[Federal Register: June 13, 2007 (Volume 72, Number 113)]
[Notices]
[Page 32682-32683]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jn07-111]
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INTERNATIONAL TRADE COMMISSION
[Inv. No. 337-TA-543]
In the Matter of Certain Baseband Processor Chips and Chipsets,
Transmitter and Receiver (Radio) Chips, Power Control Chips, and
Products Containing Same, Including Cellular Telephone Handsets;
Commission Determination on the Issues of Remedy, the Public Interest,
and Bonding; 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 issued a limited exclusion order and a cease and desist
order in the above-captioned investigation directed against certain
products of respondent Qualcomm Incorporated of San Diego, California
(``Qualcomm'') and certain downstream products that contain them. The
Commission has terminated the investigation.
FOR FURTHER INFORMATION CONTACT: Michael Liberman, Esq., Office of the
General Counsel, U.S. International Trade Commission, 500 E Street,
SW., Washington, DC 20436, telephone 202-205-3152. Copies of the ID and
all other nonconfidential 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 Street, SW., Washington, DC
20436, telephone 202-205-2000. Hearing-impaired persons are advised
that information on this matter can be obtained by contacting the
Commission's TDD terminal on 202-205-1810. 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.
SUPPLEMENTARY INFORMATION: On June 21, 2005, the Commission instituted
an investigation under section 337 of the Tariff Act of 1930, 19 U.S.C.
1337, based on a complaint filed by Broadcom Corporation of Irvine,
California, alleging a violation of section 337 in the importation,
sale for importation, and sale within the United States after
importation of certain baseband processor chips and chipsets,
transmitter and receiver (radio) chips, power control chips, and
products containing same, including cellular telephone handsets by
reason of infringement of certain claims of U.S. Patent Nos. 6,374,311;
6,714,983 (``the '983 patent''); 5,682,379 (``the '379 patent'');
6,359,872 (``the '872 patent''); and 6,583,675. 70 FR 35707 (June 21,
2005). The complainant named Qualcomm Incorporated of San Diego,
California (``Qualcomm'') as the only respondent. The '379 and '872
patents were terminated from this investigation.
On October 19, 2006, the presiding administrative law judge
(``ALJ'') issued an Initial Determination on Violation of Section 337
and a Recommended Determination on Remedy and Bond (collectively,
``ID''), finding a violation of section 337. On December 8, 2006, the
Commission issued a notice of its decision to review and modify in part
the ALJ's final ID. The modification made by the Commission did not
affect the finding of violation. The Commission also requested the
parties to the investigation, interested government agencies, and any
other interested persons to file written submissions on the issues of
remedy, the public interest, and bonding.
On January 25, 2007, respondent Qualcomm moved, inter alia, for
oral argument and hearing on the issues of remedy and the public
interest. On March 21-22, 2007, the Commission held a public hearing on
the issues of remedy and the public interest. Subsequently, the
Commission extended the target date for completion of this
investigation to June 7, 2007.
Having reviewed the record in this investigation, including the
written submissions of the parties and the testimony at the Commission
public hearing, the Commission has made the following determinations on
the issues of remedy, the public interest, and bonding.
The Commission has determined that the appropriate form of relief
is, inter alia, a limited exclusion order prohibiting the unlicensed
entry of baseband processor chips or chipsets, including chips or
chipsets incorporated into circuit board modules and carriers,
manufactured abroad by or on behalf of Qualcomm or any of its
affiliated companies, parents, subsidiaries, contractors, or other
related business entities, or their successors or assigns, that are
programmed to enable the power saving features covered by claims 1, 4,
8, 9, or 11 of the '983 patent, as well as handheld wireless
communications devices, including cellular telephone handsets and PDAs,
containing Qualcomm baseband processor chips or chipsets that are
[[Page 32683]]
programmed to enable the power saving features covered by claims 1, 4,
8, 9, or 11 of the '983 patent. The Commission limited exclusion order
does not apply to computer data cards. Also exempted from the
Commission limited exclusion order are handheld wireless communications
devices that are of the same models as handheld wireless communications
devices that were being imported into the United States for sale to the
general public on or before the date of the Commission limited
exclusion order. The exempted models must be identifiable by specific
and verifiable model numbers, denoting model-specific product
specifications, features, and functions. Importers will be able to
certify to the Bureau of Customs and Border Protection (``Customs'')
that their products are exempted. This exemption will not apply to
handheld wireless communications devices that differ in terms of model
number, product specifications, features, or functions from wireless
handheld communications devices that were being imported into the
United States for sale to the general public on or before the date of
the Commission limited exclusion order.
To assist enforcement of the exclusion order, and to aid importers
seeking a good faith basis on which to certify that products are
exempted as pre-existing models, we encourage importers and parties
that sell downstream devices to members of the general public to supply
Customs, as soon as practicable, information and supporting
documentation as to those handset models that contain the infringing
chips and that were being imported for sale to the general public on or
before the date of the limited exclusion order. That submission should
include a complete list of the product specifications, features, and
functions associated with each exempted model number. Imports of
prototypes, or downstream devices for use in testing, for limited-scale
distribution for marketing or other purposes, or any purpose other than
widespread sales to end use consumers, do not constitute imports for
sale to the general public.
The Commission has also determined to issue a cease and desist
order that prevents Qualcomm from engaging in certain activities in the
United States related to the infringing chips.
The Commission found that, while exclusion of all downstream
products could adversely affect the public interest as enumerated in
section 337(d)(1) (19 U.S.C. 1337(d)(1)), the exemption for previously
imported models sufficiently ameliorates this impact such that the
limited exclusion and cease and desist orders should be issued.
Finally, the Commission determined that the amount of bond to permit
temporary importation during the Presidential review period (19 U.S.C.
Sec. *1337(j)) shall be in the amount of one hundred (100) percent of
entered value for infringing chips or chipsets imported separately, or
five (5) percent of entered value per handheld wireless communications
device containing infringing chips or chipsets. Pursuant to subsection
(j) of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C.
1337(j), from the day after this Order is received by the United States
Trade Representative (70 FR 43251 (July 21, 2005)), this bond will be
in effect until such time as the United States Trade Representative
notifies the Commission that she approves or disapproves this action
but, in any event, not later than sixty (60) days after the date of
receipt of this action.
Vice Chairman Shara L. Aranoff, Commissioner Deanna Tanner Okun,
Commissioner Charlotte R. Lane, and Commissioner Irving A. Williamson
voted in favor of the remedial orders. They provide their supporting
analysis in two separate opinions. Chairman Daniel R. Pearson and
Commissioner Dean A. Pinkert dissented and provide additional and
dissenting views.
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 Sec. 210.50 of the Commission's Rules of Practice and Procedure (19
CFR 210.50).
Issued: June 7, 2007.
By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. E7-11389 Filed 6-12-07; 8:45 am]
BILLING CODE 7020-02-P