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Abstract

337 of the Tariff Act of 1930 (“Section 337”) is one of the statutes that prohibit unfair trade or unfair competition in importation, and it aims at protecting intellectual property at the United States borders. Because of the international impacts of Section 337 and the injunctive nature of its remedies, the application of the statute has profound impacts on the trade between U.S. and other countries.

China is a country that has enormous trade with the U.S and imports large amounts of goods to the U.S. each year. Moreover, the weak intellectual property protection in China has been a serious concern for U.S. companies and governments, thus Section 337 becomes an important tool for those companies to block Chinese products which allegedly infringe U.S. intellectual property, especially patent rights.

This Article will discuss Section 337 and its impacts on patents in China. Part I provides an overview of Section 337, which describes its primary goal, mechanisms, and several distinctive features, such as the expedited proceeding and injunctive remedies. Part II discusses the possibility of bias for ITC in its Section 337 investigations. Relevant data will be provided for the discussion. Part III gives a brief introduction of patent system in China. Part IV discusses the recent “patent boom” in China and discusses whether the high patent quantity leads to high patent quality in China. Part V offers some suggestions to China in responding to Section 337 investigations initiated by the U.S.

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