82_FR_56495 82 FR 56268 - Certain Digital Video Receivers and Hardware and Software Components Thereof Notice of the Commission's Final Determination Finding a Violation of Section 337; Issuance of a Limited Exclusion Order and Cease and Desist Orders; Denial of Petition Requesting Reconsideration of Commission Determination Finding Petition of Certain Issues To Be Waived; Termination of the Investigation

82 FR 56268 - Certain Digital Video Receivers and Hardware and Software Components Thereof Notice of the Commission's Final Determination Finding a Violation of Section 337; Issuance of a Limited Exclusion Order and Cease and Desist Orders; Denial of Petition Requesting Reconsideration of Commission Determination Finding Petition of Certain Issues To Be Waived; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 82, Issue 227 (November 28, 2017)

Page Range56268-56269
FR Document2017-25625

Notice is hereby given that the U.S. International Trade Commission (the ``Commission'') has found a violation of section 337 in this investigation and has issued a limited exclusion order (``LEO'') prohibiting importation of certain digital video receivers and hardware and software components thereof, and has issued cease and desist orders (``CDOs'') directed to the Comcast respondents. This investigation is terminated.

Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)
[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Notices]
[Pages 56268-56269]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25625]



[[Page 56268]]

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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1001]


Certain Digital Video Receivers and Hardware and Software 
Components Thereof Notice of the Commission's Final Determination 
Finding a Violation of Section 337; Issuance of a Limited Exclusion 
Order and Cease and Desist Orders; Denial of Petition Requesting 
Reconsideration of Commission Determination Finding Petition of Certain 
Issues To Be Waived; Termination of the Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission (the ``Commission'') has found a violation of section 337 in 
this investigation and has issued a limited exclusion order (``LEO'') 
prohibiting importation of certain digital video receivers and hardware 
and software components thereof, and has issued cease and desist orders 
(``CDOs'') directed to the Comcast respondents. This investigation is 
terminated.

