Garmin International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced its response to a modified order by the International Trade Commission (ITC) on August 18, 2016, in the long-running investigation brought by Navico Holdings AS against Garmin. The modified ITC order did not address Garmin’s new tilted DownVüTM scanning sonar transducer design – which Garmin strongly asserts does not infringe – that has been shipping since last December when the previous decision was made by the ITC. The status of Garmin’s new tilted transducer design relative to any of Navico’s patents is still a matter pending before the courts and government agencies, and Navico has never accused Garmin’s new tilted design of infringement before the ITC. On August 25, 2016, Navico issued a press release regarding the ITC’s modified order that incorrectly asserts that the new tilted design infringes on their patents as no court or government agency has ever made any infringement ruling on Garmin’s new tilted transducer design.
In fact, the modified ITC order confirmed the ITC’s previous decision made in December 2015, that Garmin can import and sell Garmin DownVü scanning sonar transducers, including the original design, because they do not separately infringe any valid claim of Navico’s patents. The modified ITC order also left in place the ITC’s earlier decision that Garmin’s chartplotters do not infringe any of Navico’s patents. It clarifies the certification language that Garmin may use when importing its transducers which is a procedural matter. The modified ITC order applies only to Garmin and has no impact on any existing distributor, dealer, or retailer inventory or any products already purchased by our customers.
Garmin fully cooperated with U.S. Customs and Border Patrol (CBP) after the ITC’s original order to ensure that the importation of its products were in full compliance with the ITC’s order. Garmin is currently cooperating with CBP to ensure compliance with the ITC’s modified order and will provide relevant information to our distributors, dealers, and retailers as it becomes available.
All of these issues are currently pending before the Court of Appeals for the Federal Circuit, the court with review authority over the ITC, and Garmin anticipates a definitive ruling on these topics in early 2017.