The U.S. International Trade Commission (ITC) has voted to institute an investigation of certain digital processors and digital processing systems, components thereof, and products containing same. The products at issue in this investigation are digital processor chips for a wide range of devices including personal computers, real-time audio and video communications systems, televisions, and residential gateways.

The investigation is based on a complaint filed by BIAX Corporation of Boulder, CO, on December 9, 2005, and amended on December 29, 2005. The complaint as amended alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain digital processors and digital processing systems, components thereof, and products containing same that infringe patents owned by BIAX. The complainant requests that the ITC issue a permanent exclusion order and permanent cease and desist orders.

The ITC has identified the following as respondents in this investigation:

Philips Semiconductors B.V. of the Netherlands;
Philips Consumer Electronics Services B.V. of the Netherlands;
Philips Consumer Electronics North America Corp. of Atlanta, GA; and
2Wire, Inc. of San Jose, CA

By instituting this investigation (337-TA-559), the ITC has not yet made any decision on the merits of the case. The case will be referred to the Honorable Sidney Harris, an ITC administrative law judge, who will schedule and hold an evidentiary hearing. Judge Harris will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation. ITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.