FOR FURTHER INFORMATION CONTACT: Ron Traud, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW., 
Washington, DC 20436, telephone 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, 
telephone 202-205-2000. General information concerning the Commission 
may also be obtained by accessing its Internet server at https://www.usitc.gov. The public record for this investigation may be viewed 
on the Commission's electronic docket (``EDIS'') at https://edis.usitc.gov. Hearing-impaired persons are advised that information 
on this matter can be obtained by contacting the Commission's TDD 
terminal, telephone 202-205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on May 26, 2016, based on a complaint filed on behalf of Rovi 
Corporation and Rovi Guides, Inc. (collectively, ``Rovi''), both of San 
Carlos, California. 81 FR 33547-48 (May 26, 2016). The complaint, as 
amended, alleges violations of section 337 of the Tariff Act of 1930, 
as amended, 19 U.S.C. 1337 (``section 337''), by reason of infringement 
of certain claims of U.S. Patent Nos. 8,006,263 (``the '263 patent''); 
8,578,413 (``the '413 patent''); 8,046,801 (``the '801 patent''); 
8,621,512 (``the '512 patent''); 8,768,147 (``the '147 patent''); 
8,566,871 (``the '871 patent''); and 6,418,556 (``the '556 patent''). 
The complaint further alleges that a domestic industry exists. Id. at 
33548.
    The Commission's notice of investigation named sixteen respondents 
(collectively, ``Respondents''). The respondents are Comcast 
Corporation of Philadelphia, PA; Comcast Cable Communications, LLC of 
Philadelphia, PA; Comcast Cable Communications Management, LLC of 
Philadelphia, PA; Comcast Business Communications, LLC of Philadelphia, 
PA; Comcast Holdings Corporation of Philadelphia, PA; Comcast Shared 
Services, LLC of Chicago, IL (collectively, ``Comcast''); Technicolor 
SA of Issy-les-Moulineaux, France; Technicolor USA, Inc. of 
Indianapolis, IN; Technicolor Connected Home USA LLC of Indianapolis, 
IN (collectively, ``Technicolor''); Pace Ltd. of Saltaire, England (now 
ARRIS Global Ltd.); Pace Americas, LLC of Boca Raton, FL; ARRIS 
International plc of Suwanee, GA; ARRIS Group Inc. of Suwanee, GA; 
ARRIS Technology, Inc. of Horsham, PA; ARRIS Enterprises Inc. of 
Suwanee, GA (now ARRIS Enterprises LLC); and ARRIS Solutions, Inc. of 
Suwanee, GA (collectively, ``ARRIS''). 81 FR at 33548; see also 82 FR 
38934 (Aug. 16, 2017). The Office of Unfair Import Investigations is 
not a party to this investigation. 81 FR at 33548.
    Prior to the evidentiary hearing, Rovi withdrew its allegations as 
to certain patent claims. See Order No. 17 (Sept. 23, 2016), 
unreviewed, Comm'n Notice (Oct. 21, 2016); Order No. 25 (Nov. 14, 
2016), unreviewed, Comm'n Notice (Dec. 2, 2016); Order No. 27 (Dec. 5, 
2016), unreviewed, Comm'n Notice (Dec. 28, 2016). Rovi proceeded at the 
evidentiary hearing on the following patents and claims: Claims 7, 18, 
and 40 of the '556 patent; claims 1, 2, 14, and 17 of the '263 patent; 
claims 1, 5, 10, and 15 of the '801 patent; claims 12, 17, and 18 of 
