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ITC exclusion order on Motorola smartphones

ITC exclusion order on Motorola smartphones

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Published by: IDG News Service on Jul 18, 2012
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UNITEDSTATESINTERNATIONALTRADECOMMISSIONWashington,D.C.
IntheMatterof
CERTAINMOBILEDEVICES,..
ASSOCIATEDSOFTWARE,ANDInvestigationN0.337-TA-744
COMPONENTSTHEREOF
NOTICEOFACOMMISSIONFINALDETERMINATIONOFVIOLATIONOFSECTION337;ISSUANCEOFALIMITEDEXCLUSIONORDER;TERMINATIONOF
INVESTIGATION
AGENCY:U.S.InternationalTradeCommission.
ACTION:Notice.
SUMMARY:NoticeisherebygiventhattheU.S.InternationalTradeCommissionhasdeterminedthatthereisaviolationofsection337oftheTariffActof1930,asamended(19U.S.C.
§1337)byrespondentMotorolaMobility,Inc.ofLibertyville,Illinois(“Motorola”)inthe
above-captionedinvestigation.TheCommissionhasissuedalimitedexclusionorderdirectedtotheinfringingproductsofMotorolaandhasterminatedtheinvestigation.
FORFURTHERINFORMATIONCONTACT:MichaelLiberman,Esq.,OfficeoftheGeneral
Counsel,U.S.InternationalTradeCommission,500EStreet,S.W.,Washington,D.C.20436,
telephone(202)205-3115.Copiesofnon-confidentialdocumentsfiledinconnectionwiththisinvestigationareorwillbeavailableforinspectionduringofficialbusinesshours(8:45am.to
5:15pm.)intheOfficeoftheSecretary,U.S.InternationalTradeCommission,500EStreet,S.W.,Washington,D.C.20436,telephone(202)205-2000.Generalinformationconcerningthe
CommissionmayalsobeobtainedbyaccessingitsInternetserverathztg."//'www.sirc.gov.The
publicrecordforthisinvestigationmaybeviewedontheCommission'selectronicdocket(EDIS)
atling.‘//edi.§‘.site.gov.Hearing-impairedpersonsareadvisedthatinformationonthismattercan
beobtainedbycontactingtheCommission’sTDDterminalon(202)205-1810.
SUPPLEMENTARYINFORMATION:TheCommissioninstitutedthisinvestigationon
November5,2010,basedonacomplaintfiledbyMicrosoftCorporationofRedmond,Washington
(“Microsoft).75Fed.Reg.68379-80(Nov.5,2010).Thecomplaintallegesviolationsofsection337oftheTariffActof1930,asamended,19U.S.C.§1337,intheimportationintothe
UnitedStates,thesaleforimportation,andthesalewithintheUnitedStatesafterimportationofcertainmobiledevices,associatedsoftware,andcomponentsthereofbyreasonofinfringementof
U.S.PatentNos.5,579,517(“the‘517patent”);5,758,352(“the‘352patent”);6,621,746(“the
‘746patent”);6,826,762(“the‘762patent”);6,909,910(“the‘910patent”);7,644,376(“the‘376patent”);5,664,133(“the‘133patent”);6,578,054(“the‘054patent”);and6,370,566(“the‘S66
patent”)Subsequently,the‘S17andthe‘746patentswereterminatedfromtheinvestigation.
 
