On December 4, 2015, Neology, Inc. of Poway, California (“Neology”) filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.

The complaint alleges that Kapsch TrafficCom IVHS, Inc., Kapsch TrafficCom IVHS Holding Corp., Kapsch TrafficCom IVHS Technologies, Kapsch TrafficCom U.S. Corp., and Kapsch TrafficCom Holding Corp.—all of McLean, Virginia—and Kapsch TrafficCom Canada, Inc. of Canada, Star Systems International, Ltd. of Hong Kong, and STAR RFID Co., Ltd. of Thailand (collectively, the “Proposed Respondents”) unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain radio frequency identification (“RFID”) products and components thereof that infringe one or more claims of U.S. Patent Nos. 8,325,044 (the ‘044 patent), 8,587,436 (the ‘436 patent), and 7,119,664 (the ‘664 patent) (collectively, the “asserted patents”). 

According to the complaint, the asserted patents generally relate to RFID technology.  In particular, the ‘044 and ‘436 patents relate to devices, methods, and systems for securely verifying identification information stored in RFID transponders used in vehicle tolling and other RFID applications.  The ‘664 patent relates to improvements to the circuitry and communication protocol of RFID transponders and systems to enhance the reliability and/or efficiency of “read” operations for said devices.

In the complaint, Neology states that the Proposed Respondents import and sell products that infringe the asserted patents.  The complaint specifically refers to various RFID transponders, readers, and system components sold by the Proposed Respondents as infringing products.

Regarding domestic industry, Neology states that it operates a facility in Poway, California that has been used for manufacturing, research and development, and engineering of RFID products, including products that practice the asserted patents.  Neology also refers to domestic licensees of the asserted patents, including the Florida Department of Transportation, which recently licensed the asserted patents as an initial step in connection with a program to update Florida’s tolling equipment to utilize passive RFID vehicle transponders.

As to related litigation, Neology states that it is engaged in a district court litigation against most of the Proposed Respondents in the U.S. District Court for the District of Delaware, where it is asserting six patents, including the ‘044, ‘436, and ‘664 patents.  Neology further states that the ‘044 patent is currently subject to an inter partes review proceeding at the U.S. Patent and Trademark Office.

With respect to potential remedy, Neology requests that the Commission issue a permanent limited exclusion order and permanent cease and desist orders directed at the Proposed Respondents and related entities.