Recently development in the patent infringement lawsuit filed by the US lidar company Ouster against Shanghai Hesai Group saw the chief administrative judge of the US International Trade Commission (ITC) issued an order approving Hesai’s motion to terminate the ITC investigation.

On April 11, 2023, Ouster sued Hesai for infringing its five patents related to lidar technology in the US District Court for the District of Delaware. Ouster also filed a lawsuit against Hesai at the ITC, requesting the ITC to initiate a 337 investigation and issue an exclusion order.

On May 11, 2023, the ITC voted to initiate a 337 investigation of certain lidar systems and components.

On June 22, 2023, Hesai filed a motion to terminate the ITC’s action. Hesai claimed in its motion that Ouster’s infringement allegations should be barred by a settlement agreement that Hesai and Velodyne reached in 2020. Velodyne and Ouster completed their merger in February 2023. Hesai claimed that according to the settlement agreement, the disputes between the parties should be resolved through arbitration, not through courts or ITC.

On August 24, 2023, the ITC administrative judge issued an order approving Hesai’s motion to terminate the ITC investigation. But the order is currently a preliminary decision and is subject to review by the ITC commissioners.

Hesai said that Hesai has become a leader in lidar technology, with more than 400 granted patents and more than 700 pending patent applications worldwide. Hesai values and respects valid and enforceable intellectual property rights and will continue to defend against any improper or unfounded allegations.

Ouster said in a statement that Ouster will vigorously defend its patents and prevent all infringing products from entering the US. Ouster’s patent infringement lawsuit against Hesai in the Delaware court is currently awaiting the ITC’s investigation. If the ITC commissioners ultimately agree to terminate the investigation, the mandatory stay order of the Delaware court will be lifted and the lawsuit filed in that court will continue.