Hong Electronics, a state-owned factory in the People’s Republic of China, made counterfeit parts that were misrepresented as genuine and sold in the United States.

Integrated Technology Corp., a U.S. company that made and sold the genuine parts in the U.S. market, filed a suit in a U.S. court against Hong, alleging violations of trademark and patent law.

Does the doctrine of sovereign immunity prevent the U.S. court from hearing Integrated’s suit? No. The doctrine of sovereign immunity exempts foreign nations from the jurisdiction of U.S. courts, subject to certain conditions. The Foreign Sovereign Immunities Act governs the circumstances in which an action may be brought in a U.S. court against a foreign state, its political ______________, or any of its ______________ or ______________. A foreign state is not immune from the jurisdiction of U.S. courts when it engages in ______________ activity that takes place within the United States or that has a ______________ effect in the United States. Here, Hong engaged in ______________ activity when it sold its counterfeit parts in the United States.

Thus, a U.S. court can exercise jurisdiction.