Avoiding Supply Chain Disruption in International Trade Commission Section 337 Investigations

Companies are investing in securing supply chains to protect against disruptions caused by economic, political, and pandemic factors. However, there is another potential threat to supply chains: exclusion orders issued by the US International Trade Commission (ITC). These orders can prevent companies from supplying or receiving goods. The ITC enforces Section 337 of the 1930 Tariff Act, which prohibits the importation of goods that infringe patents, trademarks, or copyrights. If the ITC finds a violation, it can issue exclusion orders that apply to specific companies or all importers of infringing goods. However, the ITC can modify exclusion orders based on public interest factors. Both named respondents and downstream customers can participate in the process and argue for the protection of the supply chain.

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Frequently Asked Questions

1. What are International Trade Commission Section 337 Investigations?

Section 337 investigations are conducted by the U.S. International Trade Commission (USITC) to address allegations of unfair trade practices, such as patent infringement and trademark infringement. These investigations can lead to the exclusion of infringing goods from the U.S. market.

2. How can companies avoid supply chain disruption during Section 337 investigations?

Companies can avoid supply chain disruptions by conducting thorough due diligence on their supply chains to ensure no intellectual property rights are being infringed. This includes monitoring suppliers and implementing compliance programs to safeguard against the use of counterfeit or infringing products.

3. Is the Office of Unfair Import Investigations (OUII) available to review draft Section 337 complaints during COVID-19-related disruptions?

According to the USITC's Frequently Asked Questions page, OUII is still available to review draft section 337 complaints during this time. Companies should check with USITC for the latest information and guidance.

4. Why is it important to consider antitrust laws in relation to Section 337 investigations?

It's important because antitrust laws and regulations can impact corporate strategies and behavior. Companies should ensure that their measures to protect their supply chains do not give rise to antitrust concerns, such as creating unfair competition or monopolistic practices.

5. How does the U.S. Foreign Corrupt Practices Act (FCPA) relate to supply chain disruption and Section 337 investigations?

The FCPA prohibits corrupt practices in international business, such as bribery of foreign officials. Companies must ensure that any international supply chain activities, especially those that involve government interaction, comply with FCPA to avoid legal trouble and potential supply chain disruptions.

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