January 7, 2016
News Release 16-006
Inv. No(s). 337-TA-979
Contact: Peg O'Laughlin, 202-205-1819
USITC Institutes Section 337 Investigation of Certain Radio Frequency Identification (RFID) Products and Components Thereof

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain radio frequency identification (RFID) products and components thereof.  The products at issue in the investigation include readers and transponders combined into identification systems, such as those used to identify vehicles traveling on a toll road so that the toll can be electronically collected.

The investigation is based on a complaint filed by Neology, Inc., of Poway, CA, on December 4, 2015.  A supplement to the complaint was filed on December 22, 2016.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain radio frequency identification (RFID) products and components thereof that infringe patents asserted by the complainant.  The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.

The USITC has identified the following as respondents in this investigation:

Kapsch TrafficCom IVHS, Inc., of McLean, VA;
Kapsch TrafficCom IVHS Holding Corp. of McLean, VA;
Kapsch TrafficCom IVHS Technologies Holding Corp. of McLean, VA;
Kapsch TrafficCom U.S. Corp. of McLean, VA;
Kapsch TrafficCom Holding Corp. of McLean, VA;
Kapsch TrafficCom Canada, Inc., of Mississauga, Ontario, Canada;
Star Systems International, Ltd., of Kwai Chung, Hong Kong; and
STAR RFID Co., Ltd., of Bangkok, Thailand.

By instituting this investigation (337-TA-979), 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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