81 FR 40348 - Certain Graphics Processing Chips, Systems on a Chip, and Products Containing the Same; Commission Determination To Grant a Joint Motion To Terminate the Investigation on the Basis of a Settlement Agreement; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 81, Issue 119 (June 21, 2016)

Notice is hereby given that the U.S. International Trade Commission has determined to grant a joint motion to terminate the above-captioned investigation based on a settlement agreement.

[Federal Register Volume 81, Number 119 (Tuesday, June 21, 2016)]
[Notices]
[Pages 40348-40350]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14657]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-941]


Certain Graphics Processing Chips, Systems on a Chip, and 
Products Containing the Same; Commission Determination To Grant a Joint 
Motion To Terminate the Investigation on the Basis of a Settlement 
Agreement; Termination of the Investigation

AGENCY: U.S. International Trade Commission.

[[Page 40349]]


ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined to grant a joint motion to terminate the 
above-captioned investigation based on a settlement agreement.

FOR FURTHER INFORMATION CONTACT: Ron Traud, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, (202) 205-3427. 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 Street SW., Washington, DC 20436, (202) 205-2000. 
General information concerning the Commission may also be obtained at 
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 at (202) 205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on December 30, 2014, based on a complaint filed by Samsung Electronics 
Co., Ltd. of Gyeonggi-do, Republic of Korea, and Samsung Austin 
Semiconductor, LLC of Austin, Texas (collectively, Complainants). 79 FR 
78477-78 (Dec. 30, 2014). The complaint alleges 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 graphics 
processing chips (GPUs), systems on a chip (SoCs), and products 
containing the same by reason of infringement of one or more of claims 
1-4, 6, and 19-21 of U.S. Patent No. 6,147,385 (the '385 patent); claim 
10 of U.S. Patent No. 6,173,349 (the '349 patent); claims 1, 2, 4, 19, 
20, and 22 of U.S. Patent No. 7,056,776 (the '776 patent); and claims 
1-3, 7-9, 12-15, 17, and 19 of U.S. Patent No. 7,804,734 (the '734 
patent). Id. The notice of investigation named as respondents NVIDIA 
Corporation (NVIDIA) of Santa Clara, California; Biostar Microtech 
International Corp. of New Taipei, Taiwan; Biostar Microtech U.S.A. 
Corp. of City of Industry, California; Elitegroup Computer Systems Co. 
Ltd. of Taipei, Taiwan; Elitegroup Computer Systems, Inc. of Newark, 
California; EVGA Corp. of Brea, California; Fuhu, Inc. of El Segundo, 
California; Jaton Corp. of Fremont, California; Mad Catz, Inc. of San 
Diego, California; OUYA, Inc. of Santa Monica, California; Sparkle 
Computer Co., Ltd. of New Taipei City, Taiwan; Toradex, Inc. of 
Seattle, Washington; Wikipad, Inc. of Westlake Village, California; 
ZOTAC International (MCO) Ltd of New Territories, Hong Kong; and ZOTAC 
USA, Inc. of Chino, California (collectively, Respondents). Id. The 
Office of Unfair Import Investigations (OUII) is also a party to this 
investigation. Id.
    On May 1, 2015, the Commission determined not to review an initial 
determination terminating the investigation as to respondent Wikipad, 
Inc. Notice of Commission Determination Not to Review an Initial 
Determination Terminating the Investigation as to Respondent Wikipad, 
Inc. Based on a Consent Order Stipulation, Consent Order, and 
Settlement Agreement; Issuance of Consent Order (May 1, 2015) 
(determining not to review Order No. 6 (Apr. 1, 2015)). On July 1, 
2015, the Commission determined not to review an initial determination 
terminating the investigation with respect to the '776 patent. Notice 
of Commission Determination Not to Review an Initial Determination 
Terminating the Investigation with Respect to U.S. Patent No. 7,056,776 
(July 1, 2015) (determining not to review Order No. 9 (June 9, 2015)). 
On August 13, 2015, the Commission determined not to review an initial 
determination finding that the economic prong of the domestic industry 
