Section 337 Terminations for Arbitration Subject to Appeal, Says Federal Circuit

The U.S. Court of Appeals for the Federal Circuit overturned an International Trade Commission decision to end a Section 337 patent investigation of infringement by LG so that the case could go to arbitration with patent holder InterDigital. LG had said it held a license for the patented technology at issue, and the commission found that a plausible basis for arbitration. Both the ITC and LG argued that the appeals court had no jurisdiction to hear the case, because termination for arbitration is not listed as subject to appeal under the governing statute, 19 USC 1337. But the appeals court found that termination of a Section 337 investigation for arbitration is in effect an appealable final determination, even though it isn’t enumerated in the statute. Turning to whether LG had grounds to request arbitration, the appeals court found that the portion of the agreement governing the license on 3G technology had expired, so LG had no right to assert a right to arbitration over the license.