U.S. International Trade Commission Finds Violation of Section 337 in Apple v. HTC Case

Strategic Insights -

The U.S. International Trade Commission (USITC) has made a final determination in the case of Apple Inc. v. HTC Corporation, finding a violation of section 337 in the importation and sale of personal data and mobile communications devices and related software. The Commission has issued a limited exclusion order prohibiting the entry of personal data and mobile communications devices and related software that infringe claims 1 and 8 of U.S. Patent No. 5,946,647. The order will take effect on April 19, 2012, to provide a transition period for U.S. carriers.

Key Takeaways:

  • The USITC found a violation of section 337 by HTC due to the infringement of claims 1, 8, 15, and 19 of the '647 patent, and claims 1, 2, 24, and 29 of the '263 patent.
  • The Commission affirmed the ALJ's conclusion that there has been no violation as to the '721 and '983 patents.
  • The Commission determined that the appropriate remedy is a limited exclusion order prohibiting the entry of personal data and mobile communications devices and related software that infringe claims 1 or 8 of the '647 patent.
  • The Commission has determined to reverse the ALJ's finding of violation as to claims 15 and 19 of the '647 patent and as to the asserted claims of the '263 patent.
  • HTC may import refurbished handsets until December 19, 2013, as replacements under warranty or an insurance contract.
  • The Commission has determined not to issue a cease and desist order and that zero bonding is required during the period of Presidential review.

Statistics:

  • The investigation was initiated on April 6, 2010, and was transferred to the USITC citing a violation of section 337 in the importation, sale for importation, and sale within the United States after importation of certain personal data and mobile communications devices and related software.
  • The Commission has issued a limited exclusion order prohibiting the entry of personal data and mobile communications devices and related software that infringe claims 1 and 8 of the '647 patent.
  • The order will take effect on April 19, 2012, to provide a transition period for U.S. carriers.
  • HTC is authorized to import refurbished handsets until December 19, 2013, as replacements under warranty or an insurance contract.
  • The investigation is terminated, and the Commission's order and opinion were delivered to the President and the United States Trade Representative on the day of their issuance.

Sources:

  • "In the Matter of CERTAIN PERSONAL DATA AND MOBILE COMMUNICATIONS DEVICES AND RELATED SOFTWARE Investigation No. 337-TA-710 NOTICE OF THE COMMISSION'S FINAL DETERMINATION FINDING A VIOLATION OF SECTION 337; ISSUANCE OF A LIMITED EXCLUSION ORDER; TERMINATION OF THE INVESTIGATION" - U.S. International Trade Commission, December 19, 2011.
  • "Inv. No. 337-TA-704, Order No. 5" - U.S. International Trade Commission, April 26, 2010.