requirement has been satisfied. Notice of a Commission Determination 
Not to Review an Initial Determination That the Economic Prong of the 
Domestic Industry Requirement Has Been Satisfied (Aug. 13, 2015) 
(determining not review Order No. 12 (July 16, 2015)). On September 17, 
2015, the Commission determined not to review (1) an initial 
determination terminating the investigation as to claims 19-21 of the 
'385 patent and claims 7-9, 12-15, 17, and 19 of the '734 patent; and 
(2) an initial determination terminating the investigation as to 
respondent ZOTAC International (MCO) Ltd. Notice of Commission Decision 
Not to Review Two Initial Determinations That Terminated the 
Investigation as to Certain Asserted Patent Claims and as to One 
Respondent (Sept. 17, 2015) (determining not to review Order No. 23 
(Aug. 26, 2015) and Order No. 25 (Aug. 26, 2015)).
    The following claims remained at issue for consideration by the 
ALJ: Claims 1-4 and 6 of the '385 patent; claim 10 of the '349 patent; 
and claims 1 and 3 of the '734 patent. On December 22, 2015, the ALJ 
issued his final ID, which found a violation of all three remaining 
patents. See ID at 1. On January 5, 2016, the ALJ issued his 
recommended determination on remedy and bond (RD), which recommended 
the issuance of a limited exclusion order covering all of the 
infringing articles imported, sold for importation, or sold after 
importation by the remaining respondents. RD at 9. The RD also 
recommended the issuance of cease and desist orders to certain domestic 
respondents. Id. at 14. The RD additionally set a bond in the amount of 
4% of the average value of the accused GPUs and SoCs. Id. at 17.
    The remaining respondents and OUII filed petitions for review, and 
OUII, and Complainants filed responses to the petitions. On February 
24, 2016, the Commission determined to review some of the petitioned 
issues. 81 FR 10654 (Mar. 1, 2016). On March 7, 2016, the parties filed 
written submissions on the issues under review, remedy, the public 
interest, and bonding. On March 14, 2016, the parties filed reply 
submissions. No submissions were received from the public.
    On April 29, 2016, and prior to the Commission's final 
determination, the private parties indicated that they had reached a 
settlement agreement. On May 16, 2016, the private parties filed a 
joint motion to terminate the investigation on the basis of that 
settlement pursuant to Commission Rule Sec.  210.21(b). An amended 
version of the joint motion (the Corrected Joint Motion) was filed on 
May 19, 2016. The motion to terminate is based on a Memorandum of 
Understanding Regarding Settlement Agreement (MOU), a binding agreement 
between Samsung Electronics and NVIDIA. The Corrected Joint Motion 
declares that the MOU ``completely resolves the disputes between all 
parties with respect to the asserted patents,'' that there are ``no 
other agreements, written or oral, express or implied, between them 
concerning the subject matter of this investigation,'' and that ``it is 
in the interest of the public and administrative economy to grant this 
motion.'' Corrected Joint Mtn. at 2. The Corrected Joint Motion 
includes confidential and public versions of the MOU. On May 26, 2016, 
OUII filed a submission supporting the termination of the 
investigation. No other party filed a response to the Corrected Joint 
Motion.
    The Commission has determined that the Corrected Joint Motion 
complies with the requirements of section 210.21(b)(1) of the 
Commission's Rules

[[Page 40350]]

of Practice and Procedure (19 CFR 210.21(b)(1)), and that there are no 
extraordinary circumstances that would prevent the requested 
termination. The Commission also finds that granting the Corrected 
Joint Motion would not be contrary to the public interest pursuant to 
section 210.50(b)(2) of the Commission's Rules of Practice and 
Procedure (19 CFR 210.50(b)(2)). Accordingly, the Commission hereby 
grants the Corrected Joint Motion. This investigation is terminated.
    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: June 16, 2016.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2016-14657 Filed 6-20-16; 8:45 am]
 BILLING CODE 7020-02-P