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 imports that infringe its U.S. intellectual property rights, such as patents, 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 outcomes. We find a complaining firm, compared with peer firms in the same industry, is typically larger, produces a more diverse range of products, has invested more in intangibles and is no less profitable. A finding of no violation significantly depresses the filing firm's profits compared to peers. Section 337 appears to protect innovators, but its effectiveness in promoting more innovation cannot be demonstrated so clearly. Copyright 1996 by MIT Press.