Export Compliance Daily is a Warren News publication.

ITC Files Motion for en Banc Rehearing in Data Blocking Case

In a case involving electronic transfer of protected information, the International Trade Commission filed a petition Wednesday for rehearing en banc with the U.S. Court of Appeals for the Federal Circuit of its case against corrective orthodontic device manufacturer ClearCorrect.…

Sign up for a free preview to unlock the rest of this article

Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

The initial deadline for a rehearing petition was moved from December to late January upon request from ITC Attorney Sidney Rosenzweig (see 1512090014). In November, a three-judge panel of the Federal Circuit ruled 2-1 in favor of ClearCorrect, saying the ITC doesn't have the jurisdiction to block the international electronic transfer of patent-infringing data. The court's decision overturned an initial ITC decision prohibiting ClearCorrect's affiliate in Pakistan from transmitting digital molds of patients' teeth to the company's headquarters in Houston, due to the alleged infringement on patents held by competitor Align Technology. ClearCorrect attorney Michael Myers told us after the Federal Circuit's ruling that he "wouldn't be surprised" if the case were eventually heard en banc (see 1511100047). In its petition, the commission argued the appeal "presents a precedent-setting question of exceptional importance" -- meaning whether the ITC's abilities to block the importation of infringing products applies only to physical products, or to digital information as well. The agency also said the three-judge panel "erred" in its decision that the world "articles" in the commission's congressionally mandated responsibilities means only material items.