Justia International Trade Opinion Summaries

Lashify, Inc., an American company, distributes and sells eyelash extensions and related products in the United States, which are manufactured abroad. Lashify holds patents on these products and filed a complaint with the International Trade Commission (ITC) alleging that other importers were infringing on its patents, specifically a utility patent (U.S. Patent No. 10,721,984) and two design patents (U.S. Design Patent Nos. D877,416 and D867,664). Lashify sought relief under section 337 of the Tariff Act of 1930, which requires the existence of a domestic industry related to the patented articles.The ITC denied Lashify relief, ruling that Lashify failed to meet the economic-prong requirement of the domestic-industry test, which demands significant investment in plant and equipment, significant employment of labor or capital, or substantial investment in exploitation of the patents. The ITC excluded expenses related to sales, marketing, warehousing, quality control, and distribution, deeming them insufficient to establish a domestic industry. Additionally, the ITC found that Lashify's products did not satisfy the technical-prong requirement for the utility patent, as the products did not meet the "heat fused" claim limitations.The United States Court of Appeals for the Federal Circuit reviewed the case. The court agreed with Lashify that the ITC applied an incorrect legal standard for the economic-prong requirement. The court held that significant employment of labor or capital should include expenses related to sales, marketing, warehousing, quality control, and distribution. The court vacated the ITC's decision on the economic prong and remanded for reevaluation regarding the design patents. However, the court affirmed the ITC's finding that Lashify failed to satisfy the technical-prong requirement for the utility patent, upholding the construction of "heat fused" to mean joined to form a single entity. View "LASHIFY, INC. v. ITC " on Justia Law

US Synthetic Corp. (USS) filed a complaint with the United States International Trade Commission (Commission) alleging that several intervenors violated 19 U.S.C. § 1337 by importing and selling products that infringe five of USS’s patents. The focus of this appeal is U.S. Patent No. 10,508,502 (’502 patent), which claims a polycrystalline diamond compact (PDC) with specific structural and magnetic properties.The Commission instituted an investigation, and the administrative law judge (ALJ) determined that the asserted claims of the ’502 patent were infringed and not invalid under 35 U.S.C. §§ 102, 103, or 112. However, the ALJ found the claims patent ineligible under 35 U.S.C. § 101, as they were directed to an abstract idea. The Commission reviewed and affirmed the ALJ’s determination, concluding that the claims were directed to the abstract idea of achieving desired magnetic properties, which were seen as side effects of the manufacturing process.The United States Court of Appeals for the Federal Circuit reviewed the case. The court concluded that the asserted claims of the ’502 patent are not directed to an abstract idea but to a specific, non-abstract composition of matter defined by its constituent elements, dimensional information, and quantified material properties. The court found that the magnetic properties are integrally related to the structure of the PDC and are not merely side effects. Therefore, the claims are not directed to an abstract idea under Alice step one, and the court did not reach Alice step two.The court also addressed the alternative argument that the claims were not enabled. The court found no error in the Commission’s conclusion that the claims were enabled, as the respondents failed to prove a lack of enablement by clear and convincing evidence. The court reversed the Commission’s conclusion on patent ineligibility, affirmed the enablement conclusion, and remanded the case. View "US SYNTHETIC CORP. v. ITC " on Justia Law

Wuhan Healthgen Biotechnology Corp. (Healthgen) appealed a final determination from the International Trade Commission (Commission) which found that Healthgen’s clinical grade albumin products infringed claims of U.S. Patent No. 10,618,951, owned by Ventria Bioscience Inc. (Ventria). The patent pertains to cell culture media containing recombinant human serum albumin produced in a genetically modified plant. Healthgen imports clinical and medium grade recombinant human serum albumin (rHSA) products, and Ventria alleged that these imports violated Section 337 of the Tariff Act of 1930 due to patent infringement.The Administrative Law Judge (ALJ) initially found that Healthgen’s clinical and medium grade rHSA products infringed the patent and that Ventria satisfied the domestic industry requirement based on six rHSA products. The Commission affirmed the ALJ’s finding of infringement for the clinical grade products but not for the medium grade products. The Commission also affirmed that Ventria satisfied the domestic industry requirement based on one product, Optibumin, without further analysis of the other five products.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that substantial evidence supported the Commission’s findings. The court affirmed the Commission’s determination that Healthgen’s clinical grade products infringed the patent based on SEC-HPLC data showing less than 2% aggregated albumin. The court also upheld the Commission’s finding that Ventria satisfied the domestic industry requirement, noting that all investments and activities related to Optibumin occurred within the United States and that the investment-to-revenue ratio indicated significant investment despite low revenue.The Federal Circuit affirmed the Commission’s decision, concluding that Healthgen’s clinical grade products infringed the patent and that Ventria met the domestic industry requirement. View "WUHAN HEALTHGEN BIOTECHNOLOGY CORP. v. ITC " on Justia Law

