Global law firm White & Case LLP successfully defended Chimei InnoLux Corporation, one of Taiwan’s leading makers of flat panels and liquid-crystal displays (LCDs) used in computer and television screens, in a Section 337 Investigation brought before the US International Trade Commission (ITC).
Thomson Licensing SAS and Thomson Licensing LLC asserted the LCDs and other products of Chimei InnoLux, and several other companies, infringed five of Thomson’s US patents in October 2010 at the ITC.
In its Final Determination issued after the trial, the ITC found that Chimei InnoLux did not violate Section 337 of the Tariff Act of 1930 with respect to all five of the patents that had been asserted against it. The ITC found that, while a fifth patent was not infringed, further proceedings were warranted to determine whether it was also invalid. As a result of the ITC’s determination, the investigation will be terminated on the four patents with further proceedings possible on the fifth.
"Chimei InnoLox won non-infringement findings on all of the patents. We were also proved that all asserted claims of two of the patents and a majority of a third patent were anticipated and obvious in view of the prior art,” said White & Case partner Warren Heit who served as lead trial counsel for Chimei InnoLux. “This marks a complete victory for Chimei at the ITC. It also represents an important precedent concerning what expenses non-practicing entities can count toward the establishment of a domestic industry.”
The ITC ruled that the cost of bringing a Section 337 investigation does not count in the domestic industry analysis, and the ITC reaffirmed that mere ownership costs are also not included. Finally, the ITC held that only a portion of the expenses incurred in a licensing program can be attributed to the asserted patents.
Warren Heit led the international litigation team with assistance from attorneys from White & Case’s Silicon Valley, Washington D.C. and Beijing offices.
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