[Federal Register Volume 77, Number 114 (Wednesday, June 13, 2012)]
[Notices]
[Pages 35427-35428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14321]


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 INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-744]


Certain Mobile Devices, Associated Software, and Components 
Thereof Final Determination of Violation; Issuance of a Limited 
Exclusion Order; Termination of 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 determined that there is a violation of section 337 of 
the Tariff Act of 1930, as amended (19 U.S.C. 1337) by respondent 
Motorola Mobility, Inc. of Libertyville, Illinois (``Motorola'') in the 
above-captioned investigation. The Commission has issued a limited 
exclusion order directed to the infringing products of Motorola and 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) 205-3115. 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 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 on (202) 
205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted this investigation 
on November 5, 2010, based on a complaint filed by Microsoft 
Corporation of Redmond, Washington (``Microsoft''). 75 FR 68379-80 
(Nov. 5, 2010). 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 mobile devices, associated 
software, and components thereof by reason of infringement of U.S. 
Patent Nos. 5,579,517 (``the `517 patent''); 5,758,352 (``the `352 
patent''); 6,621,746 (``the `746 patent''); 6,826,762 (``the `762 
patent''); 6,909,910 (``the `910 patent''); 7,644,376 (``the `376 
patent''); 5,664,133 (``the `133 patent''); 6,578,054 (``the `054 
patent''); and 6,370,566 (``the `566 patent.'') Subsequently, the `517 
and the `746 patents were terminated from the investigation. The notice 
of investigation, as amended, names Motorola Mobility, Inc. of 
Libertyville, Illinois and Motorola, Inc. of Schaumburg, Illinois as 
respondents. Motorola, Inc. n/k/a Motorola Solutions was terminated 
from the investigation

[[Page 35428]]

based on withdrawal of infringement allegations on July 12, 2011.
    The presiding administrative law judge (``ALJ'') issued the final 
initial determination (``ID'') on violation in this investigation on 
December 20, 2011. He issued his recommended determination on remedy 
and bonding on the same day. The ALJ found that a violation of section 
337 has occurred in the importation into the United States, the sale 
for importation, or the sale within the United States after importation 
of certain mobile devices, associated software, and components thereof 
containing same by reason of infringement of one or more of claims 1, 
2, 5 and 6 of the `566 patent. Both Complainant and Respondent filed 
timely petitions for review of various portions of the final ID, as 
well as timely responses to the petitions.
    The Commission determined to review various portions of the final 
ID and issued a Notice to that effect dated March 2, 2012. 77 FR 14043 
(Mar. 8, 2012). In the Notice, the Commission also set a schedule for 
the filing of written submissions on the issues under review, including 
certain questions posed by the Commission, and on remedy, the public 
interest, and bonding. The parties have briefed, with initial and reply 
submissions, the issues under review and the issues of remedy, the 
public interest, and bonding. Public interest comments were also 
received from non-parties Association for Competitive Technology, Inc. 
and Google Inc.
    On review, the Commission has determined as follows.
    (1) To affirm with modifications the ALJ's determination that 
Microsoft met the economic prong of the domestic industry requirement 
with respect to all of the presently asserted patents in this 
investigation, i.e., the `352 patent, the `762 patent, the `910 patent, 
the `376 patent, the `133 patent, the `054 patent, and the `566 patent;
    (2) With respect to the ID's determination regarding the technical 
prong of the domestic industry requirement with respect to all of the 
presently asserted patents:
    (a) To affirm with modifications the ALJ's determination that 
Microsoft failed to meet the technical prong of the domestic industry 
requirement with respect to the `054 patent;
    (b) To affirm the ALJ's determination that Microsoft satisfied the 
technical prong of the domestic industry requirement with respect to 
the `566, `133, and `910 patents;
    (c) To reverse the ALJ's determination that Microsoft failed to 
meet the technical prong of the domestic industry requirement with 
respect to the `352 patent;
    (d) To affirm the ALJ's determination that Microsoft failed to meet 
the technical prong of the domestic industry requirement with respect 
to the `762 and `376 patents;
    (3) To affirm with modifications the ALJ's determination that the 
asserted claims of the `566 patent are not invalid due to anticipation 
or obviousness;
    (4) To reverse the ALJ's determination that Microsoft failed to 
carry its burden of showing that Motorola's accused products infringe 
the asserted claims of the `352 patent and determine that, based on the 
record, Microsoft proved by a preponderance of the evidence that 
Motorola's accused products directly infringe the `352 patent;
    (5) To affirm the ALJ's determination that Microsoft failed to 
prove by a preponderance of the evidence that Motorola induced 
infringement of each of the `054, `762, `376, `133, and `910 patents, 
and to affirm with modifications the ALJ's determination that Microsoft 
failed to prove by a preponderance of the evidence that Motorola 
induced infringement of each of the `566 and `352 patents.
    The Commission has determined that the appropriate form of relief 
in this investigation is a limited exclusion order prohibiting the 
unlicensed entry for consumption of mobile devices, associated software 
and components thereof covered by claims 1, 2, 5, or 6 of the United 
States Patent No. 6,370,566 and that are manufactured abroad by or on 
behalf of, or imported by or on behalf of, Motorola. The order provides 
an exception for service, repair, or replacement articles for use in 
servicing, repairing, or replacing mobile devices under warranty or 
insurance contract.
    The Commission has further determined that the public interest 
factors enumerated in section 337(d)(1) (19 U.S.C. 1337(d)(1)) do not 
preclude issuance of the limited exclusion order. Finally, the 
Commission determined that Motorola is required to post a bond set at a 
reasonable royalty rate in the amount of $0.33 per device entered for 
consumption during the period of Presidential review. The Commission's 
order was delivered to the President and the United States Trade 
Representative on the day of its issuance.
    The Commission has therefore terminated this investigation. 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 
sections 210.41-.42, 210.50 of the Commission's Rules of Practice and 
Procedure (19 CFR 210.41-.42, 210.50).

    By order of the Commission.

    Issued: May 18, 2012.
James R. Holbein,
Secretary to the Commission.
[FR Doc. 2012-14321 Filed 6-12-12; 8:45 am]
BILLING CODE 7020-02-P