the '871 patent; claims 1, 3, 5, 9, 10, 14, and 18 of the '413 patent; 
and claims 1, 10, 13, and 22 of the '512 patent.
    On May 26, 2017, the administrative law judge (the ``ALJ'') issued 
the final initial determination (the ``Final ID''), which finds a 
violation of section 337 by Respondents in connection with the asserted 
claims of the '263 and '413 patents. The Final ID finds no violation of 
section 337 in connection with the asserted claims of the '556, '801, 
'871, and '512 patents. The ALJ recommended that, subject to any public 
interest determinations of the Commission, the Commission should issue 
an LEO directed to certain accused products, that CDOs issue to 
Respondents, and that the Commission should not require any bond during 
the Presidential review period (see 19 U.S.C. 1337(j)).
    On June 12, 2017, Rovi and Respondents filed with the Commission 
petitions for review of the Final ID. Respondents petitioned thirty-two 
of the Final ID's conclusions, and Rovi petitioned seven of the Final 
ID's conclusions. On June 20, 2017, the parties filed responsive 
submissions. On July 11, 2017, Rovi and Respondents filed statements on 
the public interest. The Commission also received and considered 
numerous comments on the public interest from non-parties. On July 5, 
2017, Rovi and the ARRIS respondents filed a Joint Unopposed Motion 
for, and Memorandum in Support of, Leave to Amend the Complaint and 
Notice of Investigation to Correct Corporate Names of Two ARRIS 
Respondents. The motion indicated that ARRIS Enterprises, Inc. has 
changed its name to ARRIS Enterprises LLC and that Pace Ltd. has 
changed its name to ARRIS Global Ltd. And, on July 25, 2017, Comcast 
submitted with the Office of the Secretary a letter including 
supplemental disclosure and representations. On July 31, 2017, Rovi 
submitted with the Office of the Secretary a response thereto. On 
August 9, 2017, Comcast filed a response to Rovi's submission.
    On August 10, 2017, and after having reviewed the record, including 
the petitions and responses thereto, the Commission determined to 
review the Final ID in part. 82 FR 38934-36 (Aug. 16, 2017) (the 
``Notice of Review''). In particular, the Commission determined to 
review the following:

    (1) The Final ID's determination that Comcast is an importer of 
the accused products (Issue 1 in Respondents' Petition for Review).
    (2) The Final ID's determination that Comcast has not sold 
accused products in the United States after the importation of those 
products into the United States (the issue discussed in section III 
of Rovi's Petition for Review).
    (3) The Final ID's determination that the accused Legacy 
products are ``articles that infringe'' (Issue 2 in Respondents' 
Petition for Review).
    (4) The issue of whether the X1 products are ``articles that 
infringe'' (Issue 3 in Respondents' Petition for Review), the issue 
of direct infringement of the '263 and '413 patents by the X1 
accused products (Issue 5 in Respondents' Petition for Review), and 
the issue of ``the nature and scope of the violation found'' (the 
issue discussed in

