Goodlatte Urges ITC To Address Abuse of Section 337 Patent Review Process

House Judiciary Committee Chairman Bob Goodlatte, R-Va., urged the International Trade Commission Thursday to use its authority to take actions stakeholders recommended to address patent assertion entities' abuse of the ITC's process for evaluating Section 337 exclusion orders. PAEs take patent infringement cases that should be litigated in U.S. district courts and bring them to the ITC in a bid to force entities to pay licensing fees, Goodlatte said during a House IP Subcommittee hearing. Stakeholders recommended the ITC return to a previous evaluation standard that “does not allow legal expenses, airplane flights, and the like to satisfy the domestic industry requirement,” Goodlatte said. The ITC should apply the public interest test and the economic interest test at the beginning of a Section 337 review when determining claims consideration and the issuance of exclusion orders, Goodlatte said. The ITC should also use its public interest and economic interest analyses to articulate agency standards to “clarify which patent disputes should be adjudicated by the ITC and those which are more properly addressed by U.S. district courts,” Goodlatte said. House IP ranking member Jerry Nadler, D-N.Y., questioned whether Congress needs to act to curb PAE abuses of the ITC process because the agency is already beginning to address the issue.