Posts by: Erica Rothenberg

When It Comes to Domestic Industry’s Economic Prong, Numbers Speak Louder Than Words

Initial Determination on Violation of Section 337 and Recommended Determination on Remedy and Bond, Certain Radio Frequency Identification (“RFID”) Products and Components Thereof, ITC Inv. No. 337-TA-979 (June 22, 2017) (ALJ MaryJoan McNamara)

In a recent Initial Determination, Administrative Law Judge (“ALJ”) MaryJoan McNamara ruled against Complainant Neology, Inc., finding no violation on multiple grounds.  This post focuses on ALJ McNamara’s analysis of the economic prong of the domestic industry requirement.  Her decision is notable because of the number and diversity of economic prong theories Neology advanced, and the ALJ’s focus on the presence or absence of quantitative evidence supporting those theories, further cementing the effect of the Federal Circuit’s 2015 Lelo v. ITC decision.

Neology tried two patents: Nos. 8,325,044 (“the ’044 patent”) and 8,587,436 (“the ’436 patent).  Both were directed to RFID technology, with the ’044 patent focusing on RFID tags, and the ’436 patent focusing on RFID readers.  Respondents did not contest that Neology satisfied the economic prong for the ’044 patent.  Neology had manufactured millions of RFID tags at its 14,000-square-foot facility in California and invested significantly in employment there. READ MORE