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ARTICLE · 12 NOVEMBER 2015

Split Federal Circuit Panel Curtails ITC's Ability To Regulate Electronic Transmission of Data

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This ruling is likely to be well received by many companies who heavily rely on cross-border electronic transmissions in today's information-age economy; however, because a petition for en banc review is expected, caution is still warranted.

United StatesIntellectual Property
Andrew Thomases
Andrew Thomases
Matthew Rizzolo
Matthew Rizzolo
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On November 10, 2015, a split panel of the Federal Circuit issued a decision in ClearCorrect Operating, LLC v. Int'l Trade Comm'n (No. 2014-1527), curtailing the jurisdiction of the U.S. International Trade Commission ("ITC") in investigations under Section 1337 of the Tariff Act of 1930, as amended, ("Section 337"). In an opinion authored by Chief Judge Prost, the court held that Section 337 does not vest the ITC with authority to investigate unfair acts or unfair methods of competition in situations involving only electronic transmissions of data, as opposed to those involving the importation of "material things." This ruling is likely to be well received by many companies who heavily rely on cross-border electronic transmissions in today's information-age economy; however, because a petition for en banc review is expected, caution is still warranted.  

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