The U.S. International Trade Commission (ITC) initiated its first investigation under the 100-day pilot program.
Purpose: Early determination of a potentially case-dispositive issue.
Investigation: Certain Audio Processing Hardware and Software and Products Containing Same, ITC Inv. No. 337-TA-949.
Notice of Investigation issued: March 12, 2015.
Contents
Complaint Details
Filed by Andrea Electronics Corporation (Feb. 9, 2015).
Allegations:
Unlawful importation of:
Microphones and microphone arrays
Audio codecs
Audio processing software
PCs (laptops, desktops, notebooks, tablets)
Named Respondents:
Acer
ASUSTek
Dell
Hewlett Packard
Lenovo
Toshiba
Realtek Semiconductor
Focus of the 100-Day Pilot Program
The Commission directed the ALJ to:
Conduct an early evidentiary hearing.
Determine whether Andrea has standing to assert the five patents.
First time the pilot program was used to examine standing.
Pilot program originally created in June 2013.
Goal:
Reduce litigation costs.
Resolve potentially dispositive issues early.
ALJ must:
Expedite discovery.
Issue an Initial Determination (ID) within 100 days of institution.
Respondents’ Standing Challenge
Hewlett Packard and Dell requested use of the pilot program.
Relied on Andrea’s SEC filings.
Alleged:
Andrea did not retain full ownership of the patents.
Substantial ownership interest assigned to an investment firm.
Patents held in escrow as collateral.
Andrea obligated to pursue patent monetization.
Andrea responded:
Agreements cited by Respondents were modified.
Alleged arrangements are “inoperative.”
Procedural Impact
ALJ Thomas B. Pender assigned to the case.
Early Initial Determination (ID) due within 100 days (expected mid-June).
If ALJ finds no standing:
Investigation will be stayed unless Commission orders otherwise.
If standing is upheld:
Investigation proceeds without delay toward final determination.
Key Takeaways
ITC is using the 100-day pilot program to:
Address threshold issues early.
Potentially dispose of cases quickly.
Standing challenges can be case-dispositive.
The program reflects ITC’s effort to streamline Section 337 investigations.
