Section 337 refers to Section 337 of the Tariff Act of 1930 (codified at 19 U.S.C. § 1337), a U.S. trade statute that authorizes the U.S. International Trade Commission (USITC) to investigate and block imports that involve unfair acts or unfair methods of competition. In practice, the overwhelming majority of Section 337 investigations today involve allegations of patent infringement, though the statute also covers trademark infringement, trade secret misappropriation, copyright violations, and other unfair practices tied to imported goods.
A complainant—typically a U.S.-based rights holder, though domestic industry status is the legal test rather than nationality—files a complaint with the USITC. If the Commission institutes an investigation, an administrative law judge conducts an expedited proceeding, usually concluding within 16–18 months. The principal remedies are exclusion orders, enforced by U.S. Customs and Border Protection to bar infringing articles at the border, and cease and desist orders against domestic respondents holding inventory. Exclusion orders can be limited (targeting named respondents) or general (covering all sources of the infringing product).
Section 337 is attractive to complainants because it offers speed, in rem border remedies, and no requirement to prove monetary damages—but it does not award damages, which remain the province of district court litigation. Respondents often face parallel proceedings in federal court and at the ITC.
The statute has drawn international friction. In United States – Section 337 of the Tariff Act of 1930 (GATT Panel Report, 1989, L/6439), a GATT panel found that aspects of the procedure discriminated against imported products in violation of GATT Article III:4 (national treatment), prompting U.S. amendments in the Omnibus Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act of 1994. Section 337 remains a flashpoint in U.S.–China technology disputes, with Chinese electronics, semiconductor, and telecom firms frequently named as respondents.
Example
In 2023, the USITC issued a limited exclusion order under Section 337 against certain Apple Watch models after finding they infringed pulse-oximetry patents held by Masimo.
Frequently asked questions
Section 337 cases are heard at the USITC, conclude faster (typically 16–18 months), and yield import exclusion orders rather than monetary damages. Many complainants run ITC and district court cases in parallel.
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