In re Certain Wearable Electronic Devices with ECG Functionality and Components Thereof

California company AliveCor (plaintiff) designed and developed wearable electronic devices to help users detect and monitor heart conditions. AliveCor obtained patents for its technologies and marketed its products for use in conjunction with the Apple Watch via an app and a watchband accessory known as the KBS system. AliveCor invested in research and development to build KBS. Even after AliveCor stopped manufacturing and selling KBS in 2018, AliveCor continued investing in research and development related to making use of its patented technologies and making improvements that benefited current users. AliveCor eventually filed a complaint with the International Trade Commission (ITC) alleging that Apple Inc. (defendant) was violating § 337 of the Tariff Act of 1930 by importing Apple Watches that infringed AliveCor’s patents. Specifically, AliveCor alleged that Apple copied AliveCor’s technology and then made the Apple operating system incompatible with AliveCor’s software, attempting to drive AliveCor out of the market. Apple denied violating § 337. Alternatively, Apple argued that even if it violated § 337, remedial orders excluding the importation of offending watches would be inappropriate because the orders would raise public health and welfare concerns. Specifically, Apple argued that (1) current Apple Watch users would not be able to enjoy the watches’ many features, including its health features, and (2) research projects using allegedly infringing watches would be hindered. An administrative-law judge issued a determination that AliveCor had proved the existence of a domestic industry, a requirement for relief under § 337. The ITC reviewed that determination.