[[Page 56269]]

section X of Respondents' Petition for Review).
    (5) The issue of whether Comcast's two alternative designs 
infringe the '263 and '413 patents (Issue 4 in Respondents' Petition 
for Review).
    (6) The Final ID's claim construction of ``cancel a function of 
the second tuner to permit the second tuner to perform the requested 
tuning operation'' in the '512 patent, and the Final ID's 
infringement determinations as to that patent (Issue 26 in 
Respondents' Petition for Review).
    (7) The Final ID's conclusion that the asserted claims of the 
'512 patent are invalid as obvious (the issue discussed in section 
VI.B.4 of Rovi's Petition for Review).
    (8) The issue of whether the ARRIS-Rovi Agreement provides a 
defense to the allegations against the ARRIS respondents (the issue 
discussed in section XI of Respondents' Petition for Review).
    (9) The Final ID's conclusion that Rovi did not establish the 
economic prong of the domestic industry requirement based on patent 
licensing (the issue discussed in section IV of Rovi's Petition for 
Review).

Id. at 38935. The Commission determined to not review the remainder of 
the Final ID. Id. The Commission additionally concluded that 
Respondents' petition of certain issues decided in the Final ID was 
improper, and therefore, those assignments of error were waived. Id. In 
the Notice of Review, the Commission also granted the motion to correct 
the corporate names of two of the respondents and determined to reopen 
the evidentiary record and accept the supplemental disclosure, response 
thereto, and reply to the response. Id. at 38934-35. The Commission 
requested briefing on some of the issues under review and also on 
remedy, the public interest, and bonding. Id. at 38935-36.
    On August 23, 2017, Respondents filed a Petition for 
Reconsideration of the Commission's Determination of Waiver as to 
Certain Issues Specified in Respondents' Petition for Review or, 
Alternatively, Application of Waiver to Issues Raised in Rovi's 
Petition for Review. On August 30, 2017, Rovi filed a response thereto. 
The Commission has determined to deny that petition.
    On August 24, 2017, Rovi and Respondents filed their written 
submissions on the issues under review and on remedy, public interest, 
and bonding, and on August 31, 2017, the parties filed their reply 
submissions.
    Having examined the record in this investigation, the Commission 
has determined to affirm the Final ID's conclusion that Comcast has 
violated section 337 in connection with the asserted claims of the '263 
and '413 patents.
    The Commission has determined to affirm the Final ID in part, 
affirm the Final ID with modifications in part, reverse the Final ID in 
part, vacate the Final ID in part, and take no position as to certain 
issues under review. More particularly, the Commission affirms the 
Final ID's determination that Comcast imports the accused X1 set-top 
boxes (``STBs''), and takes no position as to whether Comcast is an 
importer of the Legacy STBs. The Commission also takes no position on 
as to whether Comcast sells the accused products after importation.
    The Commission concludes that there is no section 337 violation as 
to the Legacy STBs. Regarding the X1 STBs, the Commission affirms the 
Final ID's conclusion that Comcast's customers directly infringe the 
'263 and '413 patents. Thus, the Commission affirms the Final ID's 
conclusion that complainant Rovi has established a violation by Comcast 
as to those patents and the X1 STBs.
    The Commission also takes the following actions. The Commission 
vacates the Final ID's conclusion that Comcast's two alternative 
designs infringe the '263 and '413 patents and instead concludes that 
those designs are too hypothetical to adjudicate at this time. The 
Commission modifies and affirms the Final ID's claim construction of 
the claim term ``cancel a function of the second tuner to permit the 
second tuner to perform the requested tuning operation'' in the '512 
patent and affirms the Final ID's infringement determinations as to 
that patent. The Commission modifies and affirms the Final ID's 
conclusion that the asserted claims of the '512 patent are invalid as 
obvious. The Commission takes no position as to whether the ARRIS-Rovi 
Agreement provides a defense to the allegations against ARRIS, and as 
to whether Rovi established the economic prong of the domestic industry 
requirement based on patent licensing. The Commission adopts the 
remainder of the Final ID to the extent that it does not conflict with 
the Commission's opinion or to the extent it is not expressly addressed 
in the Commission's opinion.
    Having found a violation of section 337 in this investigation by 
Comcast with respect to the '263 and '413 patents, the Commission has 
determined that the appropriate form of relief is (1) a LEO, that 
subject to certain exceptions provided therein, prohibits the 
unlicensed entry of certain digital video receivers and hardware and 
software components thereof that infringe one or more of claims 1, 2, 
14, and 17 of the '263 patent and claims 1, 3, 5, 9, 10, 14, and 18 of 
the '413 patent that are manufactured by, or on behalf of, or are 
imported by or on behalf of Comcast or any of its affiliated companies, 
parents, subsidiaries, agents, or other related business entities, or 
their successors or assigns; and (2) CDOs that, subject to certain 
exceptions provided therein, prohibit Comcast from conducting any of 
the following activities in the United States: importing, selling, 
offering for sale, leasing, offering for lease, renting, offering for 
rent, marketing, advertising, distributing, transferring (except for 
exportation), and soliciting U.S. agents or distributors for imported 
covered products; and aiding or abetting other entities in the 
importation, sale for importation, sale after importation, lease after 
importation, rent after importation, transfer, or distribution of 
covered products.
    The Commission has also determined that the public interest factors 
enumerated in section 337(d) and (f) (19 U.S.C. 1337(d) and (f)) do not 
preclude issuance of the LEO or CDOs. Finally, the Commission has 
determined that the excluded digital video receivers and hardware and 
software components thereof may be imported and sold in the United 
States during the period of Presidential review with the posting of a 
bond in the amount of zero percent of the entered value of the 
infringing goods (i.e., no bond). The Commission's orders and opinion 
were delivered to the President and to the United States Trade 
Representative on the day of their issuance.
    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: November 21, 2017.
Katherine M. Hiner,
Supervisory Attorney.
[FR Doc. 2017-25625 Filed 11-27-17; 8:45 am]
 BILLING CODE 7020-02-P



