[Federal Register Volume 72, Number 113 (Wednesday, June 13, 2007)]
[Notices]
[Pages 32682-32683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11389]


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INTERNATIONAL TRADE COMMISSION

[Inv. No. 337-TA-543]


In the Matter of Certain Baseband Processor Chips and Chipsets, 
Transmitter and Receiver (Radio) Chips, Power Control Chips, and 
Products Containing Same, Including Cellular Telephone Handsets; 
Commission Determination on the Issues of Remedy, the Public Interest, 
and Bonding; 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 issued a limited exclusion order and a cease and desist 
order in the above-captioned investigation directed against certain 
products of respondent Qualcomm Incorporated of San Diego, California 
(``Qualcomm'') and certain downstream products that contain them. The 
Commission has terminated the investigation.

FOR FURTHER INFORMATION CONTACT: Michael Liberman, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street, 
SW., Washington, DC 20436, telephone 202-205-3152. Copies of the ID and 
all other nonconfidential 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. Hearing-impaired persons are advised 
that information on this matter can be obtained by contacting the 
Commission's TDD terminal on 202-205-1810. General information 
concerning the Commission may also be obtained by accessing its 
Internet server (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.

SUPPLEMENTARY INFORMATION: On June 21, 2005, the Commission instituted 
an investigation under section 337 of the Tariff Act of 1930, 19 U.S.C. 
1337, based on a complaint filed by Broadcom Corporation of Irvine, 
California, alleging a violation of section 337 in the importation, 
sale for importation, and sale within the United States after 
importation of certain baseband processor chips and chipsets, 
transmitter and receiver (radio) chips, power control chips, and 
products containing same, including cellular telephone handsets by 
reason of infringement of certain claims of U.S. Patent Nos. 6,374,311; 
6,714,983 (``the '983 patent''); 5,682,379 (``the '379 patent''); 
6,359,872 (``the '872 patent''); and 6,583,675. 70 FR 35707 (June 21, 
2005). The complainant named Qualcomm Incorporated of San Diego, 
California (``Qualcomm'') as the only respondent. The '379 and '872 
patents were terminated from this investigation.
    On October 19, 2006, the presiding administrative law judge 
(``ALJ'') issued an Initial Determination on Violation of Section 337 
and a Recommended Determination on Remedy and Bond (collectively, 
``ID''), finding a violation of section 337. On December 8, 2006, the 
Commission issued a notice of its decision to review and modify in part 
the ALJ's final ID. The modification made by the Commission did not 
affect the finding of violation. The Commission also requested the 
parties to the investigation, interested government agencies, and any 
other interested persons to file written submissions on the issues of 
remedy, the public interest, and bonding.
    On January 25, 2007, respondent Qualcomm moved, inter alia, for 
oral argument and hearing on the issues of remedy and the public 
interest. On March 21-22, 2007, the Commission held a public hearing on 
the issues of remedy and the public interest. Subsequently, the 
Commission extended the target date for completion of this 
investigation to June 7, 2007.
    Having reviewed the record in this investigation, including the 
written submissions of the parties and the testimony at the Commission 
public hearing, the Commission has made the following determinations on 
the issues of remedy, the public interest, and bonding.
    The Commission has determined that the appropriate form of relief 
is, inter alia, a limited exclusion order prohibiting the unlicensed 
entry of baseband processor chips or chipsets, including chips or 
chipsets incorporated into circuit board modules and carriers, 
manufactured abroad by or on behalf of Qualcomm or any of its 
affiliated companies, parents, subsidiaries, contractors, or other 
related business entities, or their successors or assigns, that are 
programmed to enable the power saving features covered by claims 1, 4, 
8, 9, or 11 of the '983 patent, as well as handheld wireless 
communications devices, including cellular telephone handsets and PDAs, 
containing Qualcomm baseband processor chips or chipsets that are

[[Page 32683]]

programmed to enable the power saving features covered by claims 1, 4, 
8, 9, or 11 of the '983 patent. The Commission limited exclusion order 
does not apply to computer data cards. Also exempted from the 
Commission limited exclusion order are handheld wireless communications 
devices that are of the same models as handheld wireless communications 
devices that were being imported into the United States for sale to the 
general public on or before the date of the Commission limited 
exclusion order. The exempted models must be identifiable by specific 
and verifiable model numbers, denoting model-specific product 
specifications, features, and functions. Importers will be able to 
certify to the Bureau of Customs and Border Protection (``Customs'') 
that their products are exempted. This exemption will not apply to 
handheld wireless communications devices that differ in terms of model 
number, product specifications, features, or functions from wireless 
handheld communications devices that were being imported into the 
United States for sale to the general public on or before the date of 
the Commission limited exclusion order.
    To assist enforcement of the exclusion order, and to aid importers 
seeking a good faith basis on which to certify that products are 
exempted as pre-existing models, we encourage importers and parties 
that sell downstream devices to members of the general public to supply 
Customs, as soon as practicable, information and supporting 
documentation as to those handset models that contain the infringing 
chips and that were being imported for sale to the general public on or 
before the date of the limited exclusion order. That submission should 
include a complete list of the product specifications, features, and 
functions associated with each exempted model number. Imports of 
prototypes, or downstream devices for use in testing, for limited-scale 
distribution for marketing or other purposes, or any purpose other than 
widespread sales to end use consumers, do not constitute imports for 
sale to the general public.
    The Commission has also determined to issue a cease and desist 
order that prevents Qualcomm from engaging in certain activities in the 
United States related to the infringing chips.
    The Commission found that, while exclusion of all downstream 
products could adversely affect the public interest as enumerated in 
section 337(d)(1) (19 U.S.C. 1337(d)(1)), the exemption for previously 
imported models sufficiently ameliorates this impact such that the 
limited exclusion and cease and desist orders should be issued. 
Finally, the Commission determined that the amount of bond to permit 
temporary importation during the Presidential review period (19 U.S.C. 
Sec.  *1337(j)) shall be in the amount of one hundred (100) percent of 
entered value for infringing chips or chipsets imported separately, or 
five (5) percent of entered value per handheld wireless communications 
device containing infringing chips or chipsets. Pursuant to subsection 
(j) of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 
1337(j), from the day after this Order is received by the United States 
Trade Representative (70 FR 43251 (July 21, 2005)), this bond will be 
in effect until such time as the United States Trade Representative 
notifies the Commission that she approves or disapproves this action 
but, in any event, not later than sixty (60) days after the date of 
receipt of this action.
    Vice Chairman Shara L. Aranoff, Commissioner Deanna Tanner Okun, 
Commissioner Charlotte R. Lane, and Commissioner Irving A. Williamson 
voted in favor of the remedial orders. They provide their supporting 
analysis in two separate opinions. Chairman Daniel R. Pearson and 
Commissioner Dean A. Pinkert dissented and provide additional and 
dissenting views.
    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 Sec.  210.50 of the Commission's Rules of Practice and Procedure (19 
CFR 210.50).

    Issued: June 7, 2007.

    By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
 [FR Doc. E7-11389 Filed 6-12-07; 8:45 am]
BILLING CODE 7020-02-P