The U.S. Supreme Court on Monday declined to review Roku Inc.’s challenge to a Federal Circuit ruling that upheld a U.S. International Trade Commission (ITC) decision barring the importation of certain Roku streaming devices deemed to infringe a Universal Electronics Inc. patent.
ITC Ruling and Domestic Industry Requirements
The ITC had issued an exclusion order under Section 337 of the Tariff Act of 1930, which prohibits the importation of infringing products if the patent owner can demonstrate significant domestic investment in products tied to the patent.
Roku contested this finding, arguing that Universal Electronics failed to meet the “domestic industry” requirement, as its investments were tied to unpatented software — QuickSet — incorporated into Samsung televisions, rather than the patent-protected product itself. The patent at issue, U.S. Patent No. 10,593,196, covers a device designed to reconcile incompatibilities between wired and wireless video equipment, such as televisions and DVD players.
Roku’s Arguments Against the ITC Decision
In its petition, Roku argued that the ITC overstepped its congressional authority by broadening the domestic industry requirement beyond what the law intended. The company claimed the ruling could open the door for nonpracticing entities (NPEs) to seek exclusion orders without genuine domestic industry investments.