                                               56268                      Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices

                                               INTERNATIONAL TRADE                                     Patent Nos. 8,006,263 (‘‘the ’263                     public interest determinations of the
                                               COMMISSION                                              patent’’); 8,578,413 (‘‘the ’413 patent’’);           Commission, the Commission should
                                                                                                       8,046,801 (‘‘the ’801 patent’’); 8,621,512            issue an LEO directed to certain accused
                                               [Investigation No. 337–TA–1001]
                                                                                                       (‘‘the ’512 patent’’); 8,768,147 (‘‘the ’147          products, that CDOs issue to
                                               Certain Digital Video Receivers and                     patent’’); 8,566,871 (‘‘the ’871 patent’’);           Respondents, and that the Commission
                                               Hardware and Software Components                        and 6,418,556 (‘‘the ’556 patent’’). The              should not require any bond during the
                                               Thereof Notice of the Commission’s                      complaint further alleges that a                      Presidential review period (see 19
                                               Final Determination Finding a Violation                 domestic industry exists. Id. at 33548.               U.S.C. 1337(j)).
                                                                                                          The Commission’s notice of                            On June 12, 2017, Rovi and
                                               of Section 337; Issuance of a Limited
                                                                                                       investigation named sixteen                           Respondents filed with the Commission
                                               Exclusion Order and Cease and Desist
                                                                                                       respondents (collectively,                            petitions for review of the Final ID.
                                               Orders; Denial of Petition Requesting
                                                                                                       ‘‘Respondents’’). The respondents are                 Respondents petitioned thirty-two of the
                                               Reconsideration of Commission
                                                                                                       Comcast Corporation of Philadelphia,                  Final ID’s conclusions, and Rovi
                                               Determination Finding Petition of
                                                                                                       PA; Comcast Cable Communications,                     petitioned seven of the Final ID’s
                                               Certain Issues To Be Waived;                            LLC of Philadelphia, PA; Comcast Cable
                                               Termination of the Investigation                                                                              conclusions. On June 20, 2017, the
                                                                                                       Communications Management, LLC of                     parties filed responsive submissions. On
                                               AGENCY: U.S. International Trade                        Philadelphia, PA; Comcast Business                    July 11, 2017, Rovi and Respondents
                                               Commission.                                             Communications, LLC of Philadelphia,                  filed statements on the public interest.
                                               ACTION: Notice.                                         PA; Comcast Holdings Corporation of                   The Commission also received and
                                                                                                       Philadelphia, PA; Comcast Shared                      considered numerous comments on the
                                               SUMMARY:    Notice is hereby given that                 Services, LLC of Chicago, IL                          public interest from non-parties. On July
                                               the U.S. International Trade                            (collectively, ‘‘Comcast’’); Technicolor              5, 2017, Rovi and the ARRIS
                                               Commission (the ‘‘Commission’’) has                     SA of Issy-les-Moulineaux, France;                    respondents filed a Joint Unopposed
                                               found a violation of section 337 in this                Technicolor USA, Inc. of Indianapolis,                Motion for, and Memorandum in
                                               investigation and has issued a limited                  IN; Technicolor Connected Home USA                    Support of, Leave to Amend the
                                               exclusion order (‘‘LEO’’) prohibiting                   LLC of Indianapolis, IN (collectively,                Complaint and Notice of Investigation to
                                               importation of certain digital video                    ‘‘Technicolor’’); Pace Ltd. of Saltaire,              Correct Corporate Names of Two ARRIS
                                               receivers and hardware and software                     England (now ARRIS Global Ltd.); Pace                 Respondents. The motion indicated that
                                               components thereof, and has issued                      Americas, LLC of Boca Raton, FL;                      ARRIS Enterprises, Inc. has changed its
                                               cease and desist orders (‘‘CDOs’’)                      ARRIS International plc of Suwanee,                   name to ARRIS Enterprises LLC and that
                                               directed to the Comcast respondents.                    GA; ARRIS Group Inc. of Suwanee, GA;                  Pace Ltd. has changed its name to
