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ARTICLE · 11 JULY 2017

R&D Based Domestic Industry Questions Remain

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Two recent decisions from the ITC appear to conflict with ALJ Lord's position, leaving the issue ripe for the Commission to directly address.

United StatesIntellectual Property

As noted in a previous post, ALJ Lord issued a domestic industry ruling, which the Commission later vacated without position, finding that R&D-based investments in plant and equipment or labor and capital cannot count towards satisfying subsections (A) or (B) of the domestic industry requirement, 19 U.S.C. § 1337 (a)(3). Two recent decisions from the ITC appear to conflict with ALJ Lord's position, leaving the issue ripe for the Commission to directly address.

Statutory Framework

The ITC has jurisdiction over cases involving "industr[ies] in the United States, relating to the articles protected by the patent, copyright, trademark, mask work, or design concerned, exists or is in the process of being established." 19 U.S.C. § 1337(a)(2). A complainant can meet this "domestic industry" requirement by establishing that it has made a: (A) significant investment in plant and equipment; (B) significant employment of labor or capital; or (C) substantial investment

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