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<i>En Banc</i> Federal Circuit Revives Section 337 Induced Infringement
The Federal Circuit, in Suprema, Inc. v. Int'l Trade Comm'n, No. 2012-1170, 2015 WL 4716604 (Aug. 10, 2015), overturned a 2013 divided panel decision and held that a Section 337 violation based on induced infringement is viable where the underlying direct infringement occurs after importation. The Federal Circuit, sitting en banc, performed a Chevron analysis and held that it was reasonable for the International Trade Commission (ITC) to interpret the phrase “articles that ' infringe” within 19 U.S.C. '1337(a)(1)(B)(i) to include goods that, after importation, were used to directly infringe by an importer at the inducement of a seller.
Background
Complainant Cross Match Technologies, Inc. is a domestic company that manufactures fingerprint scanners that it supplies to both the U.S. government and private industry, and is the assignee of several patents related to fingerprint imaging systems. In 2010, Cross Match filed a complaint against Suprema, Inc. and Mentalix, Inc. in the ITC, alleging violations of Section 337 based on the importation of goods that infringe its patents. Suprema is a Korean company that makes and imports fingerprint scanners and software development kits that allow its customers to create custom software to operate the scanners. Suprema also sells scanners to Mentalix, which imports Suprema's scanners into the U.S., integrates custom software that utilizes Suprema's software development kit, and sells the scanners along with the software.
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