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Explore the latest in patent, trademark, and copyright cases on the Merchant & Gould LLP blog. Stay informed with expert insights on intellectual property law updates.

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Last week, the U.S. Court of Appeals for the Federal Circuit issued a precedential opinion in <a href="https://cafc.uscourts.gov/opinions-orders/22-2006.OPINION.8-28-2024_2375118.pdf"><em>Koki Holdings America Ltd. v. ITC</em>, No. 2022-2006 (Aug. 28, 2024)</a>, dismissing an appeal for lack of standing.

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In 2017, the ITC instituted an investigation to determine whether Koki was violating Section 337 by importing gas spring nailer products that allegedly infringed Kyocera’s patents. The ITC found that Koki’s products infringed and issued an exclusion order. On appeal, the Federal Circuit reversed two claim construction rulings and determined that the ITC abused its discretion by admitting unqualified expert testimony. The Federal Circuit vacated and remanded the ITC proceeding.

On remand, Kyocera moved to terminate the investigation by voluntarily withdrawing its complaint. The ITC granted Kyocera’s motion and terminated the investigation over Koki’s opposition. Koki appealed, arguing that the ITC lacked statutory authority to terminate the investigation.

To establish standing for its appeal, Koki argued it was injured by the termination of the investigation because it lost the benefit of the preclusive effect of an ITC determination of noninfringement. Specifically, Koki suggested that because of the termination Kyocera is free to refile its complaint before the ITC. The Federal Circuit rejected this argument. The Court noted that Kyocera had provided Koki with a covenant not to sue and explained that this covenant not to sue eliminated the controversy between the parties alleged by Koki. The Court dismissed the appeal, finding that Koki failed to establish an injury in fact sufficient to confer standing.

CAFC Holds ITC Respondent Lacks Standing to Appeal Termination of ITC Investigation

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