Innoscience comes out fighting after US trade judgement

The US ITC trade regulator has ruled against Innoscience of China in an ongoing patent dispute with EPC over gallium nitride (GaN) chips.

The ITC ruling will see certain GaN power chips from Innoscience banned from the US. However the company is set to launch a new generation of chips that do not infringe, and is challenging the ban, both directly and for customers shipping equipment using the chips.

The decision imposes a ban on Innoscience (Zhuhai) Technology and its affiliates from importing GaN-related products into the United States without a license from EPC. 

This is first successfully litigated US patent dispute involving GaN-based wide bandgap semiconductors. The decision also paves the way for EPC to expand access to its IP through licensing agreements with potential partners and customers around the world.

“After pouring nearly two decades and immense resources into developing our uniquely valuable intellectual property portfolio, this is a tremendous victory for EPC and a major win for fair competition globally, which is critical to the success of next-generation technological advances,” said Alex Lidow, CEO and Co-Founder of EPC. “EPC will continue to vigorously defend our IP against unfair use to ensure that we can continue to innovate and provide our customers with the cutting-edge technologies needed to help power our future.”

However Innoscience has been developing GaN devices that it says do not infringe the EPC patent, and is encouraging customers to continue shipping into the US.

• EPC’s GaN fight looks to China trade war

“The final determination affirmed the part of the judge’s initial determination that found violation as to claims 2 and 3 the ’294 patent. The ITC hence has determined to issue a limited exclusion order prohibiting importation of certain accused Innoscience chips. Innoscience disagrees with and will appeal this ruling,” said Innoscience.

“Innoscience also notes it is established US law that the limited exclusion order does not prohibit Innoscience’s customers from importing end products that use the accused chips. Moreover, since the final decision clarified the meaning of the term compensated GaN layer, which is at the centre of the dispute surrounding the ’294 patent, it has provided clear guidance for Innoscience to design around the ’294 patent by avoiding use of the compensated GaN layer. Innoscience already has the design around in place and will release the new products soon.  

“Accordingly, the EPC litigation shall have no impact on Innoscience’s customers. Moreover, Innoscience will continue to solve the dispute with EPC through appeals in court and invalidity challenges at the USPTO, and is confident that it will achieve a final complete victory,” it said.

The ITC’s most recent decision is the fourth time that EPC’s IP rights have been affirmed against Innoscience in the past six months. EPC initially filed the infringement claim against Innoscience in the ITC in May 2023. In response, Innoscience challenged the validity of the EPC patents at issue in the US, as well as EPC’s counterpart patents in China. EPC says the China National Intellectual Property Administration upheld the validity of EPC’s counterpart patents in April and May 2024.

Innoscience also faces challenges from Infineon Technologies in Germany over other GaN patents.

The ITC’s final determination is subject to a 60-day Presidential review period, expiring on January 6, 2025, which marks the transition to the second Trump presidency.