ITC: No Issue Preclusion Where Asserted Patent Found Unpatentable In IPR

On August 23, 2016, the International Trade Commission ("ITC") issued the public version of its Final Opinion in Certain Three-Dimensional Cinema Systems and Components Thereof, Inv. No. 337-TA-939, clarifying the effect of Inter Partes Review (IPR) proceedings on Section 337 Investigations. As noted in our July 2016 Client Alert, the ITC issued, but suspended enforcement of, a limited exclusion order for products that infringe a patent previously found unpatentable by the PTAB in a final IPR decision. The Commission's Opinion now provides the rationale for that decision. The ITC holds that a final IPR decision does not have preclusive effect in a Section 337 Investigation. Furthermore, under the circumstances of this particular case, the ITC decided to exercise its broad discretion to suspend enforcement of the remedial orders with respect to the patent adjudicated by the PTAB.