ALJ Charneski Grants Motion for Summary Determination On The Economic Prong Of The Domestic Industry Requirement in Certain Machine Vision Software (337-TA-680)
On April 15, 2010 ALJ Carl C. Charneski issued the public version of Order No. 41 (dated March 31, 2010), in Certain Machine Vision Software, Machine Vision Systems, and Products Containing Same (Inv. No. 337-TA-680).
In the Order, ALJ Charneski granted a motion filed by complainants Cognex Corporation and Cognex Technology & Investment Corporation (collectively, “Cognex”) for summary determination on the economic prong of the domestic industry requirement. Cognex argued that it satisfied the economic prong of the domestic industry requirement with regard to its PatMax and PatQuick software tools (“the asserted products”) as they relate to the asserted U.S. Patent Nos. 7,016,539 and 7,065,262 (the “patents at issue”). According to the Order, the Respondents did not oppose the motion and the Commission Investigative Staff supported the motion.
ALJ Charneski determined that Cognex had significantly invested in plant and equipment, significantly employed labor or capital, and substantially invested in the exploitation of the patents at issue. With regard to significant investment in plant and equipment, ALJ Charneski determined that Cognex allocated a certain percent of a facility in Massachusetts to assembly, software configuration and research relating to the subject products. In addition, the ALJ determined that Cognex carries out quality control for at least some of the asserted products at its facilities in Oregon and Wisconsin.
With respect to significant employment of labor or capital, ALJ Charneski determined that, since 2007, Cognex spent a certain amount of capital in the US for equipment and personnel employed in the production of the asserted products, including software engineers and quality assurance employees. The number of employees and their respective salaries were redacted from the public version of the Order.
With respect to substantial investment in the exploitation of the asserted products, ALJ Charneski determined that a certain number of Cognex software engineers in Massachusetts maintain, support, update and develop Cognex’s PatMax and PatQuick software tools. Further, Cognex engineers in Massachusetts and other employees consult with customers in technical areas, including the development of customized projects.
