Section 337 Investigations at the U.S. International Trade Commission:
A Powerful Weapon Semiconductor Companies Can Use to Block the Importation of Unfair Imports
Gary M. Hnath, Partner, Mayer Brown LLP
Semiconductors have been at the heart of most technological progress in the last few decades.
The semiconductor market is highly competitive and characterized by rapid technological change.
Manufacturers of semiconductors and fabrication equipment seeking to protect their intellectual
property (IP) and prevent competition from unfair imports have a powerful remedy at
their disposal which many do not even know about—Section 337 investigations at the U.S.
International Trade Commission (ITC).
Section 337 prevents unfair acts in the importation of articles into the United States.
The ITC has the power to issue exclusion orders which are enforced by U.S. Customs and prevent
unfair imports from entering the United States. Indeed, for reasons discussed below, Section
337 is ideally suited to provide fast and effective relief in cases involving semiconductors. This
article will describe the types of cases that can be brought under the statute, the types of remedies
available, how a Section 337 proceeding works, and the advantages of using Section 337 vs.
other remedies to block unfair imports in cases involving semiconductors.
Types of Cases That Can Be Brought under Section 337
Section 337 of the Tariff Act of 1930 is a statute which prohibits unfair acts in the importation
of articles into the United States. Section 337 proceedings take place before the U.S. ITC in
Washington, D.C. As the following graph shows, the number of Section 337 complaints filed has
more than doubled in the past five years and continues to rise rapidly.
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