Celanese International Corporation, Celanese (Malta) Company 2 Limited, and Celanese Sales U.S. Ltd. (collectively, “Celanese”) filed a petition with the United States International Trade Commission (the “Commission”), alleging that Anhui Jinhe Industrial Co., Ltd., Jinhe USA LLC (collectively, “Jinhe”), and other entities violated 19 U.S.C. § 337 by importing Ace-K (an artificial sweetener) made using a process that infringed Celanese’s patents. The patents in question had an effective filing date of September 21, 2016. It was undisputed that Celanese had sold Ace-K made using the patented process in the United States before the critical date of September 21, 2015.The presiding Administrative Law Judge (ALJ) granted Jinhe’s motion for a summary determination of no violation of 19 U.S.C. § 337, concluding that Celanese’s prior sales triggered the on-sale bar under 35 U.S.C. § 102(a)(1). The ALJ found that the America Invents Act (AIA) did not overturn settled pre-AIA precedent, which held that sales of products made using a secret process could trigger the on-sale bar, precluding the patentability of that process. The Commission denied Celanese’s petition for review, making the ALJ’s decision the final decision of the Commission.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Commission’s decision. The court held that the AIA did not alter the pre-AIA rule that a patentee’s sale of an unpatented product made according to a secret method triggers the on-sale bar to patentability. The court concluded that Celanese’s pre-2015 sales of Ace-K made using its secret process triggered the on-sale bar, rendering the later-sought patent claims on that process invalid. View "CELANESE INTERNATIONAL CORPORATION v. ITC " on Justia Law

In 2020, Zircon Corp. filed a complaint with the United States International Trade Commission alleging that Stanley Black & Decker, Inc. and Black & Decker (U.S.), Inc. violated section 337 of the Tariff Act of 1930 by importing and selling electronic stud finders that infringed on Zircon's patents. The Commission instituted an investigation based on Zircon's complaint. A Commission Administrative Law Judge (ALJ) found no violation of section 337. On review, the Commission affirmed the ALJ's finding of no violation.The Commission's decision was based on two independent reasons. First, it affirmed the ALJ's determination that Zircon had not satisfied the economic prong of the domestic industry requirement. Zircon had argued that it met this requirement based on its investment in plant and equipment, its employment of labor and capital, and its investment in the exploitation of the asserted patents. However, the Commission found that Zircon had not provided an adequate basis to evaluate the investments and the significance of those investments with respect to each asserted patent.Second, the Commission found each of the claims of the patents that were before the Commission were either invalid or not infringed. The Commission found that all the asserted claims of one patent would have been obvious in view of four prior art references; that several claims of two other patents were invalid as anticipated by or obvious in light of Zircon’s original stud finder; and that several of the claims of these two patents were not infringed.Zircon appealed the Commission's decision, but the United States Court of Appeals for the Federal Circuit affirmed the Commission's decision. The court agreed with the Commission's interpretation of section 337 and found that substantial evidence supported the Commission's finding that Zircon failed to meet its burden to prove the existence of a domestic industry relating to articles protected by each of its patents. View "ZIRCON CORP. v. ITC " on Justia Law

Corning filed a complaint with the International Trade Commission alleging FS violated 19 U.S.C. 1337 by importing high-density fiber optic equipment that infringed four patents that generally relate to fiber optic technology commonly used in data centers. After investigating, the ALJ found that FS’ importation of high-density fiber optic equipment violated section 337; that FS induced infringement of two claims of the 320 patent, multiple claims of the 456 patent, and four claims of the 153 patent; and that FS’ accused modules directly infringed claims of the 206 patent. The ALJ adopted the Office of Unfair Import Investigations’ construction of “a front opening” as recited in the claims. The ALJ rejected invalidity challenges, including arguments that certain claims of the 320 and 456 patents were not enabled.The Federal Circuit affirmed the Commission’s determination that FS violated section 337, and issuance a general exclusion order prohibiting the importation of infringing high-density fiber optic equipment and components thereof and a cease-and-desist order directed to FS. The court upheld the enablement determination and the claim construction of “a front opening.” View "FS.com Inc. v. International Trade Commission" on Justia Law

