US opens patent probe into domestic, foreign tires makers

The U.S. International Trade Commission (ITC) launched Monday a probe into tires made in U.S., China and Thailand after a Japanese company filed a complaint alleging its patents had been infringed on.

The products at issue are tires with certain tread designs and sidewall designs, said the bipartisan trade panel in a statement.

Japanese Toyo Tire and Rubber Company and its U.S. entity filed a complaint on Aug.14 with the ITC, claiming the tires made by 14 U.S., seven Chinese companies and one Thai firm have infringed upon its patents and violated the Section 337 of the Tariff Act of 1930. It thus requested the ITC to issue a limited exclusion order and to cease and desist orders against those products.

The investigation does not mean the ITC has made any decision on the merits of the case. Within 45 days, the body will set a target date for completing the investigation.

Should the complaint be approved, the panel will issue a ban on importation of accused products, but during the subsequent 60-day review period, the Obama administration can veto the order.

Section 337 investigations focus on allegations of patent or registered trademark infringement, and also involve misappropriation of aspects such as trade secrets, false advertising, and violation of the antitrust laws.

As it is quicker, cheaper and more practical to win the patent cases in the ITC than in the courts, companies increasingly tap the ITC's authority on patent cases to tamp down their competitors. In the 1990s, the commission filed fewer than a dozen Section 337 cases a year. From 2010 to 2012, it averaged 55.