The U.S. International Trade Commission said it will review an administrative judge's finding that five U.S. companies did not violate trade laws by importing foam shoes that Croc's alleges infringe two of their patents.
The ITC began investigating the matter in May 2006 after Croc's alleged Collective Licensing International, LLC (“Collective”) of Englewood, CO.; Double Diamond Distribution Ltd. of Saskatoon, Saskatchewan; Effervescent Inc. of Fitchburg, MA; Gen-X Sports, Inc. of Toronto, Ontario; Holey Shoes Holding Ltd. of Vancouver, BC; Australia Unlimited, Inc. of Seattle, WA; Chengs Enterprises Inc. of Carlstadt, NJ; D. Myers & Sons, Inc. of Baltimore, MD; Inter-Pacific Trading Corp. of Los Angeles; Pali Hawaii of Honolulu and Shaka Shoes of Kaliua-Kona, Hawaii.
The Commission terminated an investigation on Croc's trade dress allegation on Sept. 11, 2006. A twelfth respondent, Old Dominion Footwear, Inc. of Madison Heights, VA., was added to the investigation on Oct. 10, 2006. All but five respondents have been terminated from the investigation on the basis of a consent order, settlement agreement, or undisputed Commission determination of non-infringement.
Croc's complaint requess the ITC issue a permanent general exclusion order and permanent cease and desist orders against the five remaining respondents – Collective, Double Diamond, Effervescent, Gen-X Sports, and Holey Shoes.
On April 11, 2008, the ALJ issued his final determination, which found no violation of section 337 by the remaining respondents. On Tuesday, the ITC said that it will review that decision with respect to non-infringement by the respondents products of a Croc's patent and “the lack of satisfaction of the technical prong of the domestic industry requirement by Crocs footwear.” The Commission has also determined to review the ALJs finding of invalidity with respect to one of Croc's patents.
