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International Trade Commission decision allowing a patent owner to rely on its licensee's activities to satisfy the trade body's domestic industry requirement illustrates a way for nonpracticing entities to get in the ITC's door that could be a costly headache for their unsuspecting licensees, attorneys say. The case hinged on the ITC's domestic industry requirement, which states that in order to file a patent suit at the commission, the patent owner must show that a U. In a March 1 decision, an ITC judge held that a nonpracticing entity satisfied Stay ahead of the curve In the legal profession, information is the key to success.
Access to case data within articles numbers, filings, courts, nature of suit, and more. Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more! Attached Documents Opinion. I'm Law's automated support bot. SciGen sought to establish a domestic industry by proving SunEdison made substantial investments in plant, equipment, marketing and labor and by demonstrating the necessary nexus between those activities and the patents at issue. Soitec argued that SunEdison should have been a co-complainant since SciGen is a non-practicing entity with no domestic industry of its own.
Judge McNamara explained that the Commission does not require third-party licensees to participate as co-complainants. GlobalWafers Co. Soitec argued that the SciGen should not be allowed to treat SunEdison as a licensee because SunEdison was no longer an independent company and because GlobalWafers may not hold a license to the asserted patents. Judge McNamara explained that the appropriate date for determining domestic industry is the date a complaint is filed even though, in cases where evidence shows a dwindling industry, the Commission may consider activities beyond the complaint date.
Judge McNamara therefore found the SunEdison acquisition to be largely irrelevant to the issue of a domestic industry in this case. In order to establish a violation under 19 U. This domestic industry requirement has both an economic prong and a technical prong. A complainant satisfies the economic prong by establishing one of three disjunctive economic criteria. Those criteria are: significant investment in plant and equipment; significant employment of labor, or capital; or substantial investment exploiting the patent, including engineering, research and development, or licensing.
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