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U.S. International Trade Commission Terminates Investigation Finding No Violation of Section 337

Strategic Insights

— 2 min read

The U.S. International Trade Commission has terminated an investigation into allegations of patent infringement by Apple Inc. The Commission determined that no violation of section 337 of the Tariff Act of 1930 was shown, reversing the findings of the Administrative Law Judge (ALJ). The investigation, which began in May 2010, involved allegations by S3 Graphics Co. Ltd. and S3 Graphics Inc. that Apple infringed on several patents. Despite the ALJ's initial finding of a violation, the Commission ultimately found no infringement and terminated the investigation.

Key Takeaways:

  • The U.S. International Trade Commission instituted an investigation on May 19, 2010, based on a complaint by S3 Graphics Co. Ltd. and S3 Graphics Inc. (collectively, "S3G") alleging patent infringement by Apple Inc.
  • The complaint named Apple Inc. as the only respondent and alleged violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) by reason of infringement of various claims of United States Patent Nos. 6,658,146 ("the '146 patent"); 6,683,978 ("the '978 patent"); 6,775,417 ("the '417 patent"); and 7,043,087 ("the '087 patent").
  • On July 1, 2011, the ALJ issued a final ID in this investigation finding that Apple violated section 337, recommending a limited exclusion order and a cease and desist order.
  • The Commission determined to review the ID in its entirety and on September 2, 2011, it decided to reverse the ALJ's finding of a violation of section 337 and find no violation.
  • Advanced Micro Devices, Inc. ("AMD") and its subsidiaries ATI Technologies ULC and ATI International SRL filed a motion to intervene and terminate the investigation based on a claim that AMD owns the patents at issue and declines to assert them.
  • The Commission ultimately determined to deny AMD's motion to intervene and terminate, and to deny Apple's motion to terminate, despite reversing the ALJ's finding of a violation.
  • The investigation was terminated on November 21, 2011, after the Commission reviewed the record of the investigation and submissions of the parties and non-parties.

Statistics:

  • Date of institution of the investigation: May 19, 2010
  • Date of filing of the complaint: July 1, 2010
  • Date of issuance of the ALJ's final ID: July 1, 2011
  • Date of determination to review the ID: September 2, 2011
  • Date of determination to extend the target date for completion of the investigation: September 19, 2011
  • Date of termination of the investigation: November 21, 2011

Sources:

  • "Notice of Institution of Investigation" (May 19, 2010) - 75 FR 38118
  • "Notice of the Commission's Final Determination" (November 21, 2011)
  • U.S. International Trade Commission Rules of Practice and Procedure (19 CFR part 210)
  • United States Patent Nos. 6,658,146; 6,683,978; 6,775,417; and 7,043,087

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