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ITC Proves Useful Resource for Life Science Firms

By Ralph A. Mittelberger
October 07, 2003

The U.S. International Trade Commission (ITC)'s power to seal the country's borders against importation of products covered by U.S. patents makes this federal agency a powerful resource for patent holders. Still, many life sciences companies doing business in this country fail to utilize this quasi-judicial body to protect their pharmaceuticals, medical devices and other patented products.

The ITC's authority to protect companies active in the United States from unfair competition from abroad comes from '337 of the Tariff Act of 1930. To proceed under '337, there must be a 'domestic industry,' importation and an unfair method of competition or unfair act, such as patent infringement. Relief is even possible when imported products are not protected by patents, if they are made abroad through the use of patented processes.

Most ITC cases are completed in about a year, two to three times faster than cases tried in court. Moreover, the ITC's jurisdiction is based on imported articles, rather than personal jurisdiction over the infringer. As a result, the ITC and the U.S. Customs Service can prevent the continued importation of an infringing product even if its foreign manufacturer or distributor cannot be identified or subjected to the jurisdiction of the U.S. courts. By itself, '337 can yield as much relief as many companies need and can also be used in conjunction with court litigation.

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