## Facts

- In January 1983, Apple Computer Inc. filed a complaint at the U.S. International Trade Commission (ITC) under Section 337 of the Tariff Act of 1930, challenging the importation and sale of “certain personal computers and components thereof.”
- Apple alleged that numerous manufacturers and related firms were importing into the United States personal computers and components that infringed two U.S. patents and two U.S. copyright registrations owned by Apple.
- Apple’s asserted intellectual property covered elements described as essential to the operation of a personal computer, including ROM-related software; one identified component was the “Autostart ROM” program used each time the computer operated.
- Apple contended that respondents incorporated these protected elements into lower-priced computers that competed directly with Apple’s products.
- The ITC instituted Investigation No. 337-TA-140 in 1983, naming multiple respondents involved in manufacturing, importing, and distributing the accused computers and components.
- In 1983, an Administrative Law Judge (ALJ) issued an initial determination finding a violation of Section 337.
- In 1984, the Commission reviewed the ALJ’s initial determination and issued Commission action in the investigation.

## Issues

1. Whether the importation and sale of respondents’ personal computers and components violated Section 337 because the articles infringed Apple’s asserted U.S. patent claims and copyrighted ROM/software.
2. Whether the accused importation and sales had the required effect or tendency to injure or threaten injury to a domestic industry in the United States for purposes of Section 337.
3. What remedial orders, if any, the ITC should issue upon finding a Section 337 violation involving infringing personal computers and components.

## Decision

- The ALJ found a violation of Section 337 based on Apple’s allegations of infringement involving imported personal computers and components.
- On review in 1984, the Commission addressed the ALJ’s initial determination and proceeded on the basis that the investigation concerned IP-based “unfair acts” tied to importation of personal computers and components.
- Consistent with Section 337 practice in IP cases and public summaries of the investigation’s outcome, the Commission’s action resulted in remedial relief designed to stop unlawful importation and related domestic commercial activity involving infringing articles (including exclusionary relief and related orders directed to certain respondents).

## Legal Principles

- Section 337 prohibits “[u]nfair methods of competition and unfair acts” in the importation of articles (or their sale after importation) when those acts have the effect or tendency to destroy or substantially injure a U.S. industry, or to restrain or monopolize trade and commerce in the United States.
- Patent infringement and copyright infringement tied to imported products may qualify as “unfair acts” for Section 337 purposes.
- A complainant must show both (a) an unfair act (such as infringement) connected to imported articles and (b) the statutory domestic-industry requirement (injury, threat of injury, or other qualifying domestic-industry showing required under Section 337 as applied).
- When a Section 337 violation is found, the ITC may issue prospective remedies aimed at importation and domestic commercial conduct, including exclusion orders barring entry of infringing articles and cease-and-desist orders directed to parties maintaining U.S. inventories or engaging in sales activities.

## Conclusion

In Investigation No. 337-TA-140, Apple used Section 337 to challenge imported personal-computer “clone” products and components that allegedly copied Apple’s patented hardware-related technology and copyrighted ROM/software elements, including an Autostart ROM program used during operation. After an ALJ found a Section 337 violation in 1983, the Commission reviewed that determination in 1984 and issued Commission action providing relief intended to prevent continued importation and commercialization of infringing personal computers and components in the United States.


In re Certain Personal Computers and Components Thereof, Inv. No. 337-TA-140 (1984)