[Federal Register Volume 79, Number 46 (Monday, March 10, 2014)]
[Notices]
[Pages 13328-13329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-05072]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-837]


Certain Audiovisual Components and Products Containing the Same; 
Commission Determination To Grant the Motions to Partially Terminate 
the Investigation as to All Claims Relating to U.S. Patent Nos. 
5,780,087, 6,982,663, and 6,707,867; Final Determination of No 
Violation With Respect to U.S. Patent No. 6,452,958; Termination of the 
Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined to grant the joint motion to partially 
terminate the investigation as to U.S. Patent Nos. 5,780,087 (``the 
'087 patent'') and 6,982,663 (``the '663 patent'') based upon a 
settlement agreement. The Commission has also determined to terminate 
the investigation as to expired U.S. Patent No. 6,707,867 (``the '867 
patent'') and to take no position on the findings as to the same. The 
Commission has further determined that no violation of section 337 has 
been proven with respect to U.S. Patent No. 6,452,958 (``the '958 
patent''). The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Cathy Chen, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone (202) 205-2392. Copies of non-
confidential documents filed in connection with this investigation are 
or will be available for inspection during official business hours 
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. 
International Trade Commission, 500 E

[[Page 13329]]

Street SW., Washington, DC 20436, telephone (202) 205-2000. General 
information concerning the Commission may also be obtained by accessing 
its Internet server (http://www.usitc.gov). The public record for this 
investigation may be viewed on the Commission's electronic docket 
(EDIS) at http://edis.usitc.gov. Hearing-impaired persons are advised 
that information on this matter can be obtained by contacting the 
Commission's TDD terminal on (202) 205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on April 11, 2012, based on a complaint filed by complainants LSI 
Corporation of Milpitas, California, and Agere Systems Inc. of 
Allentown, Pennsylvania (collectively, ``LSI''). 77 FR 22803 (Apr. 11, 
2012). The complaint, as amended, alleged violations of section 337 of 
the Tariff Act of 1930, as amended (19 U.S.C. 1337), in the importation 
into the United States, the sale for importation, and the sale within 
the United States after importation of certain audiovisual components 
and products containing the same by reason of infringement of certain 
claims of the '087, '958, '867, and '663 patents. The Commission's 
notice of investigation named several respondents, including Realtek 
Semiconductor Corporation of Hsinchu, Taiwan (``Realtek''); Funai 
Corporation, Inc. of Rutherford, New Jersey; Funai Electric Co., Ltd. 
of Osaka, Japan; P&F USA, Inc. of Alpharetta, Georgia; and Funai 
Service Corporation of Groveport, Ohio (collectively, ``Funai''). Other 
respondents and certain patent claims were terminated from the 
investigation previously. No Commission investigative attorney is 
participating in the investigation.
    The ALJ issued his final initial determination (``ID'') with 
respect to the remaining respondents and claims on July 18, 2013. The 
ALJ found that a violation of section 337 had been proven with respect 
to claims 1, 5, 7-11, and 16 of the '087 patent. The ALJ found no 
violation of section 337 had been proven with respect to any asserted 
claims of the '958, '867, and '663 patents. On July 31, 2013, the ALJ 
issued a recommended determination (``RD'') on remedy and bonding.
    On October 17, 2013, the Commission determined to review the final 
ID in its entirety and requested additional briefing from the parties 
on certain issues. The Commission also solicited briefing from the 
parties and from the public on the issues of remedy, the public 
interest, and bonding. On November 1, 2013, the parties filed briefs 
addressing the Commission's questions and the issues of remedy, the 
public interest, and bonding. Also on November 1, 2013, non-parties 
Barnes & Noble, Inc.; InterDigital, Inc.; Intel Corporation; and Cisco 
Systems, Inc. filed comments on the public interest. On November 12, 
2013, the parties filed reply briefs in connection with the 
Commission's notice.
    On January 17, 2014, complainants and respondent Funai jointly 
filed a motion to partially terminate the investigation as to all 
claims relating to the '087 and the '663 patents based on a settlement 
agreement. Respondent Realtek, which was not accused of violating 
section 337 in regard to the '087 and the '663 patents, did not file a 
response.
    On February 6, 2014, complainants filed a motion to partially 
terminate the investigation as to the '867 patent and to vacate the 
ALJ's determination as to same due to the imminent expiration of that 
patent on February 23, 2014. Respondents opposed vacatur on February 
12, 2014.
    Having examined the record of this investigation, the Commission 
has determined to grant the joint motion to partially terminate the 
investigation as to the '087 and the '663 patents based on a settlement 
agreement. We find no indication that termination of the investigation 
with respect to these patents based on settlement will adversely impact 
the public interest.
    With respect to the '867 patent, because the Commission grants 
prospective relief only, when the '867 patent expired on February 23, 
2014, the investigation concerning the '867 patent became moot. 
Therefore, the Commission has determined to take no position on the 
final ID's findings pertaining to the '867 patent. See Beloit Corp. v. 
Valmet Oy, 742 F.2d 1421, 1423 (Fed. Cir. 1984).
    With respect to the remaining asserted patent--the '958 patent--the 
Commission has determined that no violation of section 337 has been 
proven based on the record of this investigation. Specifically, the 
Commission affirms the ID's finding that the accused articles were not 
proven to infringe the asserted claims of the '958 patent. In addition, 
the Commission reverses the ALJ's determination that the asserted '958 
claims were not proven invalid. The Commission has also determined to 
take no position on the ALJ's determination with respect to the 
Respondents' RAND and equitable defenses. See Beloit Corp., 742 F.2d at 
1423.
    Furthermore, the Commission has determined that complainants have 
not proven the existence of a domestic industry with respect to the 
'958 patent. The Commission affirms the ALJ's finding that the Nokia 
domestic industry articles were not shown to practice the claims of the 
'958 patent and, therefore, complainants did not prove a domestic 
industry under 19 U.S.C. 1337(a)(3)(A)-(B). Because complainants have 
not demonstrated the existence of an article protected by the '958 
patent, the Commission has also determined to reverse the ALJ's finding 
that a domestic industry exists pursuant to 19 U.S.C. 1337(a)(3)(C) 
through complainants' licensing activities. See Certain Computers and 
Computer Peripheral Devices, and Components Thereof, and Products 
Containing Same, Inv. No. 337-TA-841, Comm'n Op. at 32 (Jan. 9, 2014).
    A Commission opinion will be forthcoming.
    The Commission has terminated this investigation. The authority for 
the Commission's determination is contained in section 337 of the 
Tariff Act of 1930, as amended (19 U.S.C. 1337), and in Part 210 of the 
Commission's Rules of Practice and Procedure (19 CFR Part 210).

    By order of the Commission.

    Issued: March 4, 2014.
Lisa R. Barton,
Acting Secretary to the Commission.
[FR Doc. 2014-05072 Filed 3-7-14; 8:45 am]
BILLING CODE 7020-02-P