International Trade Commission Reverses ALJ Finding That 3Shape Indirectly Infringes Align Patents

Rhea-AI Summary

Align Technology (NASDAQ: ALGN) announced that the International Trade Commission (ITC) modified an earlier ruling regarding an investigation against 3Shape A/S. The ITC acknowledged that 3Shape infringed certain Align patents but invalidated those claims while upholding the validity of two other patents. However, it reversed the finding of indirect infringement. Align expressed disagreement with the ITC's decision and is considering further legal action, aiming to safeguard its intellectual property following significant investments in technology.

Positive

• Align maintains the validity of two of its patents.
• Align has invested over $2 billion in technology innovation.

Negative

• The ITC ruling invalidated certain patent claims against 3Shape.
• 3Shape was not found to have indirectly infringed Align's patents.

SAN JOSE, Calif., Nov. 18, 2020 (GLOBE NEWSWIRE) -- Align Technology, Inc. (NASDAQ: ALGN) today announced that the International Trade Commission (ITC) issued its notice of final determination in an investigation initiated by Align against 3Shape A/S, 3Shape TRIOS A/S, and 3Shape, Inc., modifying and reversing parts of the initial determination of the Administrative Law Judge (ALJ) which found 3Shape infringed two of Align’s patents and found a violation of Section 337 of the Tariff Act of 1930. The ALJ recommended an exclusion order and cease and desist order be entered against 3Shape’s unlawful importation.

The Commission found that there was no violation of Section 337.  The Commission found that 3Shape had infringed certain Align patent claims, but found those claims invalid.  The Commission further did not disturb the ALJ’s findings that two other Align patents were valid, but reversed the ALJ’s finding that 3Shape had indirectly infringed those patents.

"We respectfully disagree with the Commission’s reversal of the Administrative Law Judge’s determination and are evaluating our next steps in this matter, including possible reconsideration by the full Commission and/or an appeal to the Federal Circuit.  We remain steadfast in our commitment to protecting our patented inventions and are proud of our history of innovation, our over two billion dollars in investments in technology and the benefit that our innovations bring to patients and doctors," said Julie Coletti, Align Technology senior vice president, chief legal and regulatory officer. “The ITC is a venue where domestic industry seeks exclusion orders prohibiting importation of infringing goods. We have also asserted more than 25 patents across 6 U.S. District Court cases, where we are seeking damages and injunctive relief for 3Shape’s infringement.”

Contact:
Dina Basin
Phone Number: 650-862-1657
Email: dbasin@aligntech.com 

FAQ

What did Align Technology announce on November 18, 2020 regarding 3Shape?

Align Technology announced the ITC's final determination on its investigation against 3Shape, modifying the initial ruling and finding some of Align's patent claims invalid.

How much has Align Technology invested in technology?

Align Technology has invested over $2 billion in technology and innovation.

What are Align's next steps after the ITC ruling against 3Shape?

Align is considering possible reconsideration by the full Commission or an appeal to the Federal Circuit.

What were the findings of the ITC regarding Align's patents?

The ITC found certain Align patent claims infringed by 3Shape but ultimately deemed those claims invalid.

Did the ITC find any violations of Section 337 by 3Shape?

The ITC did not find any violations of Section 337 despite acknowledging patent infringement.