ITC
ITC: A YEAR IN REVIEW
From big brand battles to patent trolling disputes, it’s been a busy year for the US International Trade Commission. WIPR takes a look at 2012’s headline events so far.
In 2011, the US International Trade Commission (ITC) reported a record number of Section 337 complaint fi lings. 70 investigations were launched, and tech giants from Apple to Samsung sued, countersued and sought exclusion orders against their rivals. T is year, the battle of the brands continued and at the ITC, business is booming.
Digital disputes
In May, the commission launched an investigation into a complaint made by Texan company Longview against 45 respondents, including Olympus, Panasonic and Toshiba, concerning devices with a retractable USB connector. In January, it investigated infringement claims made against 21 mobile phone and tablet manufacturers—among them Nokia, Sony and Research in Motion—and in April, issued a limited exclusion order against HTC aſt er ruling that its Android smartphones were in violation of patents held by Apple.
But not all of the commission’s pending investigations concern high profi le technology brands. T e USITC is also investigating disputes relating to construction components, medical devices and kitchenware. And in January, US and Canada based Standard
Innovation Corporation fi led a complaint against 21 companies over patents relating to its bestselling product, the ‘We-Vibe’ vibrator.
Streamlining procedures
To keep up with its increasing caseload, the ITC appointed a further two administrative judges this year and a second courtroom, built to accommodate Section 337 hearings, will be ready for use in the autumn. T e commission has also been working to streamline Section 337 procedures through both minor rule changes (details of which can be found on the ITC’s website) and research into e-discovery and the handling of electronic documents during proceedings.
Aſt er two years of record fi lings, the commission is predicting a decline in the number of new complaints for 2012, but this has not led to a lighter workload. “We anticipate fi lings will still be above historical averages, but because of heavy fi lings in 2011, we’ll see a record number of pending matters,” said spokesperson Margaret O’Laughlin.
“T e new courtroom will contribute to the more timely resolution of investigations,” said O’Laughlin,
34 World Intellectual Property Review September/October 2012 Trolling concerns
With a rise in headline cases, the USITC has been placed under increasing scrutiny and in July, both IP lawyers and national corporations expressed their concern that the commission’s Section 337 complaint process is subject to abuse from so-called patent trolls— licensing fi rms that buy patents, but don’t make products.
Under the amended Tariff Act, non-practising entities (NPEs) have been allowed to fi le complaints with the ITC since 1988. T e commission divides NPEs into two categories: category one includes those who hold patents but do not produce related products, including laboratories, universities and start-ups, and category two covers those who don’t make products and are primarily concerned with purchasing and asserting patents.
While the Section 337 process and its domestic industry requirement are designed to protect
www.worldipreview.com “but like all federal government agencies, the
commission’s biggest challenge in 2013 will be fi nding ways to continue to perform its mission in an environment of declining federal budgets.”
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