CALL US: 206.533.3854
CALL US  206.533.3854
AEON Law logo full color transparent

Import Loophole Harms U.S. Patents

Federal Circuit
Considers closing loophole
In patent cases

The full Federal Circuit Court of Appeals has agreed to review a panel decision that found the US International Trade Commission (ITC) may not hear certain cases involving induced patent infringement.

The ITC and the owner of the US patent at issue petitioned for an en banc hearing of a December ruling that the ITC lacked the authority to exclude imports into the US of products that do not infringe US patents at the time they’re imported but only infringe once they’re in the US.

The panel had ruled that the ITC’s Section 337 on exclusion orders did not cover imports of fingerprint scanners made by Suprema Inc., a company based in South Korea.

Suprema’s scanners were found not to infringe a US patent on their own but only when used in combination with software made by Mentalix Inc., a US company which imports the scanners.

The panel said that the ITC can ban items imported by a person or entity that “induces” patent infringement only if the imported product, standing alone, directly infringes a US patent.

The panel then vacated the ITC’s order excluding the scanners.

The dispute was initiated by Cross Match, a US company that holds a patent it claims was infringed by the scanners when used with the software.

Unless reversed by the full court, the panel’s decision may help the importers of devices like smartphones and tablets that incorporate infringing features that can be “turned off” before import into the US and then reactivated before sale in the US market.

Judge Jimmie Reyna of the Federal Circuit dissented from the majority’s decision, writing that it “created a fissure in the dam of the U.S. border through which circumvention of Section 337 will ensue, thereby harming holders of U.S. patents.”

He noted that for many years the ITC decided cases in which induced infringement didn’t occur until after items were imported.

He said that the Federal Circuit had affirmed some of those previous rulings.

Related Articles

Federal Circuit Affirms Blockchain Gem Patent Is Invalid

The Federal Circuit has affirmed a lower court’s decision finding the claims of a patent for preventing gemstone counterfeiting invalid. The case is Rady v. ...
Read More

Tennessee Passes Law Against AI Voice Copies

The state of Tennessee has passed a law against the use of artificial intelligence (AI) to copy a person’s voice. The law, signed on March ...
Read More

Bill Proposes IP Protection for Golf Courses

Congressmen Brian Fitzpatrick (R-PA) and Jimmy Panetta (D-CA) have introduced the Bolstering Intellectual Rights against Digital Infringement Enhancement (a.k.a. the BIRDIE Act), which proposes amending ...
Read More

Let's work together.

Contact us to set up a meeting with an attorney or team member.

Stay Informed

Sign up to receive Patent Poetry—a monthly roundup of key IP issues in our signature haiku format. Four articles (only 68 syllables); zero hassle.

SECTORS

HIGH
TECHNOLOGY

Artificial Intelligence

Blockchain & Cryptocurrency

Computer Technology & Software

Consumer Electronics

Electrical Devices

MECHANICAL
& PRODUCTS​

Cleantech

Mechanical Devices

Consumer & Retail Products

Hardware & Tools

Toys & Games

LIFE SCIENCES
& CHEMISTRY​

Biotechnology

Chemical Compounds

Digital Health

Healthcare Products

Pharmaceuticals

BRANDING
& CREATIVE​

Books & Publications

Brand Creation

Luxury Products

Photography & Video

Product Design

SERVICES

PROTECT

DEAL

DEFEND