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22 January 2018Patents

USITC launches probe into subsea telecommunication systems

The US International Trade Commission (ITC) has launched an investigation into communications company Nokia and Japanese IT services provider NEC Corporation over certain subsea telecoms systems.

The investigation was launched after US-based Xtera and UK-based Neptune Subsea Acquisitions and Neptune Subsea IP alleged violations of section 337 of the Tariff Act of 1930 in a complaint. The two Neptune companies are subsidiaries of a company that purchased Xtera’s assets last year.

The complainants alleged that certain subsea telecoms systems and components are infringing their patents, which cover different transmission systems, or land terminals.

Xtera and Neptune have requested a limited exclusion order and a cease-and-desist order against the respondents.

The respondents, which include international divisions of Nokia and NEC Corporation, argued that the products Xtera is seeking to exclude are “essential to the operation of submarine telecoms systems”.

Nokia and NEC alleged that Xtera would be unable to deliver competitive products if the respondents’ products were excluded, and that the exclusion of the allegedly infringing products would have “an adverse effect on public health and welfare”.

An ITC administrative law judge will be assigned to the case and will determine whether section 337 has been violated.

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