Crocs, Inc. v. International Trade Commission

Crocs, Inc. (plaintiff) was the assignee of the ‘789 design patent for breathable footwear pieces. The footwear was made of a foam base section and a foam strap connected with a pair of ties that kept the strap in position. The ‘789 patent claimed an ornamental footwear design as depicted in drawings of the shoes. Crocs pursued an action through the International Trade Commission (commission) (defendant), a quasi-judicial federal agency, against companies (the importers) that made foam shoes in Asia and imported them into the United States for sale. Crocs claimed that the competing shoes were nearly identical to the patented foam shoes and infringed the ‘789 patent. Crocs moved for a summary determination of its claim for infringement of the ‘789 patent. The importers moved for a summary determination of noninfringement of the ‘789 patent. An administrative-law judge (ALJ) conducting the trial phase for the commission granted the importers’ motion for a summary determination of noninfringement. The commission reviewed the ALJ’s decision and issued an order of vacatur and remand. The ALJ held an evidentiary hearing and concluded again that the importers did not infringe the ‘789 design patent. The ALJ focused on the minor differences in the importers’ foam-shoe designs, including the strap thickness, the lack of round holes in the upper portions of the shoes, the holes placed in a web-shape rather than a systemic pattern, and the tread patterns covering the entire soles. Crocs filed a petition for review of the ALJ’s decision. The commission affirmed the ALJ’s finding that the importers did not infringe the ‘789 design patent based on the minor design differences. Crocs appealed the commission’s final determination to the federal appeals court for review.