U.S. opens patent probe into mobile device holders

The U.S. International Trade Commission (USITC) on Monday initiated a patent investigation of certain mobile device holders and components from 35 companies based in Chinese mainland, Hong Kong and the United States.

The investigation is based on a complaint filed by Nite Ize, Inc., based in the western U.S. state of Colorado in October, 2016, alleging that those companies had infringed upon its patents related to above products and violated the Section 337 of the Tariff Act of 1930, the bipartisan trade panel said in a statement.

The company requested the USITC to issue a general exclusion order, or in the alternative, a limited exclusion order, and cease and desist orders against those products.

Among the 35 companies in list of the investigation, 26 companies are from the Chinese mainland, three from Hong Kong and six from the United States.

The investigation does not mean the panel has made any decision on the merits of the case. Within 45 days, the panel will set a target date for completing the investigation. Should the complaint be approved, the panel will issue an import ban on infringing products and bar the sale of products within the United States.

Section 337 investigations focus on allegations of patent or registered trademark infringement, and also involve misappropriation of aspects such as trade secrets, false advertising, and violation of the antitrust laws.

As a quicker, cheaper and more practical way to win the patent cases in the USITC than in the U.S. courts, American companies increasingly tap the USITC's authority on patent cases to tamp down their competitors.