Schweikert, Beyer Introduce Bipartisan Legislation to Refocus ITC on Protecting Genuine American Industry

WASHINGTON — This week, Rep. David Schweikert, R-Ariz., and Rep. Don Beyer, D-Va., introduced the Advancing American Innovation Act, bipartisan legislation to reform Section 337 of the Tariff Act of 1930 and ensure the U.S. International Trade Commission’s resources are focused on protecting genuine domestic industries and safeguarding public health and welfare and the U.S. economy. The legislation strengthens the domestic industry requirement so that complainants must show their licensing activity actually leads to products made and sold in the United States. It requires the ITC to consider the public interest, including public health and welfare and competitive conditions in the U.S. economy, before excluding products from the American market. The bill also creates an expedited 100-day process for resolving dispositive issues early in an investigation and requires complainants to disclose the third party funders financing patent cases at the agency. “Section 337 exists to protect companies that make things in this country,” Schweikert said. “Right now, a complainant with hidden financial backers can ask a trade agency to block products from the American market without ever showing an industry here at home. If you want the federal government to keep products out of the country on your behalf, you should be able to show what you build here and who is financing your case. Any legitimate patent holder can do both.” “The ITC is a critical forum that was created to shield U.S. businesses from unfair foreign competition,” said Rep. Beyer. “It is a powerful tool but unfortunately it has been misused by patent licensing entities who target American companies with needless and unjustified litigation. This legislation would help refocus the Commission on its core mission and protect the U.S. economy and American jobs.” “The ITC Modernization Alliance applauds Representatives David Schweikert (R-AZ) and Don Beyer (D-VA) for introducing the Advancing American Innovation Act,” said Sarah Beth Jansen, executive director of the ITC Modernization Alliance. “This bipartisan bill provides targeted reforms to rebalance the ITC’s patent process, including much needed transparency of the parties using our trade agency. We are grateful for the leadership of Representatives Schweikert and Beyer and urge Congress to move this common-sense legislation forward.” Background on the Advancing American Innovation Act: Clarifies that licensing activity satisfies the domestic industry requirement under Section 337 only when it leads to the adoption and development of products incorporating the patent for sale in the United States. Requires that any person relied upon to establish a domestic industry join the complaint under oath. Directs the ITC to identify dispositive issues at the outset of an investigation and requires an initial determination on those issues within 100 days. Requires the Commission to weigh the effect of an exclusion order on public health and welfare, the U.S. economy, competitive conditions and American consumers before barring products from entry. Requires complainants in patent cases to disclose the identity of any third party litigation funder and file funding agreements with the Commission, with sanctions for noncompliance. The amendments would apply to complaints filed under Section 337 on or after the date of enactment. Back to News