                                               This investigation is terminated.                       ARRIS Technology, Inc. of Horsham,                    ARRIS Global Ltd. And, on July 25,
                                               FOR FURTHER INFORMATION CONTACT: Ron
                                                                                                       PA; ARRIS Enterprises Inc. of Suwanee,                2017, Comcast submitted with the
                                               Traud, Office of the General Counsel,                   GA (now ARRIS Enterprises LLC); and                   Office of the Secretary a letter including
                                               U.S. International Trade Commission,                    ARRIS Solutions, Inc. of Suwanee, GA                  supplemental disclosure and
                                               500 E Street SW., Washington, DC                        (collectively, ‘‘ARRIS’’). 81 FR at 33548;            representations. On July 31, 2017, Rovi
                                               20436, telephone 202–205–3427. Copies                   see also 82 FR 38934 (Aug. 16, 2017).                 submitted with the Office of the
                                                                                                       The Office of Unfair Import                           Secretary a response thereto. On August
                                               of non-confidential documents filed in
                                                                                                       Investigations is not a party to this                 9, 2017, Comcast filed a response to
                                               connection with this investigation are or
                                                                                                       investigation. 81 FR at 33548.
                                               will be available for inspection during                                                                       Rovi’s submission.
                                                                                                          Prior to the evidentiary hearing, Rovi
                                               official business hours (8:45 a.m. to 5:15                                                                       On August 10, 2017, and after having
                                                                                                       withdrew its allegations as to certain
                                               p.m.) in the Office of the Secretary, U.S.              patent claims. See Order No. 17 (Sept.                reviewed the record, including the
                                               International Trade Commission, 500 E                   23, 2016), unreviewed, Comm’n Notice                  petitions and responses thereto, the
                                               Street SW., Washington, DC 20436,                       (Oct. 21, 2016); Order No. 25 (Nov. 14,               Commission determined to review the
                                               telephone 202–205–2000. General                         2016), unreviewed, Comm’n Notice                      Final ID in part. 82 FR 38934–36 (Aug.
                                               information concerning the Commission                   (Dec. 2, 2016); Order No. 27 (Dec. 5,                 16, 2017) (the ‘‘Notice of Review’’). In
                                               may also be obtained by accessing its                   2016), unreviewed, Comm’n Notice                      particular, the Commission determined
                                               Internet server at https://www.usitc.gov.               (Dec. 28, 2016). Rovi proceeded at the                to review the following:
                                               The public record for this investigation                evidentiary hearing on the following                     (1) The Final ID’s determination that
                                               may be viewed on the Commission’s                       patents and claims: Claims 7, 18, and 40              Comcast is an importer of the accused
                                               electronic docket (‘‘EDIS’’) at https://                of the ’556 patent; claims 1, 2, 14, and              products (Issue 1 in Respondents’ Petition for
                                               edis.usitc.gov. Hearing-impaired                        17 of the ’263 patent; claims 1, 5, 10,               Review).
                                               persons are advised that information on                                                                          (2) The Final ID’s determination that
                                                                                                       and 15 of the ’801 patent; claims 12, 17,
                                               this matter can be obtained by                                                                                Comcast has not sold accused products in the
                                                                                                       and 18 of the ’871 patent; claims 1, 3,               United States after the importation of those
                                               contacting the Commission’s TDD                         5, 9, 10, 14, and 18 of the ’413 patent;              products into the United States (the issue
                                               terminal, telephone 202–205–1810.                       and claims 1, 10, 13, and 22 of the ’512              discussed in section III of Rovi’s Petition for
                                               SUPPLEMENTARY INFORMATION: The                          patent.                                               Review).
                                               Commission instituted this investigation                   On May 26, 2017, the administrative                   (3) The Final ID’s determination that the
                                               on May 26, 2016, based on a complaint                   law judge (the ‘‘ALJ’’) issued the final              accused Legacy products are ‘‘articles that
                                               filed on behalf of Rovi Corporation and                 initial determination (the ‘‘Final ID’’),             infringe’’ (Issue 2 in Respondents’ Petition
                                               Rovi Guides, Inc. (collectively, ‘‘Rovi’’),             which finds a violation of section 337                for Review).
ethrower on DSK3G9T082PROD with NOTICES




