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May 18, 2015
Brattle Economists Analyze Injury to the Domestic Industry for American Crane Manufacturer in a Misappropriation of Trade Secrets Investigation at the ITC

In an order released on May 6, 2015 the U.S. International Trade Commission (ITC) determined that In the Matter of Certain Crawler Cranes and Components Thereof (Inv. No. 337-TA-887) Sany Heavy Industry Co. Ltd. (Sany), a Chinese heavy machinery manufacturing company, misappropriated trade secrets from U.S.-based Manitowoc Cranes LLC (Manitowc) and harmed the domestic crawler crane industry. The opinion affirmed parts of Administrative Law Judge (ALJ) Shaw’s Initial Determination (ID) and issued a cease and desist order against Sany America Inc. with respect to the asserted trade secrets for 10 years.

Brattle consultants Dr. Pallavi Seth and Dr. Kevin Neels were retained by Counsel for Complainants, Manitowoc, to analyze the economic prong of the domestic industry requirement and to demonstrate injury to the domestic industry from misappropriation of trade secrets by the Respondent. Drs. Seth and Neels analyzed Manitowoc’s extensive domestic investments and evaluated the extent to which misappropriation of trade secrets by Sany had lead to or were likely to lead to loss of sales, revenue and market position, damage to reputation and price erosion within the domestic industry for crawler cranes. In an order released in February 2014, ALJ Shaw granted a motion for summary determination, finding that Manitowoc had satisfied the economic prong of the domestic industry requirement and had shown that actions by Sany had injured or threated to injure the domestic crawler crane industry.

The Brattle Group has been involved in numerous Section 337 investigations in recent years. Our expertise benefits from the extensive institutional knowledge necessary for developing testimony and analysis in this specialized forum, coupled with relevant technical skills spanning our Intellectual Property, International Trade, and Telecommunications practices.