In May last year, EPC launched a lawsuit against Innoscience at the ITC, falsely alleging infringement of EPC’s ’508 and ’294 patents. Following an administrative law judge’s initial determination in the past July finding no infringement of claim 1 (the only asserted claim) of the ’508 patent, the latest ITC final determination once again affirmed no violation as to this patent—a huge success for Innoscience.
The final determination, however, affirmed the part of the judge’s initial determination that found violation as to claims 2 and 3 the ’294 patent. The ITC hence has determined to issue a limited exclusion order prohibiting importation of certain accused Innoscience chips. Innoscience disagrees with and will appeal this ruling. This is at least because the ‘294 patent is invalid. Indeed, the U.S Patent and Trademark Office (“USPTO”) instituted an inter partes review (“IPR”) challenging all claims of the ’294 patent under four different grounds and has agreed with Innoscience’s invalidity arguments. The ’294 IPR decision will issue in March 2025.
Innoscience also notes it is established U.S. law that the limited exclusion order does not prohibit Innoscience’s customers from importing end products that use the accused chips. Moreover, since the final decision clarified the meaning of the claim term “compensated GaN layer,” which is at the center of the dispute surrounding the ’294 patent, it has provided clear guidance for Innoscience to design around the ’294 patent by avoiding use of the “compensated GaN layer.” Innoscience already has the design around in place and will release the new products soon.
Accordingly, the EPC litigation shall have no impact on Innoscience’s customers. Moreover, Innoscience will continue to solve the dispute with EPC through appeals in court and invalidity challenges at the USPTO, and is confident that it will achieve a final complete victory.
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