                                               both of San Carlos, California. 81 FR                   by Respondents in connection with the                    (4) The issue of whether the X1 products
                                               33547–48 (May 26, 2016). The                            asserted claims of the ’263 and ’413                  are ‘‘articles that infringe’’ (Issue 3 in
                                                                                                                                                             Respondents’ Petition for Review), the issue
                                               complaint, as amended, alleges                          patents. The Final ID finds no violation              of direct infringement of the ’263 and ’413
                                               violations of section 337 of the Tariff                 of section 337 in connection with the                 patents by the X1 accused products (Issue 5
                                               Act of 1930, as amended, 19 U.S.C. 1337                 asserted claims of the ’556, ’801, ’871,              in Respondents’ Petition for Review), and the
                                               (‘‘section 337’’), by reason of                         and ’512 patents. The ALJ                             issue of ‘‘the nature and scope of the
                                               infringement of certain claims of U.S.                  recommended that, subject to any                      violation found’’ (the issue discussed in



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                                                                          Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices                                                56269

                                               section X of Respondents’ Petition for                  Final ID with modifications in part,                  of, or are imported by or on behalf of
                                               Review).                                                reverse the Final ID in part, vacate the              Comcast or any of its affiliated
                                                  (5) The issue of whether Comcast’s two               Final ID in part, and take no position as             companies, parents, subsidiaries, agents,
                                               alternative designs infringe the ’263 and ’413          to certain issues under review. More                  or other related business entities, or
                                               patents (Issue 4 in Respondents’ Petition for
                                               Review).
                                                                                                       particularly, the Commission affirms the              their successors or assigns; and (2)
                                                  (6) The Final ID’s claim construction of             Final ID’s determination that Comcast                 CDOs that, subject to certain exceptions
                                               ‘‘cancel a function of the second tuner to              imports the accused X1 set-top boxes                  provided therein, prohibit Comcast from
                                               permit the second tuner to perform the                  (‘‘STBs’’), and takes no position as to               conducting any of the following
                                               requested tuning operation’’ in the ’512                whether Comcast is an importer of the                 activities in the United States:
                                               patent, and the Final ID’s infringement                 Legacy STBs. The Commission also                      importing, selling, offering for sale,
                                               determinations as to that patent (Issue 26 in           takes no position on as to whether                    leasing, offering for lease, renting,
                                               Respondents’ Petition for Review).                      Comcast sells the accused products after              offering for rent, marketing, advertising,
                                                  (7) The Final ID’s conclusion that the               importation.                                          distributing, transferring (except for
                                               asserted claims of the ’512 patent are invalid             The Commission concludes that there
                                               as obvious (the issue discussed in section
                                                                                                                                                             exportation), and soliciting U.S. agents
                                                                                                       is no section 337 violation as to the                 or distributors for imported covered
                                               VI.B.4 of Rovi’s Petition for Review).
                                                  (8) The issue of whether the ARRIS-Rovi
                                                                                                       Legacy STBs. Regarding the X1 STBs,                   products; and aiding or abetting other
                                               Agreement provides a defense to the                     the Commission affirms the Final ID’s                 entities in the importation, sale for
                                               allegations against the ARRIS respondents               conclusion that Comcast’s customers                   importation, sale after importation, lease
                                               (the issue discussed in section XI of                   directly infringe the ’263 and ’413                   after importation, rent after importation,
                                               Respondents’ Petition for Review).                      patents. Thus, the Commission affirms                 transfer, or distribution of covered
                                                  (9) The Final ID’s conclusion that Rovi did          the Final ID’s conclusion that                        products.
                                               not establish the economic prong of the                 complainant Rovi has established a                       The Commission has also determined
                                               domestic industry requirement based on                  violation by Comcast as to those patents
                                               patent licensing (the issue discussed in
                                                                                                                                                             that the public interest factors
                                                                                                       and the X1 STBs.                                      enumerated in section 337(d) and (f) (19
                                               section IV of Rovi’s Petition for Review).                 The Commission also takes the                      U.S.C. 1337(d) and (f)) do not preclude
                                               Id. at 38935. The Commission                            following actions. The Commission                     issuance of the LEO or CDOs. Finally,
                                               determined to not review the remainder                  vacates the Final ID’s conclusion that                the Commission has determined that the
                                               of the Final ID. Id. The Commission                     Comcast’s two alternative designs                     excluded digital video receivers and
                                               additionally concluded that                             infringe the ’263 and ’413 patents and                hardware and software components
                                               Respondents’ petition of certain issues                 instead concludes that those designs are              thereof may be imported and sold in the
                                               decided in the Final ID was improper,                   too hypothetical to adjudicate at this                United States during the period of
                                               and therefore, those assignments of error               time. The Commission modifies and                     Presidential review with the posting of
                                               were waived. Id. In the Notice of                       affirms the Final ID’s claim construction             a bond in the amount of zero percent of
