The Historical Development Of U.S. Section 337 Investigation And The Responses For Enterprises In Zhejiang

Section 337 is a special clause in US Trade Act. It is a system based on Intellectual Property infringement and using the technical barriers as the appearance of the Anti-dumping. It is a kind of "Administ-istrative remedy" for the US government to solve the problems when the domestic industries face the unfair trade acts. The clause 1342 of The Omnibus Trade and Competitiveness Act of 1988, amended Section 337 on 1994, provided the Unfair methods of competition and unfair acts in the importation of articles into the United States, or in the sale of such articles by the owner, importer,or consignee, the threat or effect of which is to destroy; or substantially injure an industry in the United States; or to prevent the establishment of such an indstry; and to restrain or monopoli-ze trade and commerce in the United States, they infringe a valid and enforceable United States patent or copyright or mask works which were unlawful. It is entirely a domestic industry protection law. In a long practice, most of the Section 337 cases filed arrounded the rights of the Interllecture Property. It makes this section in achieving the purpose of protecting domestic industries, while also highlighting the protection of Intellectual Property as a function of administrative sanctions. Chinese enterprises, especially the enterprises in esternern areas which makes the export-oriented industries as the backbone in China, is a hardest hit of Section 337 investigation by the U.S. International Trade Commission(IT C). Since the financial crisis broken out, enterprises in Zhejiang Province as a member of these, facing enormous challenges, how to effectively prevent ITC filed Section 337 investigation against enterprises in Zhejiang, and how to use this Section to help them conquering such kind of Interllectual Propety barriers,is the problem to be solved.This artile is divided into seven parts in addition to the introduc-tion.Preamble summarizes the academician's awareness of Section 337 and its current research status. While the author will elucidate the motivations and purposes of the Secion 337 research.The first part introduces the Secion 337 in the background and the main content. Primarily introduces the historical development from the provision since 1922, the united States Tariff Act at the beginning to 1994 the U.S. Trade Law. Author believe that Section 337 development is a process of becoming increasingly expand their power, clearly for its investigation objects and reasonable design the system.The second part, the author summarizes the main problems and imperfections of Section 337, and introduces its latest developments in practice. In author's opinion, the main problems of Sention 337 are the conflicts between the narrow of a country's domestic law degree and the balance of the international economic system. Therefore, in the applying of Section 337, it is necessary to properly protect the interests of U.S. businesses, but also expand their unlimited rights of appeal. The article will introduce its latest practices in procedures and physical content.The third part analysis the Chinese enterprises facing the Section 337 investigations in general. Contrast to its main targets including China, Japan and Taiwan from year 2000 to 2009. The author especially count the cases which filed the enterprises in Zhejiang as the defendant, when after the data analysis of Section 337 investigations which filed by ITC, the author find most of the complainants could win the investigation, the main reason is the defendants do not know the rules of this game, when they mastered it, the chance of be filed is getting lower and lower.The fourth part, the author analyzes the reasons why enterprises in Zhejiang facing the investigation. Mainly includes the adverse external economic environment; government departments, chamberds of commerce and the operations of the association is not work timely; the goods'stucture of the enterprises'needs to be improved and poor aware- ness of the Intellectual Property Rights and so on. At the same time, the author also gives some constructive comments.Part V, the author exsampled some cases on Section 337. In these cases, the enterprises in Zhejiang win the investigation when they face it bravly.Part VI, the author made some responses on Section 337 investiga-tion. In this part,the autor analyzed the essence of this investigation as a Intellectual Property barriers. And advised to esteblish a concentrative system, which is including government's early warning and information service; the commerce chambers'group litigation in support and the establishment of mechanisms for responding to a special fund; and the enterprises themselves found its own patent-based system for Intellectual Property strategy. The last part of this article is the conclusion.