Thenoticeofinvestigation,asamended,namesMotorolaMobility,Inc.ofLibertyville,IllinoisandMotorola,lnc.ofSchaumburg,Illinoisasrespondents.Motorola,lnc.n/k/aMotorolaSolutionswasterminatedfromtheinvestigationbasedonwithdrawalofinfringementallegations
onJulyl2,20ll.
Thepresidingadministrativelawjudge(“ALI”)issuedthefinalinitialdetermination
(“ID”)onviolationinthisinvestigationonDecember20,201l.Heissuedhisrecommendeddeterminationonremedyandbondingonthesameday.TheALJfoundthataviolationofsection337hasoccurredintheimportationintotheUnitedStates,thesaleforimportation,orthesalewithintheUnitedStatesafterimportationofcertainmobiledevices,associatedsoftware,andcomponentsthereofcontainingsamebyreasonofinfringementofoneormoreofclaims1,2,5and6ofthe‘S66patent.BothComplainantandRespondentfiledtimelypetitionsforreviewofvariousportionsofthenalID,aswellastimelyresponsestothepetitions.
TheCommissiondetenninedtoreviewvariousportionsofthefinalIDandissuedaNotice
tothateffectdatedMarch2,2012.77Fed.Reg.l4043(Mar.8,2012).IntheNotice,the
CommissionalsosetascheduleforthefilingofwrittensubmissionsontheissuesunderreviewincludingcertainquestionsposedbytheCommission,andonremedy,thepublicinterest,andbonding.Thepartieshavebriefed,withinitialandreplysubmissions,theissuesunderreviewandtheissuesofremedy,thepublicinterest,andbonding.Publicinterestcommentswerealsoreceivedfromnon-partiesAssociationforCompetitiveTechnology,Inc.andGoogleInc.
9
Onreview,theCommissionhasdeterminedasfollows.(1)ToaffirrnwithmodificationstheALJ’sdeterminationthatMicrosoftmettheeconomicprongofthedomesticindustryrequirementwithrespecttoallofthe
presentlyassertedpatentsinthisinvestigation,i.e.,the‘352patent,the‘762patent,
the9l0patent;the376patent,thel33patent,the054patent,andthe566patent;
(2)WithrespecttothelD’sdeterminationregardingthetechnicalprongofthedomesticindustryrequirementwithrespecttoallofthepresentlyassertedpatents:
(a)toaffirmwithmodificationstheALJ’sdeterminationthatMicrosoft
failedtomeetthetechnicalprongofthedomesticindustryrequirementwithrespect
totheO54patent;T_
(b)toaffirmtheALJ’sdeterminationthatMicrosoftsatisfiedthetechnical
prongofthedomesticindustryrequirementwithrespecttothe‘S66,‘133,and‘910
patents;
(c)toreversetheALJ’sdeterminationthatMicrosoftfailedtomeetthe
technicalprongofthedomesticindustryrequirementwithrespecttothe‘352
patent;(d)toaffirmtheALJ’sdeterminationthatMicrosoftfailedtomeetthetechnicalprongofthedomesticindustryrequirementwithrespecttothe"762and
‘376patents;
2
 
(3)ToaffirmwithmodificationstheALJ’sdeterminationthattheassertedclaimsofthe‘566patentarenotinvalidduetoanticipationorobviousness;(4)ToreversetheALJ’sdeterminationthatMicrosoftfailedtocarryitsburdenof
showingthatMotorola’saccusedproductsinfringetheassertedclaimsofthe‘352
patentanddeterminethat,basedontherecord,MicrosoftprovedbyapreponderanceoftheevidencethatMotorola’saccusedproductsdirectlyinfringe
the‘352patent;
(5)ToaffirmtheALJsdeterminationthatMicrosoftfailedtoprovebya
preponderanceoftheevidencethatMotorolainducedinfringementofeachofthe
‘O54,‘762,‘376,‘133,and‘9lOpatents,andtoaffirmwithmodificationstheALJ’s
detenninationthatMicrosoftfailedtoprovebyapreponderanceoftheevidencethatMotorolainducedinfringementofeachofthe‘S66and‘352patents.TheCommissionhasdeterminedthattheappropriatefonnofreliefinthisinvestigationisalimitedexclusionorderprohibitingtheunlicensedentryforconsumptionofmobiledevices,associatedsoftwareandcomponentsthereofcoveredbyclaimsl,2,5,or6oftheUnitedStatesPatentNo.6,370,566andthataremanufacturedabroadbyoronbehalfof,orimportedbyoron
behalfoflMotorola.Theorderprovidesanexceptionforservice,repair,orreplacementarticles
foruseinservicing,repairing,orreplacingmobiledevicesunderWarrantyorinsurancecontract.
TheCommissionhasfurtherdeterminedthatthepublicinterestfactorsenumeratedin
section337(d)(l)(l9U.S.C.§l337(d)(l))donotprecludeissuanceofthelimitedexclusionorder.
Finally,theCommissiondeterminedthatMotorolaisrequiredtopostabondsetatareasonable
royaltyrateintheamountof$0.33perdeviceenteredforconsumptionduringtheperiodof
Presidentialreview.TheCommission’sorderwasdeliveredtothePresidentandtheUnitedStatesTradeRepresentativeonthedayofitsissuance.TheCommissionhasthereforeterminatedthisinvestigation.TheauthorityfortheCon1mission’sdeterminationiscontainedinsection337oftheTariffActof1930,asamended(l9U.S.C.§1337),andsections210.41-.42,210.50oftheCommission’sRulesofPracticeand
Procedure(19CFR§210.41-.42,210.50).
%'m
JamesR.I-iolbein
SecretarytotheCommissionByorderoftheCommission.Issued:Mayl8,2012
3

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