SECTION-337 AND THE PROTECTION OF INTELLECTUAL PROPERTY IN THE UNITED-STATES - THE COMPLAINANTS AND THE IMPACT

Under Section 337 of the Tariff Act of 1930 a firm can challenge impor ts that infringe its U.S. intellectual property rights, such as patent s, copyrights, and trademarks. Based on publicly available information this paper examines the characteristics of firms that file complaints under Section 337 and also evaluates how firms are affected by the ou tcomes. We find a complaining firm, compared with peer firms in the sa me industry, is typically larger, produces a more diverse range of pro ducts, has invested more in intangibles and is no less profitable. A f inding of no violation significantly depresses the filing firm's profi ts compared to peers. Section 337 appears to protect innovators, but i ts effectiveness in promoting more innovation cannot be demonstrated s o clearly.