Legal Framework

Along with the special benefits it provides for qualified domestic parties, the statute also imposes certain limitations. First, the only remedies provided (discussed in greater detail below) are equitable in nature - general or specific exclusion orders or cease and desist orders.

Section 337 is administered by the United States International Trade Commission, an independent, quasi-judicial agency, whose six Commissioners serve nine-year terms

As indicated above, Section 337 investigations are administrative, not judicial, proceedings. The advantage of these administrative proceedings is that they are narrowly focused and highly condensed. In general, Section 337 investigations are completed within 12-18 months from the date of initiation.

The reason Section 337 proceedings are so attractive to domestic producers and so threatening to United States importers and foreign producers is the severe remedies that can be obtained.

The increasing number of Section 337 investigations and affirmative determinations by the Commission and the possibility that downstream products will be included indicate that foreign producers and importers should monitor Section 337 proceedings to keep informed of potential disruptions to trade that may result if it is determined that an important part or component infringes a United States patent.

The final frequently invoked United States trade remedy is Section 301. This trade remedy is famous around the world - foreign businesspeople who may know nothing else about trade remedies will generally have heard of Section 301.

Fundamentally, Section 301 proceedings involve political pressure and policy objectives more than law and facts. United States companies pursue Section 301 cases when they want the United States Government through the use of threatened sanctions - to help the company or industry achieve some objective in relation to foreign rivals.

Section 301 provides a rather simple procedural framework. If a private interest files a Section 301 petition, USTR may accept or reject the petition.

10 11 12 13 14 15 16 17