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No Import Restrictions Recommended in Patent Infringement Probe of Integrated Circuit Chips

Thursday, May 29, 2014
Sandler, Travis & Rosenberg Trade Report

In investigation 337-TA-859 of certain integrated circuit chips and products containing the same, the International Trade Commission has determined to review in part the final initial determination issued by the presiding administrative law judge finding no violation of section 337 of the 1930 Tariff Act. The ALJ found that the patent claims asserted by Realtek Semiconductor Corporation were infringed but held those claims invalid and determined that no domestic industry exists.

The ALJ recommended that if the ITC does find a violation it should (a) issue a limited exclusion order that includes a six-month waiting period to permit only one respondent to replace the accused chips with non-infringing chips, (b) require Realtek to submit quarterly reports certifying that it continues to maintain a domestic industry with respect to the domestic industry products and to specify the nature of the activities that constitute the domestic industry, (c) not issue cease and desist orders, and (d) set a zero bond.

The ITC is now soliciting public comments through June 5 on the following issues: whether a six-month delay in enforcing a limited exclusion order is or is not appropriate; the form of remedy, if any, that should be ordered; the effects of any such remedy on the public health and welfare, competitive conditions in the U.S. economy, U.S. production of articles that are like or directly competitive with those that are subject to investigation, and U.S. consumers; and the amount of the bond under which infringing articles could enter the U.S. during the 60-day period the president has to review any ITC-ordered remedy.

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