83 FR 48455 - Certain Semiconductor Devices and Consumer Audiovisual Products Containing the Same; Commission's Final Determination of No Violation of Section 337; Termination of the Investigation

INTERNATIONAL TRADE COMMISSION

Federal Register Volume 83, Issue 186 (September 25, 2018)

Notice is hereby given that the U.S. International Trade Commission has found no violation of section 337 of the Tariff Act of 1930, as amended, by respondents Sigma Designs, Inc. and Vizio, Inc. The investigation is terminated.

[Federal Register Volume 83, Number 186 (Tuesday, September 25, 2018)]
[Notices]
[Pages 48455-48456]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20778]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1047]


Certain Semiconductor Devices and Consumer Audiovisual Products 
Containing the Same; Commission's Final Determination of No Violation 
of Section 337; Termination of the Investigation

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has found no violation of section 337 of the Tariff Act of 
1930, as amended, by respondents Sigma Designs, Inc. and Vizio, Inc. 
The investigation is terminated.

FOR FURTHER INFORMATION CONTACT: Robert Needham, Office of the General 
Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 708-5468. 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 (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 on (202) 
205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on April 12, 2017, based on a complaint filed by Broadcom Corporation 
(``Broadcom'') of Irvine, California. 82 FR 17688. The complaint 
alleges violations of section 337 of the Tariff Act of 1930, as 
amended, 19 U.S.C. 1337 (``section 337''), in the importation into the 
United States, the sale for importation, and the sale within the United 
States after importation of certain semiconductor devices and consumer 
audiovisual products containing the same that infringe U.S. Patent Nos. 
7,310,104 (``the '104 patent''); 7,342,967 (``the '967 patent''); 
7,590,059 (``the '059 patent''); 8,068,171 (``the '171 patent''); and 
8,284,844 (``the '844 patent''). Id. The Commission's notice of 
investigation named as respondents MediaTek Inc. of Hsinchu City, 
Taiwan, MediaTek USA Inc. of San Jose, California, and MStar 
Semiconductor Inc. of ChuPei Hsinchu Hsien, Taiwan (together, 
``MediaTek''); Sigma Designs, Inc. of Fremont, California (``Sigma''); 
LG Electronics Inc. of Seoul, Republic of Korea and LG Electronics 
U.S.A., Inc. of Englewood Cliffs, New Jersey (together, ``LG''); Funai 
Electric Company, Ltd., of Osaka, Japan, Funai Corporation, Inc. of 
Rutherford, New Jersey, and P&F USA, Inc. of Alpharetta, Georgia 
(together, ``Funai''); and Vizio, Inc., of Irvine, California 
(``Vizio''). Id. The Office of Unfair Import Investigations is not 
participating in this investigation. Id.
    Several parties were terminated from the investigation based on 
settlement. Specifically, the Commission terminated the investigation 
with respect to Funai, Order No. 31 (Nov. 7, 2017), not reviewed Notice 
(Dec. 12, 2017); MediaTek, Order No. 35 (Nov. 29, 2017), not reviewed 
Notice (Dec. 19, 2017); and LG, Order No. 42 (Apr. 9, 2018), not 
reviewed Notice (May 4, 2018). Accordingly, only respondents Sigma and 
Vizio (together, ``Respondents'') remained in the investigation at the 
time of the final ID.
    The Commission also terminated two patents and several claims of 
the remaining patents based on Broadcom's partial withdrawal of the 
complaint. Specifically, the Commission terminated the investigation 
with

[[Page 48456]]

respect to the '967 patent, the '171 patent, claims 21-30 of the '059 
patent, and claim 14 of the '844 patent. Order No. 24 (Oct. 10, 2017), 
not reviewed Notice (Oct. 24, 2017). Broadcom also elected to withdraw 
claims 5 and 11-13 of the '844 patent in its post-hearing brief. ID at 
7. Accordingly, at the time of the final ID, the only remaining claims 
were claims 1, 10, 11, 16, 17, and 22 of the '104 patent; claims 1-4, 
6-10, of the '844 patent; and claims 11-20 of the '059 patent.
    On May 11, 2018, the ALJ issued a final ID finding no violation of 
section 337. Specifically, he found that Respondents did not infringe 
any claim, that the asserted claims of the '844 patent are invalid, and 
that Broadcom did not satisfy the technical prong of the domestic 
industry requirement for the '104 patent. On May 29, 2018, Broadcom and 
Respondents each petitioned for review of the ID. On June 6, 2018, the 
parties opposed each other's petitions.
    On July 17, 2018, the Commission determined to review the following 
issues: (1) The construction of ``a processor adapted to control a 
decoding process'' in claim 1 of the '844 patent, as well as related 
issues of infringement, invalidity, and the technical prong of the 
domestic industry requirement with respect to the limitation; (2) the 
finding that the prior art reference Fandrianto anticipates the 
limitation ``adapted to perform a decoding function on a digital media 
stream'' of claim 1 of the '844 patent; (3) the construction of ``the 
blended graphics image'' in claim 1 of the '104 patent, as well as 
related issues of infringement, invalidity, and the technical prong of 
the domestic industry requirement with respect to the limitation; (4) 
the construction of ``blend the blended graphics image with the video 
image using the alpha values and/or at least one value derived from the 
alpha values'' limitation in claim 1 of the '104 patent, as well as 
related issues of infringement, invalidity, and the technical prong of 
the domestic industry requirement with respect to the limitation; and 
(5) the finding that claims 1 and 10 of the '104 patent are invalid as 
obvious if certain claim constructions are modified. The Commission 
determined not to review the ID's finding of no violation with respect 
to the '059 patent.
    Having examined the record of this investigation, including the 
ALJ's final ID, the petitions, responses, and other submissions from 
the parties and the public, the Commission has determined that Broadcom 
has not proven a violation of section 337 by Sigma and Vizio. 
Specifically, the Commission has determined to modify the ID's 
construction of ``a processor adapted to control a decoding process,'' 
and, under the modified construction, finds that the limitation is 
satisfied for the technical prong of the domestic industry requirement 
and invalidity, but is not satisfied for infringement. The Commission 
also has determined to affirm under modified reasoning that Fandrianto 
satisfies the limitation ``adapted to perform a decoding function on a 
digital media stream.'' The Commission has additionally determined to 
modify the ID's construction of ``the blended graphics image,'' and, 
under the modified construction, finds that the limitation is satisfied 
for infringement and the technical prong. The Commission has further 
determined to affirm under modified reasoning the ID's construction of 
``blend the blended graphic image with the video image using the alpha 
values and/or at least one value derived from the alpha values,'' and 
affirms the ID's findings on infringement, invalidity, and the 
technical prong with respect to the limitation. Finally, the Commission 
has determined to take no position on the ID's finding that claims 1 
and 10 of the '104 patent are obvious.
    Accordingly, the Commission has determined that Broadcom has failed 
to show a violation of section 337 with respect to both the '844 and 
'104 patents. For the '844 patent, the Commission finds that Broadcom 
failed to establish infringement, but did satisfy the technical prong 
of the domestic industry requirement. The Commission further finds that 
the Respondents showed by clear and convincing evidence that claims 1-
10 are invalid as anticipated. For the '104 patent, the Commission 
finds that Broadcom failed to show both infringement and the 
satisfaction of the technical prong of the domestic industry 
requirement. The Commission's determinations are explained more fully 
in the accompanying Opinion. All other findings in the ID under review 
that are consistent with the Commission's determinations are affirmed.
    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: September 19, 2018.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2018-20778 Filed 9-24-18; 8:45 am]
 BILLING CODE 7020-02-P