USITC INSTITUTES SECTION 337 INVESTIGATION OF CERTAIN PASSIVE OPTICAL NETWORK EQUIPMENT

The U.S. International Trade Commission (USITC) voted to institute an investigation of certain passive optical network equipment. The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a complaint filed by Optimum Communications Services, Inc., of Jersey City, NJ, on November 14, 2023; amended on November 22, 2023; and supplemented on November 22, November 30, and December 11, 2023. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain passive optical network equipment that infringe complainant’s patents. The complainant requests that the USITC issue a permanent general exclusion order and permanent cease and desist orders. 

The USITC has identified the following respondents in this investigation:

  • Hangzhou Softel Optic Co., Ltd., of Zhejiang, China;

  • Hangzhou DAYTAI Network Technologies Co., Ltd., of Hangzhou, China; and 

  • Hangzhou Sumlo Industrial Co., Ltd., of Zhejiang, China.

By instituting this investigation (337-TA-1384), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission. 

The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

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