U.S. launches Section 337 probe involving Taiwan firms

Taipei, Oct. 11 (CNA) The U.S. International Trade Commission (USITC) has launched a Section 337 investigation naming Taiwanese technology companies, including Foxconn, Delta Electronics Inc. and Quanta Computer Inc., as respondents, with Taiwan's Ministry of Economic Affairs (MOEA) pledging assistance if needed.

The USITC said Friday in a statement that it had voted to institute an investigation under Section 337 of the U.S. Tariff Act of 1930 into certain vertical power delivery systems, related components and computing devices incorporating such systems.

The investigation covers 20 companies from Taiwan, China, Germany and the United States, the commission said, noting that it has not yet made any decision on the merits of the case.

According to the MOEA's International Trade Administration (ITA), the probe involves power delivery technology used in artificial intelligence (AI) servers.

In addition to the three Taiwanese companies, China-based Luxshare Precision Industry Co. and Foxconn Industrial Internet Co. are also named as respondents, it said.

The ITA said the investigation stems from a complaint filed by Massachusetts-based power technology company Vicor Corp. on Sept. 9, with a supplemental filing submitted the following day.

Vicor alleges that vertical power delivery systems, related components and computing devices incorporating the technology infringe its patents when imported into or sold in the U.S. The company is seeking a limited exclusion order to bar imports of the accused products, as well as cease-and-desist orders to prevent their sale in the U.S.

The ITA said Section 337 investigations typically take 12 to 16 months to complete. If the complainant prevails, the USITC can issue exclusion and cease-and-desist orders restricting the affected products from entering or being sold in the U.S. market.

The agency described the case as a patent dispute between private companies being handled under U.S. Section 337 procedures. It said the government respects the legal process and will continue to monitor developments, maintain contact with the affected companies and provide assistance if necessary.

The USITC said the case will be assigned to an administrative law judge, who will hold a hearing and issue an initial determination on whether Section 337 has been violated before the commission conducts its own review.

The commission said it will set a target date for completing the investigation within 45 days after instituting the probe.

Any remedial orders issued would take effect immediately and become final after 60 days unless disapproved by the U.S. Trade Representative on policy grounds, it added.

Delta Electronics said it places great importance on intellectual property rights and compliance with laws in all jurisdictions, and will respond to the investigation through legal procedures to safeguard its rights and interests.

The company declined to comment further because the case is now in legal proceedings, but said its products are not currently affected by the investigation.