U.S. opens patent probe into optical disc drives by Asian makers

The U.S. International Trade Commission (ITC) on Monday launched a probe into optical disc drives made by Asian companies including those of Japan after an American company filed a complaint alleging its patents had been infringed upon.

The products at issue are optical disc drives for products such as desktop and laptop computers, DVD and CD players, televisions, console gaming systems and other products containing such drives, said the U.S. trade panel in a statement.

Optical Devices LLC, a company based in the U.S. state of New Hampshire, filed a complaint on Sept. 3 with the ITC, claiming the optical devices made by Asian companies such as Nintendo, Panasonic, Samsung Electronics, LG Electronics, Toshiba Media Tek and their American entities have infringed upon its patents and violated the Section 337 of the Tariff Act of 1930. It requested the ITC to issue a limited exclusion order and to cease and desist orders against those products.

The investigation does not mean the ITC has made any decision on the merit of the case. Within 45 days, the body will set a target date for completing the investigation.

The investigation panel will issue a ban on importation of accused products should the complaint be approved, but during the subsequent 60-day review period, the Obama administration can veto the order.

Section 337 investigations focus on allegations of patent or registered trademark infringement, and also involve misappropriation of other aspects such as trade secrets, false advertising, and violation of the antitrust laws.

As it is believed to be quicker, cheaper and more practical to win the patent cases with the ITC than through courts, companies increasingly tap the ITC's authority on patent dispute cases to tramp down their competitors. In the 1990s, for instance, the commission filed fewer than a dozen Section 337 cases a year, but it did 55 cases on average from 2010 to 2012.