USITC Institutes Section 337 Investigation of Certain Subsea Telecommunication Systems and Components Thereof

January 19, 2018
News Release 18-014
Inv. No. 337-TA-1098
Contact: Peg O'Laughlin, 202-205-1819
USITC Institutes Section 337 Investigation of Certain Subsea Telecommunication Systems and Components Thereof

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain subsea telecommunication systems and components thereof.  The products at issue in the investigation are systems and components of long-haul subsea telecommunication systems, including terminals, also known as dry plants.

The investigation is based on a complaint filed by Neptune Subsea Acquisitions Ltd. and Neptune Subsea IP Ltd., both of Harold Wood, Essex, the United Kingdom, and Xtera, Inc., of Allen, TX, on December 22, 2017.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain subsea telecommunication systems and components thereof that infringe patents asserted by the complainants.  The complainants request that the USITC issue a limited exclusion order and a cease and desist order.

The USITC has identified the following as respondents in this investigation:

Nokia Corporation of Espoo, Finland;
Nokia Solutions and Networks B.V. of Hoofddorp, The Netherlands;
Nokia Solutions and Networks Oy of Espoo, Finland;
Alcatel-Lucent Submarine Networks SAS of Boulogne Billancourt, France;
Nokia Solutions and Networks US LLC of Phoenix, AZ;
NEC Corporation of Tokyo, Japan;
NEC Networks & System Integration Corporation of Tokyo, Japan; and
NEC Corporation of America of Irving, TX.

By instituting this investigation (337-TA-1098), the USITC has not yet made any decision on the merits of the case.  The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing.  The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The USITC will make a final determination in the investigation at the earliest practicable time.  Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation.  USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

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