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ITC Xbox ruling

ITC Xbox ruling

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Published by: steven_musil on May 23, 2012
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05/24/2012

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PUBLICVERSIONUNITEDSTATESINTERNATIONALTRADECOMMISSIONWashington,D.C.CERTAINGAMINGANDENTERTAINMENTCONSOLES,RELATEDSOFTWARE,AND
COMPONENTSTHEREOF
Inv.No.337-TA-752IntheMatterofRECOMMENDEDDETERMINATIONONREMEDYANDBONDINGAdministrativeLawJudgeDavidP.Shaw
Pursuanttoanoticeofinvestigation,75Fed.Reg.80843(2010),thisistheRecommendedDeterminationonremedyinInvestigationNo.337-TA-752.Forthereasonsstatedherein,itisrecommendedthattheCommissionenteralimitedexclusionorderagainstinfringingMicrosoftproducts.
It
isfurtherrecommendedthattheCommissionissueaceaseanddesistorder.Additionally,itisrecommendedthatMicrosoftberequiredtopostabondforimportationofaccusedproductsduringthePresidentialreviewperiod.
 
PUBLICVERSION
I.Procedural
Background
TheCommission'sRulesprovidethatsubsequenttoaninitialdeterminatienonthequestionofviolationofsection337oftheTariffActof1930,asamended,19U.S.C.
§
1337,theadministrativelawjudgeshallissuearecommendeddeterminationcontainingfindingsoffactandrecommendationsconcerning:(1)theappropriateremedyintheeventthattheCommissionfindsaviolationofsection337,and(2)theamountofbondtobepostedbyrespondentsduringPresidentialreviewofCommissionactionundersection337(j).19C.F.R.
§
210.42(a)(1)(ii).OnApril23,2012,aninitialdetermination("ID")issuedinthisinvestigation,findingthataviolationofsection337oftheTariffAct,asamended,hasoccurredintheimportationintotheUnitedStates,thesaleforimportation,orthesalewithintheUnitedStatesafterimportation,ofcertaingamingandentertainmentconsoles,relatedsoftware,orcomponentsthereofthatinfringeassertedclaims1and12ofU.S.PatentNo.6,069,896;assertedclaims7,8,and10of:U.S.PatentNo.7,162,094;assertedclaim2ofU.S.PatentNo.6,980,596;andassertedclaims12
..1
and13ofU.S.PatentNo.5,357,571.
II.RemedyA.LimitedExclusionOrder
TheCommissionhasbroaddiscretioninselectingtheform,scope,andextentoftheremedyinasection337proceeding.
Viscofan,S.A.v.UnitedStatesInt'lTradeComm'n,787
1
ThecomplainantsareMotorolaMobility,Inc.ofLibertyville,IllinoisandGeneralInstrumentCorporationofHorsham,Pennsylvania(collectively,"Motorola").IDat1.TherespondentisMicrosoftCorporationofRedmond,Washington("Microsoft"),
Id.
AlthoughtheCommissionnamedtheOfficeofUnfairImportInvestigations("OUII")asapartyintheinvestigation,OUIIwithdrewfromparticipationinaccordancewiththeCommission'sStrategicHumanCapitalPlan.
See
75Fed.Reg.80843(2010);LetterfromOUIItotheAdministrativeLawJudge(Mar.3,2011):2
 
PUBLICVERSION
F.2d544,548(Fed.Cir.1986).2Alimitedexclusionorderdirectedtorespondents'infringingproductsisamongtheremediesthattheCommissionmayimpose.
See
19U.S.C.
§
1337(d).Inthisinvestigation,Motorolaseeksalimitedexclusionorder.MotorolaarguesthattheproperremedyisalimitedexclusionorderagainstMicrosoft,barringfromentryintotheUnitedStatesallgamingandentertainmentconsoles,relatedsoftware,andcomponentsthereofthatinfringeoneormoreoftheassertedclaimsofthepatents-in-suit.MotorolarequeststhatthelimitedexclusionorderapplynotonlytoMicrosoft,butalsotoits"affiliatedcompanies,parents,subsidiaries,orotherrelatedbusinessentities,ortheirsuccessorsorassigns."Compls.Br.at293.Microsoftarguesthat"itwouldbecontrarytothepublicinterestforanyremedyagainsttheXboxandrelatedaccessoriestoissue,"citing"onlytwoprimarycompetitorstoMicrosoft'sXboxgamingsystem:theSonyPlaystationandtheNintendoWii."Resp.Br.at287.Microsoft'sargumentthat
it
wouldbecontrarytothepublicinteresttoissueanexclusionorderagainstMicrosoft'sXboxproductsisnotpersuasive.OnNovember26,2010,theCommissionissued"NoticeofReceiptofComplaint;SolicitationofCommentsRelatingtothePublicInterest."75Fed.Reg.72838(2010).Microsoftdidnotfilearesponsetothesolicitation.Additionally,ithasnotbeenallegedorshownthatSonyorNintendowouldfailtomeetthedemandforconsumervideogamingconsolesintheeventthatanexclusionorderissued.Moreover,thereisastrongpublicinterestinenforcingintellectualpropertyrights;notenforcingthoserightsinlightofapotentialeconomicimpactoccursonlyinexceptional2
In
determiningwhethertoissueanexclusionorderoraceaseanddesistorder,theCommissionmustconsiderstatutorypublicinterestfactors.
CertainGroundFaultCircuitInterruptersandProductsContainingSame,
Inv.No.337-TA-615
("GFCIs"),
Comm'nOp.at21(Mar.26,2009).3

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