The U.S. International Trade Commission (ITC) provides firm and effective mechanisms for companies to protect their patents and preserve their market share. Even small companies with limited resources can utilize the ITC’s exclusion orders to prevent infringing imports. The recent Federal Circuit decision in favor of Ventria Bioscience shows that even small businesses can present an effective case for ITC protection.
What is the ITC, and how does it protect your Business from Patent Infringement?
The U.S. International Trade Commission (ITC) provides a very strong legal weapon for companies to deal with unfair competition, especially when it concerns imported goods that infringe U.S. patents. Through an exclusion order, the ITC has the ability to bar infringing goods from entering the U.S. market, providing patent owners a quick and efficient means of enforcement. For small- and mid-sized companies, this can be a critical tool for protecting innovation and leveling the playing field.
Role of the Ventria case in paving a path for Small Businesses
A recent case involving Ventria Bioscience Inc., a small biotech company, demonstrates how even a company with limited resources can utilize ITC protections. Ventria obtained an exclusion order against Wuhan Healthgen Biotechnology Corp., notwithstanding its relatively limited domestic investment.
The ITC determined that Ventria’s domestic activities were sufficient, thereby satisfying the “domestic industry” requirement based on a valuable precedent. In doing so, the ITC made it clear that the ITC does not impose a strict dollar threshold – instead, it is reasonable to assess the importance of the investment to the patent owner.
Is Your Business Qualified for ITC Patent Protection?
If your business is dealing with patent infringement from foreign competitors, the ITC could be a powerful remedy. The common misconception is that you need to be a large company to pursue an ITC case. In reality, even small businesses with limited but strategic investments in the U.S. can obtain ITC protection.
The important thing is showing that your investments in the U.S. are meaningful, even if they are limited. For example, the Ventria Bioscience case showed how functioning in a niche market can still satisfy the domestic industry component of the ITC’s requirement.
Importance of a Patent Attorney for ITC Cases
ITC cases raise a myriad of legal and procedural complexities. Successfully navigating these complexities and addressing the unique needs of an ITC investigation is unlikely without the assistance of a qualified patent attorney having extensive experience in patent litigation.
A qualified attorney can:
- Assess whether an ITC complaint is a viable option for your company
- Assist you in establishing that you meet the domestic industry requirement
- Handle the various demands of the complaint, discovery, and hearing stages
- Prepare for defenses by foreign respondents and scrutiny from government reviewers
How Small Businesses Can access the ITC in Patent Infringement Cases?
ITC patent investigations usually go more quickly than formal litigation in district courts and provide quicker relief for businesses suffering infringement by foreign competitors. For small businesses, there is no question that speed is especially important, as they have to stop the importation of infringing products before the damage is done.
Once you obtain an exclusion order from the ITC, you can protect your U.S. market share, maintain your competitive edge, and potentially unlock substantial revenue growth.
One useful example is Ventria Bioscience’s limited investment in the U.S market. Ventria made a relatively minor investment in its Optibumin product, but that was enough to satisfy the ITC’s domestic industry test, and therefore, it was able to achieve a favorable ruling and preservation of its market share by way of an exclusion order.
For small businesses, the ITC is not simply another option; it can be a competitive tool.
Frequently Asked Questions: ITC Patent Protection and Small Business Success
- What is the ITC, and how can it help protect my patents?
The U.S. International Trade Commission (ITC) is an independent federal agency that is tasked with investigating unfair trade practices, including patent infringement involving goods from abroad. The ITC can grant exclusion orders barring those products from entering the U.S.
A small business will often find that the remedies available at the ITC are both faster and much stronger than pursuing a patent infringement action in court.
- Can small businesses bring patent claims at the ITC?
Yes. The ITC is not just for large companies, and the recent case involving Ventria Bioscience, Inc. confirms that small businesses, even without considerable resources, can meet the domestic industry requirement and successfully proceed against foreign infringers.
- What must a small business invest to show “domestic industry”?
A small business does not have to prove extensive or massive manufacturing operations in the U.S. For example, a small business may make a substantial investment in U.S. operations with regard to product development, research, marketing, or licensing. The investment must be meaningful, but it may be a small investment if it is meaningful concerning one’s business.
- Why would I want a patent attorney for my ITC case?
ITC proceedings can be very complex and fast-paced. Having a knowledgeable patent attorney will lead you through all the phases from determining whether you have standing to gathering a legally viable case that complies with statutory and procedural protocols. When it comes to dealing with the ITC, having a patent attorney can make a difference in achieving a successful outcome.
- What remedies does the ITC have for patent infringement?
The ITC can issue exclusion orders and cease and desist orders which will stop the import or sale of infringing goods in the U.S. The remedies are both effective and timely, which makes the ITC a desirable forum for addressing the protection of a patent.
Seek guidance from a Patent Lawyer
Your innovations are the result of hard work, creativity, and vision. When they are threatened by infringement or challenged through invalidity proceedings, taking swift and strategic action is critical.
At Drishti Law, we are ready to stand by your side, helping you enforce your patent rights or defend your business against attacks. Our intellectual property law team works with you to build a strong plan focused on protecting what you’ve created and securing your position in the market.
Don’t wait until your ideas are at risk; take the first step today toward protecting your future.
If you have questions about handling patent infringement or defending against invalidity claims, contact Drishti Law at 773-234-1139 for a free consultation. We are here to guide you through every step of the process, working to protect your innovations and safeguard your rights under U.S. patent law.
Sahil Malhotra
Sahil Malhotra is an Intellectual Property Attorney, who founded Drishti (“vision”) law because of his vision in protecting dreams and ideas.
He provided individuals and small businesses with an opportunity to enhance their IP’s value by helping them register trademarks and successfully argue against office actions. In addition to his training and experience, he has been deeply involved in the multifaceted IP portfolio at UIC and continues to be associated with IP organizations and conferences.
To know more about Sahil Malhotra — Click Here
You may follow Sahil Malhotra on Facebook: Sahil Malhotra and on Instagram: @Sahil Malhotra