Merchant & Gould Wins Complete Defense Win Before the International Trade Commission, Protecting Consumers’ Access to Replacement Automotive Lamps
TYC is a supplier of automotive parts, including lighting products such as aftermarket headlights and taillights that are used in collision repairs. Merchant & Gould and its co-counsel Holland Law LLP were retained to defend TYC against twin complaints filed with the U.S. International Trade Commission (ITC) by automotive manufacturers, which asserted a combined 41 design patents against TYC’s aftermarket headlights and taillights.
Case Summary
This was a David v. Goliath battle. The complainants attempted to overwhelm TYC and its customer by asserting dozens of patents in parallel investigations before the ITC. The complainants sought orders from the ITC that would have stopped all imports and domestic sales of our clients’ accused products. Although ITC investigations are typically fast-paced, the administrative law judge (ALJ) overseeing the investigations set an accelerated schedule as part of the ITC’s early disposition pilot program and ordered an early evidentiary hearing on whether the complainants satisfied the ITC’s domestic industry requirement. To date, these investigations are the only ones for which the pilot program has been used.
Strategy
Drawing on its extensive experience litigating before the ITC, Merchant identified numerous flaws in the complainants’ domestic industry evidence and analysis and developed a fulsome record supporting TYC’s positions. Following the ALJ’s initial determination, Merchant obtained full review by the ITC of the domestic industry issue and submitted comprehensive briefing.
Solution
After considerable deliberations, the ITC agreed with Merchant and concluded that the complainants failed to satisfy the domestic industry requirement as to all 41 asserted patents. The ITC therefore terminated the investigations with findings of no violation by TYC, enabling TYC’s accused lamps to remain available to U.S. consumers, securing their access to high-value replacement parts.
