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Align: ITC temporarily stayed enforcement of cease and desist order

Align Technology provided an update on the status of the final determination and cease and desist orders issued by the International Trade Commission, ITC, against the ClearCorrect entities. "The cease and desist orders, originally issued by the ITC with its April 3, 2014 opinion, prohibit the ClearCorrect entities from importing, selling, advertising, or distributing digital data and treatment plans that infringe five of the patents asserted by Align in the ITC investigation. ClearCorrect subsequently moved for a stay of the cease and desist orders pending their appeal to the Federal Circuit, noting the 'potentially catastrophic consequences' of the orders, including the ruin of ClearCorrect Pakistan's business and the disruption of ClearCorrect Operating's manufacturing operations. On June 2 , the Commission temporarily stayed enforcement of the cease and desist orders on procedural grounds pending a determination on ClearCorrect's appeal of the Commission's decisions to the Federal Circuit. In its June 2 order, the Commission expressly reaffirmed that it continues to hold its Final Determination to be entirely correct. The Commission also noted that the decision to temporarily stay enforcement of the cease and desist orders was not recognition of ClearCorrect's likelihood of success on the merits of its case, in part because the Commission agreed with Align that the Federal Circuit is generally required to defer to the ITC's decisions regarding the scope of the ITC's jurisdiction. The Commission opinion also stated that the district court action in Houston provides a forum for Align to recover damages from ClearCorrect for infringement during the pendency of the Commission proceedings, including during the temporary stay."