On August 22, 2014, Advanced Research Corp. of White Bear Lake, Minnesota ("ARC") filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.

The complaint alleges that International Business Machines Corp. of Armonk, New York ("IBM"), Fujifilm Holdings Corp. and Fujifilm Corp. of Japan (collectively, "Fujifilm"), and Oracle Corp. of Redwood Shores, California ("Oracle") (all collectively, the "Proposed Respondents") unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain formatted magnetic data storage tapes and cartridges containing the same that infringe one or more claims of U.S. Patent Nos. 7,525,761 (the '761 patent), 7,948,705 (the '705 patent), 8,254,052 (the '052 patent), 8,437,103 (the '103 patent), and 8,542,457 (the '457 patent) (collectively, the "asserted patents"). 

According to the complaint, the asserted patents generally relate to formatted magnetic data storage tape technology. In particular, the '761 and '705 patents relate to a process of formatting magnetic data storage tapes with multiple channel, single coil formatting heads.  In addition, the '761, '705, '052, and '457 patents relate to a process of formatting magnetic data storage tapes with multiple channel, multiple coil formatting heads. Lastly, the '103 patent relates to tape formatted with multiple channel, multiple coil formatting heads.

In the complaint, ARC states that the Proposed Respondents import and sell products that infringe the asserted patents.  The complaint specifically refers to various IBM, Oracle, and Fujifilm tape products that are allegedly manufactured by Fujifilm in Japan and then imported into the U.S., sold for importation into the U.S., and/or sold after importation into the U.S. through various distributors and channels.

Regarding domestic industry, ARC states that it has made significant domestic investments in plant, equipment, labor and capital with respect to articles protected by the asserted patents, and substantial domestic investment in the exploitation of the patented technology and articles covered by the asserted patents, including substantial domestic investments in engineering and research and development.  ARC specifically refers to its facility in Minnesota, where it manufactures formatting heads and associated electronics protected by the asserted patents.  ARC also states that its domestic industry would be greater but for the Proposed Respondents' alleged patent infringement.

As to related litigation, ARC states that, concurrently with the filing of the instant ITC complaint, it is also filing suit against the Proposed Respondents in the U.S. District Court for the District of Minnesota, alleging infringement of the asserted patents.

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