remedial orders are subject to a 60-day Presidential review period under 19 U.S.C. 1337(j), during which covered articles may enter under bond. The notice does not state an end date for that period. For another section 337 matter (institution only, different patents and respondent), see Apple iPhone/iPad section 337 (trinamiX).
A limited exclusion order bars entry of covered articles, so there is no consumption entry and no duty paid on excluded goods. Bonded entry during Presidential review is a separate 18 percent bond of entered value, not a customs duty. This is not an AD/CVD matter.
Action items
- Confirm coverage: retailers, distributors, and importers of modular storage and toolbox systems check whether sourced products are Klein products covered by the LEO.
- Plan for the bond: during Presidential review, covered articles may enter under the 18 percent entered-value bond.
- Watch the '167 target: November 2, 2026 for remaining proceedings on U.S. Patent No. 11,952,167.
- Flag in entry screening: brokers should flag the LEO when clearing modular storage, toolbox, organizer, component box, or cooler entries tied to Klein.
- FR Doc. 2026-20208 (91 FR 62746; Inv. No. 337-TA-1409; published Oct 2, 2026): Commission finds section 337 violation on U.S. Patent Nos. 11,365,026 and 11,794,952.
- LEO and CDO issued against Klein Tools, Inc. Bond during Presidential review: 18% of entered value (CALJ recommended 63%).
- No final determination yet on U.S. Patent No. 11,952,167; target date extended to November 2, 2026. Investigation terminated as to '026 and '952.
- Complainants: Milwaukee Electric Tool and Keter Home and Garden Products Ltd. Instituted July 19, 2024. Contact: Panyin A. Hughes (202) 205-3042.
- Exclusion bars entry of covered articles (no consumption entry or duty on excluded goods). The 18% Presidential-review bond is not a duty.
- Certain Storage Containers and Toolboxes, Organizers, Component Boxes, and Coolers; Notice of a Commission Determination To Find a Violation of Section 337; Issuance of Remedial Orders; Continued Proceedings as to One Patent; Extension of Target Date (Inv. No. 337-TA-1409; 91 FR 62746; FR Doc. 2026-20208) · U.S. International Trade Commission
This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.
