PAX Labs. v. STIIZY Action Continues Even After ITC Issues Exclusion Order

Back in March of 2024, the ITC began an investigation into whether STIIZY and another Respondent were infringing PAX Labs’ patented technology by importing “oil vaporizing devices.” ITC Inv. No. 337-TA-1392. The ITC issued a Final Determination in January of 2026 finding that STIIZY had infringed all four asserted patents. The Commission issued a limited exclusion order and a cease and desist Order against STIIZY.
On May 15, 2026, Customs’ Exclusion Order Enforcement (EOE) Branch issued a ruling letter finding that STIIZY’s redesigned vaporizer devices did not infringe the asserted patents. See HQ H359213.
On May 19, 2026, PAX filed an enforcement complaint against STIIIZY alleging that it continues to import infringing devices. On June 5, 2026 the Commission voted to institute an enforcement proceeding.
This is a good news/ bad news situation for the parties. The ITC enforcement proceeding is bad news for STIIZY. Any party found to violate a cease and desist order could face a fine up to the greater of $100,000 per day or twice the domestic value of the articles – a big number (as of now, we don’t know if STIIZY violated any order). But the Customs ruling letter is good news for STIIZY. It allows STIIZY to import its newly redesigned products with a reasonable degree of confidence that it is not infringing (although it is the Commission, not Customs, that gets the final word as to what is infringing).
All this activity reflects the large amounts of money being made in the vape industry.
Comments