First Solar Shifts Patent Enforcement Strategy Amid New US Polysilicon Tariffs

First Solar, recognized as the largest solar manufacturer in the United States, has announced a significant shift in its intellectual property enforcement strategy amid evolving trade policies. The company voluntarily withdrew its Section 337 complaint and moved to terminate the ongoing investigation at the US International Trade Commission (USITC) without prejudice, signaling an intent to potentially refile in the future.

Section 337 of the Tariff Act of 1930 empowers the USITC to address unfair practices involving imported goods, including intellectual property infringement. First Solar’s withdrawal comes in the wake of the Trump Administration’s recent national security measure imposing a 15% tariff on imports of polysilicon and related derivatives under Section 232 of the Trade Expansion Act. This tariff, effective December 4, 2026, aims to mitigate China’s control over the polysilicon supply chain critical to solar manufacturing.

Jason Dymbort, General Counsel of First Solar, emphasized the impact of the tariff action, stating, “The Trump Administration’s Section 232 action helps level the playing field at the border, and we are more determined than ever to enforce our IP rights and defend the rule of law here at home.” He described the withdrawal as a procedural step that clears the way for ongoing and future patent infringement suits to proceed in federal courts.

With the Section 337 investigation discontinued, First Solar is advancing its existing Tunnel Oxide Passivated Contact (TOPCon) patent lawsuits in US District Courts. These cases, previously stayed pending the USITC investigation, target affiliates of Canadian Solar, Jinko Solar, T1 Energy, and Trina Solar. The company also intends to resume enforcement actions globally against other manufacturers it believes infringe its TOPCon patent portfolio.

First Solar’s TOPCon patents originated from its 2013 acquisition of TetraSun and encompass issued patents in multiple jurisdictions, including the United States, Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, Malaysia, Singapore, South Korea, the United Arab Emirates, and Vietnam. These patents have validity extending through 2030 and beyond, supplemented by pending applications in several regions. While First Solar is primarily known for its thin-film cadmium telluride (CdTe) panels, its TOPCon technology relates to crystalline silicon solar cells, a segment where it has pursued licensing agreements with companies such as Talon PV.

In July 2024, First Solar publicly announced its intention to license and enforce its TOPCon patent portfolio, initiating infringement investigations against leading crystalline silicon solar cell manufacturers. Subsequently, the company confirmed patent infringement claims against JinkoSolar, Canadian Solar, JA Solar, LONGi, and Trina Solar.

The strategic move to district court litigation offers First Solar remedies unavailable through the USITC. While the Commission can issue exclusion orders to block infringing imports and cease and desist orders to halt distribution, it lacks authority to award monetary damages. US District Courts, however, can provide such financial remedies, potentially enhancing First Solar’s enforcement leverage.

First Solar maintains a substantial manufacturing and research footprint in the Western Hemisphere, operating five manufacturing facilities across Alabama, Louisiana, and Ohio, with a sixth plant under construction in South Carolina. The initial phase of this new facility is expected to commence operations in the latter half of 2026.

This recalibration of First Solar’s patent enforcement strategy reflects the interplay between evolving trade policies and intellectual property litigation in the solar industry, underscoring the company’s commitment to protecting its innovations amid a shifting global supply chain landscape.