The U.S. International Trade Commission (ITC) has voted to institute an investigation of certain downhole well data recorders and components thereof. The products at issue in this investigation are electronic recorders or gauges that are utilized in the oil and gas industry to monitor operating conditions within an oil or gas well.

The investigation is based on a complaint filed by Petroleum Reservoir Data, Inc., of Anchorage, AL, on January 5, 2000. The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain downhole well data recorders and components thereof that infringe a patent owned by Petroleum Reservoir Data, Inc. In its complaint, the complainant requests that the ITC issue a permanent exclusion order and permanent cease and desist orders.

The ITC has identified the following companies as respondents in the investigation:

Spartek Systems of Sylvan Lake, Alberta, Canada, and
Halliburton Company of Dallas, TX.

By instituting this investigation (337-TA-427), the ITC has not yet made any decision on the merits of the case. The case will be referred to the Honorable Debra Morriss, an ITC administrative law judge, who will schedule and hold an evidentiary hearing. Judge Morriss will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation. ITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the President of the United States within that 60-day period.