Federal Circuit Broadens ITC Economic Prong

In the recent decision of Lashify, Inc. v. International Trade Commission, the United States Court of Appeals for the Federal Circuit rejected the long-standing approach concerning the interpretation of the domestic-industry requirement under Section 337 of the Tariff Act of 1930. The complainant, an American company importing eyelash extensions from international manufacturers, which alleged that certain other importers were infringing on its patents.

The central legal issue in this case revolved around the interpretation of the "economic prong" of the domestic-industry requirement under 19 U.S.C. § 1337(a)(3)(B). Specifically, the panel examined whether significant employment of labor or capital related to sales, marketing, warehousing, quality control, and distribution could satisfy the economic prong, even in the absence of domestic manufacturing.