Breakdown of R&D Expenses on Patent-Specific Basis Not Required for ITC Domestic Industry

Following an evidentiary hearing, the ALJ found that complainant satisfied the economic prong of the domestic industry requirement as to its image processing patent. "Respondents' requirement that the expenses be allocated down to the amount spent on the actual asserted patent to be unsupported by Commission precedent. Much of the Commission's discussion involving a nexus between the asserted patents and the complainant's activities were directed toward licensing activities. . . . Respondents cite to no requirement or Commission precedent that requires allocation of research and development expenses on a specific article or product be broken down into the amount related to any specific patents. Rather, Commission precedent has held that research and development activities directed toward articles that incorporate the disputed technology is sufficient."

Electronic Imaging Devices, 337-TA-850 (ITC November 4, 2013, Order) (Essex, ALJ)