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International News -> In North America

U.S. launches section 337 investigation into ZTE and other electronics companies

Originally by: Zheng Qihang and Gao Pan
First published: 2014-01-18 10:32:21

On January 17, the United States International Trade Commission (USITC) announced that it has launched a section 337 investigation into mobile phones and tablets sold in the United States by ZTE, Nokia, Samsung, and Sony.

The USITC issued a statement saying that on December 18, 2013, Pragmatus Mobile of Virginia, U.S. filed a complaint, which accused the import and sales of such U.S. mobile phones and tablets in the U.S. had infringed on the company's patents. It then requested the USITC to launch a section 337 investigation, which in turn released a limited exclusion order and cease-and-desist orders.

The so-named "section 337 investigation" was first coined in the U.S. based on section 337 of the "Tariff Act of 1930 and later it experienced several major revisions. According to the provision, the USITC has the power to investigate complaints related to the infringement of patents and trademarks. In addition, it has the power to conduct investigations involving the theft of trade secrets, infringement on the packaging of goods, counterfeiting or false advertising, and other such content. The section 337 investigation not only supervises international trade, but also controls interstate commerce in the U.S. Therefore, when enforcing the law, it not only targets foreign enterprises, but also involves U.S. companies.

According to procedure, within 45 days after the institution of the section 337 investigation by the USITC, the commission will set a target date for completing its investigation, and it will complete its investigation as soon as possible. Cases usually require a ruling to be determined within a year. If the companies involved have been found guilty of section 337, the USITC will issue an exclusion order and cease-and-desist orders against the relevant products. This means that the products involved will be completely disqualified from entering the U.S. market.

The Ministry of Commerce for the People’s Republic of China has repeatedly stated that it hopes the U.S. government will abide by its commitment against trade protectionism and jointly safeguard a free, open, and fair international trade environment with a more rational approach to properly handle trading frictions.

Source: Xinhua News Agency
Senior Editor: Gu Xiaojuan


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