Monday, August 4, 2014

Purely Revenue-Driven Licensing Activities Alone Do Not Satisfy Domestic Industry Requirement for ITC Investigation

The ALJ granted respondent's motion for summary determination of no domestic industry and terminated complainant's investigation because complainant was a licensing entity whose patent-related activities were purely revenue-driven. "No nexus is asserted between [complainant's] licenses and development of the patented technology through production-related activities. In these circumstances, without evidence of any effort or investment by [complainant] directed to development of the patented technology ([complainant] relies on no such evidence), its revenue-driven activities do not satisfy the requirements of the [Schaper Manufacturing Co. v. Int'l Trade Comm 'n, 717 F.2d 1368 (Fed. Cir. 1983)] principle or subsection (C) [of 19 U.S.C. § 1337(a)(3)]. [Complainant's] licenses are divorced from any effort to develop patented technology or to bring products to the marketplace. The only purpose of its licenses, as set forth in [complainant's] own Business Plan, is to obtain revenue. . . . [T]he nature of [complainant's] licensing activities is, beyond dispute, 'revenue driven.'. . . [Complainant] cannot demonstrate (and does not even allege) any other domestic industry activities. As a result, [it] cannot establish a domestic industry as a matter of law."

Optical Disc Drives, Components Thereof, and Products Containing the Same, 337-TA-897 (ITC July 30, 2014, Order) (Lord, ALJ)

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