The ITC Is Opening More Patent Investigations Than Ever: What Business Owners Need to Know

The U.S. International Trade Commission has been launching more patent infringement investigations than ever before, opening probes into intellectual property disputes that have not previously been brought before the agency. This surge in activity is being driven by recent federal court decisions that have broadened who can file complaints with the ITC, making it an increasingly attractive venue for patent owners looking to block infringing products from entering the United States. For businesses that import goods or compete against foreign manufacturers, understanding what the ITC does and why it matters has never been more important.

What Is the ITC and How Does It Work?

The International Trade Commission is a federal agency with the power to investigate claims that imported goods infringe U.S. patents, trademarks, or other intellectual property rights. These investigations, known as Section 337 cases, move much faster than traditional patent lawsuits in federal court, often reaching a final decision in 12 to 18 months. The most powerful remedy the ITC can issue is an exclusion order, which directs U.S. Customs and Border Protection to block infringing products at the border. For patent owners, this is an extraordinarily effective tool because it does not just award money damages. It physically stops the infringing products from reaching American consumers.

Why the Surge in New Investigations?

Two recent decisions by the U.S. Court of Appeals for the Federal Circuit have relaxed the requirements for filing an ITC complaint. Previously, patent owners generally needed to show significant domestic manufacturing tied to their patents. The new rulings have expanded that standard in important ways. One decision recognized that companies with smaller overall U.S. investments can still qualify, while another confirmed that businesses that manufacture overseas but maintain substantial U.S. operations in areas like sales, marketing, warehousing, and quality control can meet the domestic industry requirement. These changes have opened the door for a wider range of companies, including smaller businesses and those with global supply chains, to use the ITC as a tool for enforcing their patent rights.

Key Takeaway for Business Owners

This trend matters for businesses on both sides of the equation. If you own patents and compete against imported products that may be infringing, the ITC is now a more accessible venue for enforcement than it has been in the past. An exclusion order can be a game-changer for companies that have struggled to stop infringing imports through traditional litigation alone. On the other hand, if your business imports products or components from overseas, you should be aware that the risk of an ITC investigation has increased. A Section 337 complaint can result in your products being blocked at the border, which can disrupt your entire supply chain. Reviewing your products for potential patent conflicts and ensuring you have a strategy for responding to an ITC complaint are increasingly important steps for any business involved in international trade.

The ITC's expanding role in patent enforcement is a significant development for businesses of all sizes. Whether you are looking to protect your innovations or ensure your imports are not at risk, staying informed about this trend is essential.

Interested in learning how patent protection can help your business? Schedule a free consultation with Diorio IP Law Group to discuss your options.