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New IPR Import Restrictions Sought on ATMs and Point of Sale Devices

Friday, May 08, 2015
Sandler, Travis & Rosenberg Trade Report

The International Trade Commission received May 4 on behalf of Global Cash Access Inc. a petition requesting that it institute an investigation to determine whether the importation, sale for importation and sale within the U.S. after importation of certain automatic teller machines and point of sale devices and associated software thereof are violating Section 337 of the 1930 Tariff Act. The proposed respondents are located in Canada and the U.S.

Section 337 investigations primarily involve claims regarding intellectual property rights violations by imported goods, including the infringement of patents, trademarks and copyrights. Other forms of unfair competition involving imported products, such as misappropriation of trade secrets or trade dress and false advertising, may also be asserted. The primary remedy available in Section 337 investigations is an exclusion order that directs U.S. Customs and Border Protection to stop infringing imports from entering the U.S. In addition, the ITC may issue cease and desist orders against named importers and other persons engaged in unfair acts that violate Section 337, including selling infringing imported articles out of U.S. inventory.

The ITC is requesting comments no later than May 18 on any public interest issues raised by this complaint. Comments should address whether the issuance of a permanent limited exclusion order, cease and desist order and bond on the respondents’ alleged infringing articles during the 60-day presidential review period would affect the public health and welfare in the U.S., competitive conditions in the U.S. economy, the production of like or directly competitive articles in the U.S., or U.S. consumers. In particular, the ITC is interested in comments that:

- explain how the articles potentially subject to the orders are used in the U.S.;

- identify any public health, safety or welfare concerns in the U.S. relating to the potential orders;

- identify like or directly competitive articles that the complainant, its licensees or third parties make in the U.S. that could replace the subject articles if they were to be excluded;

- indicate whether the complainant, its licensees and/or third-party suppliers have the capacity to replace the volume of articles potentially subject to the requested orders within a commercially reasonable time; and

- explain how the requested orders would impact U.S. consumers.

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