                                               Review, the Commission also granted                     of the claim term ‘‘cancel a function of              the entered value of the infringing goods
                                               the motion to correct the corporate                     the second tuner to permit the second                 (i.e., no bond). The Commission’s orders
                                               names of two of the respondents and                     tuner to perform the requested tuning
                                                                                                                                                             and opinion were delivered to the
                                               determined to reopen the evidentiary                    operation’’ in the ’512 patent and
                                                                                                                                                             President and to the United States Trade
                                               record and accept the supplemental                      affirms the Final ID’s infringement
                                                                                                                                                             Representative on the day of their
                                               disclosure, response thereto, and reply                 determinations as to that patent. The
                                                                                                                                                             issuance.
                                               to the response. Id. at 38934–35. The                   Commission modifies and affirms the
                                                                                                                                                                The authority for the Commission’s
                                               Commission requested briefing on some                   Final ID’s conclusion that the asserted
                                                                                                                                                             determination is contained in section
                                               of the issues under review and also on                  claims of the ’512 patent are invalid as
                                                                                                                                                             337 of the Tariff Act of 1930, as
                                               remedy, the public interest, and                        obvious. The Commission takes no
                                                                                                                                                             amended (19 U.S.C. 1337), and in Part
                                               bonding. Id. at 38935–36.                               position as to whether the ARRIS-Rovi
                                                  On August 23, 2017, Respondents                                                                            210 of the Commission’s Rules of
                                                                                                       Agreement provides a defense to the
                                               filed a Petition for Reconsideration of                                                                       Practice and Procedure (19 CFR part
                                                                                                       allegations against ARRIS, and as to
                                               the Commission’s Determination of                                                                             210).
                                                                                                       whether Rovi established the economic
                                               Waiver as to Certain Issues Specified in                prong of the domestic industry                          By order of the Commission.
                                               Respondents’ Petition for Review or,                    requirement based on patent licensing.                  Issued: November 21, 2017.
                                               Alternatively, Application of Waiver to                 The Commission adopts the remainder                   Katherine M. Hiner,
                                               Issues Raised in Rovi’s Petition for                    of the Final ID to the extent that it does            Supervisory Attorney.
                                               Review. On August 30, 2017, Rovi filed                  not conflict with the Commission’s                    [FR Doc. 2017–25625 Filed 11–27–17; 8:45 am]
                                               a response thereto. The Commission has                  opinion or to the extent it is not                    BILLING CODE 7020–02–P
                                               determined to deny that petition.                       expressly addressed in the
                                                  On August 24, 2017, Rovi and                         Commission’s opinion.
                                               Respondents filed their written                            Having found a violation of section
                                                                                                       337 in this investigation by Comcast                  DEPARTMENT OF JUSTICE
                                               submissions on the issues under review
                                               and on remedy, public interest, and                     with respect to the ’263 and ’413                     Notice of Lodging of Proposed
                                               bonding, and on August 31, 2017, the                    patents, the Commission has                           Stipulation and Order Under the
                                               parties filed their reply submissions.                  determined that the appropriate form of               Comprehensive Environmental
                                                  Having examined the record in this                   relief is (1) a LEO, that subject to certain          Response, Compensation, and Liability
                                               investigation, the Commission has                       exceptions provided therein, prohibits
ethrower on DSK3G9T082PROD with NOTICES




                                                                                                                                                             Act
                                               determined to affirm the Final ID’s                     the unlicensed entry of certain digital
                                               conclusion that Comcast has violated                    video receivers and hardware and                        On November 20, 2017, the
                                               section 337 in connection with the                      software components thereof that                      Department of Justice lodged a proposed
                                               asserted claims of the ’263 and ’413                    infringe one or more of claims 1, 2, 14,              Stipulation and Order with the United
                                               patents.                                                and 17 of the ’263 patent and claims 1,               States Bankruptcy Court for the
                                                  The Commission has determined to                     3, 5, 9, 10, 14, and 18 of the ’413 patent            Southern District of New York in the
                                               affirm the Final ID in part, affirm the                 that are manufactured by, or on behalf                bankruptcy proceedings entitled In re


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Document Created: 2017-11-28 01:51:17
Document Modified: 2017-11-28 01:51:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactRon Traud, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone 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, telephone 202-205-2000. General information concerning the Commission may also be obtained by accessing its Internet server at https:// www.usitc.gov. The public record for this investigation may be viewed on the Commission's electronic docket (``EDIS'') at https:// edis.usitc.gov. Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal, telephone 202-205-1810.
FR Citation82 FR 56268 

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