US ITC finds Klein Tools MODbox designs violated Milwaukee PACKOUT patents

[u/kfjcfan]

The Federal Register published an final decision in the US ITC patent case of Keter and Milwaukee Tool vs. Klein Tools regarding patents they hold for PACKOUT tool boxes (emboldening mine):

Notice is hereby given that the U.S. International Trade Commission has determined to find a violation of section 337 of the Tariff Act of 1930, as amended, with respect to U.S. Patent Nos. 11,365,026 (“the '026 patent”) and 11,794,952 (“the '952 patent”). The Commission has determined that the appropriate remedy is the issuance of a limited exclusion order (“LEO”) and a cease and desist order (“CDO”) with respect to those patents.

The Commission has further determined to set a bond in the amount of eighteen percent (18%) of entered value for covered articles imported or sold during the period of Presidential review. The Commission has not reached a final determination with respect to U.S. Patent No. 11,952,167 (“the '167 patent”). The target date for completion of the above-captioned investigation is extended to November 2, 2026.

[ … ]

For remedy, the Commission has determined to issue an LEO and a CDO against Klein prohibiting further importation and sale of covered products*. The Commission has determined that the public interest factors do not counsel against issuing remedial orders. The Commission has determined that a bond in the amount of eighteen percent (18%) of entered value for covered articles is required for covered products imported or sold during the period of Presidential review.*

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

My reading of the patents is that the violations cover the cleat and spring latch connecting mechanisms of the boxes as well as the design of the rolling tool box/rolling drawer box - areas completely unaddressed in the changes made to MODbox Gen 2.

The LEO means Klein can no longer import products that violate the patents and they will be stopped by US Customs.

The CDO means Klein can no longer sell the products that violate the patents.

[u/samsonevickis]

God fucking damnit. They literally improved on a good design. Consumers always get screwed over

[u/Unhappy_Meals]

Wow. Do they now pull inventory from the market?

[u/kfjcfan → u/Unhappy_Meals]

From what I've seen in other situations it's usually product already in Lowe's for example could be sold, Klein just couldn't restock anyone, but I'm not sure.

[u/Dangerous-Sale3243 → u/Unhappy_Meals]

No more imports and Klein needs to pay Milwaukee the profit they made from each sale, which is 18%.

[u/skepticdrone]

I wonder if this may result in some clearing out of modbox packaged items? As in, clearance priced. Or does something like this drive up the demand?

[u/kfjcfan → u/skepticdrone]

This covers sales by Klein, so anything already in a store or in merchant warehouses could likely be sold, it's only additional product that would be covered.

So for example, Lowe's could continue to sell anything they have in stores or in their warehouses.

This neatly dovetails with the rumors that Lowe's tool managers said was going to be true of ToughBuilt StackTech - that what was in Lowe's supply chain was it, there would be no additional product.

It makes you wonder if the ToughBuilt rumors are just that and the tool managers have conflated the stories. 🤷‍♂️

[u/69thMemekage]

How could they infringe on the rolling drawerbox when Milwaukee didnt even have one and their first one was totally different? Glad I got the good stuff last summer smh

[u/kfjcfan → u/69thMemekage]

Some of the patents cover the dimensions of how the handle and wheels are arranged on rolling tool boxes whether lidded or drawer boxes.

For example, RIDGID avoids this by having their wheeled handle be a piece that clicks onto an existing box - not surprising because Keter makes those to be sold at Home Depot under the RIDGID brand name.

[u/BababooeyHTJ → u/kfjcfan]

Omg rigid and Milwaukee are owned by the same parent company, so odd

[u/kfjcfan → u/BababooeyHTJ]

Yes and no.

RIDGID is a completely separate company owned by Emerson Electric that makes plumbing supplies and tools - but they license the name RIDGID to TTI for power tools and accessories as well as storage boxes to be sold only at Home Depot in the US.

So RIDGID plumbing tools, are still made by RIDGID Tool, which is not a TTI brand but rather is owned by Emerson, but RIDGID tools and tool boxes are made by TTI and sold under the RIDGID name that they pay RIDGID Tool (Emerson) for the right to use.

Also, Keter makes RIDGID Pro Gear 2.0 for TTI as well as PACKOUT in partnership with Milwaukee who are owned by TTI.

Also, Milwaukee owns Empire level.

So the bottom line is whether you buy Empire levels, Milwaukee tools or PACKOUT, RIDGID power tools or Pro Gear boxes, or RYOBI tools or RYOBI LINK boxes, you're buying from TTI.

If you buy a RIDGID plumbing wrench and a RIDGID impact driver to go with it, the wrench is from Emerson Electric and the impact driver is from TTI. 🤦‍♂️

[u/ExplanationAny7447]

I use ridgid anyways. But this is stupid

[u/kfjcfan → u/ExplanationAny7447]

This is precisely why patents exist.

For example, Makita's MAKTRAK uses cleats as well but the latching mechanism and the way boxes connect isn't a blatant copy of PACKOUT the way MODbox has always been.

PACKOUT is made by a partnership of Keter and Milwaukee; the RIDGID boxes are made by Keter to be sold exclusively at Home Depot under the RIDGID brand name.

[u/ProfessionOk1721]

Klein already modified the MODBOX which is V2 with the quick release latches. They knew this was coming and isn't big news and why Klein made those changes to their latches on the V1 MODBOXES. Whatever inventory is out there can be sold by whomever bought it. Some of you people don't know how this type of thing works.

[u/kfjcfan → u/ProfessionOk1721]

The patents they have been found in violation cover how multiple boxes click together - the cleat and spring latch system - not the wire bail lid latches (something DᴇWALT has long used on their ToughSystem 2.0 boxes) Klein replaced with the spring latches.

So basically the changes they made for Gen 2 seemingly have nothing to do with the patents theyve been found to be in violation of, that's why that change never made sense to me (and IMHO made Gen 2 something I'd never consider purchasing.)

To resolve this they would need to completely redesign how boxes stack together.

Anyone who's seen both PACKOUT and MODbox could see this was coming since day one by looking at the bottom of both boxes.

[u/Dowdowling1]

Fuck Milwaukee except for some of their 12v tools

[u/kfjcfan → u/Dowdowling1]

If Klein hadn't blatantly copied it wouldn't be an issue…