A Powerful Weapon Against Infringing Imports

Under section 337 of the Tariff Act, the U.S. International Trade Commission conducts investigations into allegations of certain unfair practices in import trade. Most involve claims of patent infringement or registered trademark infringement, but other forms of unfair competition such as misappropriation of trade secrets, common law trademark and trade dress infringement and “passing off” may also be asserted.

Federal courts have broad discretion to issue injunctions to stop unlawful infringement, but only if needed to prevent irreparable injury. Moreover, district courts permit the litigation of all legal and equitable defenses, which can take time. Section 337 investigations have the advantages of speed, broad jurisdiction and expertise – ALJs work almost exclusively on IP cases.

Investigations are instituted by the Commission based on a complaint. A formal evidentiary hearing is conducted by an administrative law judge. Following the hearing on the merits, the ALJ issues an Initial Determination (ID). The Commission may review and adopt the ID, decide not to review it, or modify or reverse or remand the ID to the ALJ. If the Commission adopts or declines to review an ID, it becomes the final determination.

By statute, section 337 investigations must be completed “at the earliest practical time.” As a result, the Commission places great emphasis on the timeliness of investigations. The benefit of a fast, effective and reliable determination is what makes 337 investigations the number one weapon available to IP holders to stop infringing imports.