Hesai announces ITC termination of investigation of alleged patent infringement

Hesai Group (HSAI) announced that the U.S. International Trade Commission terminated an investigation of alleged patent infringement that was commenced by Hesai’s competitor Ouster (OUST). On October 10, 2023 the ITC Commissioners affirmed an August 24, 2023 initial determination by the presiding ITC Administrative Law Judge granting Hesai’s motion to terminate the ITC Action. The company said, “Hesai has always believed all of Ouster’s infringement allegations are baseless and lack merit. Hesai’s lidar products are independently developed, based on years of research and engineering investment, not stolen IP. Ouster wrongly sued Hesai in contravention of its merger partner Velodyne’s patent cross-licensing agreement with Hesai which binds the combined Ouster/Velodyne entity. Ouster’s arguments that it is not bound by the previous patent cross-licensing agreement was both legally and ethically incorrect. Hesai has fully abided by the agreement, but Ouster tried to escape its legal obligations. Further, In Ouster’s previous public statement, Ouster made completely baseless accusations regarding Hesai’s motives. Hesai is an ethical player in the lidar market. The Commission terminated the ITC Action because the prior agreement specified disputes should be arbitrated, not submitted to Courts or the ITC. It is irresponsible and misleading for Ouster to characterize Hesai’s motion to terminate as an attempt to avoid a ruling on the merits. The fact that the Commission affirmed the Administrative Law Judge’s order granting Hesai’s motion to terminate demonstrates that Hesai’s motion was meritorious, and Ouster’s assertions were baseless complaints from a company unwilling to honor agreements to which it is bound. We welcome arbitration since that dispute resolution forum will hear the same legal issues in the patent cross-licensing agreement upon which Hesai has already prevailed in the ITC final ruling.”