Reynolds filed a complaint at the International Trade Commission alleging that Philip Morris violated Section 337 of the Tariff Act, 19 U.S.C. 1337, through the importation and sale of tobacco products (the IQOS line of electronic nicotine delivery system products) that infringed certain claims of the 123 and 915 patents. The patents are directed to electrically powered “smoking articles” that heat tobacco instead of burning it, providing an inhalable substance in vapor or aerosol form. After an investigation, the Commission barred Philip Morris and its affiliates from importing products infringing the asserted patents.The Federal Circuit affirmed. The Commission satisfied its Section 337 duty to “consult with” the Department of Health and Human Services and asked interested government agencies, including the FDA, to provide written submissions on the public interest factor. The Commission provided a sufficient basis for the issuance of an exclusion order. Philip Morris’s argument that Reynolds’ products that had not received FDA authorization are precluded from consideration by Section 337 for purposes of its domestic industry requirement has no merit. The court also upheld findings of non-obviousness and infringement concerning the patents. View "Philip Morris Products S.A. v. International Trade Commission" on Justia Law

INVT alleged that the importation and sale of personal devices, such as smartphones, smartwatches, and tablets, infringed INVT's patents. An ALJ determined that the accused devices did not infringe claims 3 and 4 of the 590 patent and claims 1 and 2 of the 439 patent and that INVT had failed to meet the technical prong of the domestic industry requirement as to those claims.The International Trade Commission affirmed the finding of no 19 U.S.C. 1337 (section 337) violation. The Federal Circuit affirmed the determination with respect to the 439 patent because INVT failed to show infringement and the existence of a domestic industry. The 439 patent relates to wireless communication systems, specifically an improvement to adaptive modulation and coding, which is a technique used to transmit signals in an orthogonal frequency division multiplexing system. The asserted 439 claims are drawn to “capability” but for infringement purposes, a computer-implemented claim drawn to a functional capability requires some showing that the accused computer-implemented device is programmed or otherwise configured, without modification, to perform the claimed function when in operation. INVT failed to establish that the accused devices, when put into operation, will ever perform the particular functions recited in the asserted claims. The determination with respect to the 590 patent is moot based on the patent’s March 2022 expiration. View "INVT SPE LLC v. International Trade Commission" on Justia Law

Broadcom’s 583 patent is directed to reducing power consumption in computer systems by “gating” clock signals with circuit elements to turn the signals ON and OFF for downstream parts of the circuit; its 752 patent is directed to a memory access unit that improves upon conventional methods of requesting data located at different addresses within shared memory. Broadcom alleged violations of 19 U.S.C. 1337 based on Renesas's importation of products that allegedly infringe those patents.An ALJ held that Broadcom failed to demonstrate a violation with respect to the 583 patent, citing the technical prong of the domestic industry requirement; Broadcom failed to identify an actual domestic industry article that practices claim 25. For the 752 patent, the ALJ held that claim 5 would have been unpatentable as obvious. The International Trade Commission affirmed. In inter partes review, the Patent Trial and Appeal Board held that claims 25 and 26 of the 583 patent and claims 1, 2, 5, 7, and 8 of the 752 patent would have been obvious over prior art but that Renesas failed to demonstrate that other claims of the 583 patent would have been obvious.With respect to the 583 patent, the Federal Circuit affirmed the Board’s holding and affirmed the holding that there was no domestic industry. With respect to the 752 patent, the court affirmed the entirety of the Board’s holding. View "Broadcom Corp. v. International Trade Commission" on Justia Law

In 2017, Kyocera filed a complaint with the International Trade Commission, alleging Koki was violating 19 U.S.C. 1337 by importing gas spring nailer products that infringe or were made using methods that infringe, certain claims in five patents. Those patents generally relate to linear fastener driving tools, like portable tools that drive staples, nails, or other linearly driven fasteners. The Commission held that Koki induced infringement.The Federal Circuit vacated. The ALJ erred in admitting certain expert testimony. The court upheld claim construction with respect to “driven position” and “main storage chamber” but rejected the construction of “lifter member.” The “safety contact element” and “fastener driving mechanism” should have been construed as separate components. View "Kyocera Senco Industrial Tools Inc.v. International Trade Commission" on Justia Law