The US International Trade Commission (ITC) has proven to be a formidable mechanism for protecting intellectual property (IP) at the border. Established under the Tariff Act of 1930, specifically Section 337, the ITC was designed to prevent the importation of products and materials that infringe upon US IP. The ITC has recently gained attention for its decision to block certain imports of the Apple Watch citing patent infringement.
Many companies view the ITC as an attractive option for IP protection due to its relatively swift adjudication process, typically reaching an initial decision in about 12 months, compared to the three years often required in district court litigation. Unlike district courts, the ITC cannot award monetary damages for infringement; it can, however, issue exclusion orders and cease-and-desist orders, effectively blocking infringing products from entering the US market. This has made it a valuable tool for rights holders amid growing international competition.
Litigation at the ITC is economically efficient and can stymie the importation of infringing articles swiftly. According to the USITC Congressional Budget Justification, the ITC oversees investigations primarily involving patent disputes, though it also addresses other IP-related issues such as copyright, trademark infringements, and cases of trade secret misappropriation.
At the helm of the ITC are six commissioners appointed by the president and confirmed by the Senate, each serving nine-year terms. Administrative law judges (ALJs) handle the trials, bringing extensive experience in patent law to the table. Their determinations can be reviewed by the commission, which may either affirm, modify, reverse, or remand part or all of the ALJ’s decisions. Subsequently, Customs and Border Protection enforces the ITC’s exclusion and cease-and-desist orders at US ports of entry.
The ITC’s scope to secure IP rights was recently evidenced in the high-profile case involving Masimo Corporation and Cercacor Laboratories, Inc. against Apple. The ITC initiated an investigation into certain Apple Watches over patent infringement claims. Following an efficient investigation period, which included fact and expert discovery, a technology tutorial, and a claim construction hearing, the ITC issued a cease-and-desist order and an exclusion order against Apple Watches found to infringe Masimo’s patents. President Joe Biden chose not to overturn this decision, though Apple has appealed.
This case highlights the ITC’s capacity for timely resolution and the high level of expertise among its judges, making it a exemplary forum for companies seeking to block the importation of products that infringe on US IP. For a more detailed analysis, check the full article here.