[Federal Register Volume 89, Number 103 (Tuesday, May 28, 2024)]
[Notices]
[Pages 46158-46159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11606]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1318 (Modification)]


Certain Graphics Systems, Components Thereof, and Digital 
Televisions Containing the Same; Notice of Commission Determination to 
Institute a Modification Proceeding

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 to institute a modification proceeding as to 
the limited exclusion order (``LEO'') issued against Realtek 
Semiconductor Corporation (``Realtek'') of Hsinchu, Taiwan in the 
underlying investigation.

FOR FURTHER INFORMATION CONTACT: Richard P. Hadorn, Esq., Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 205-3179. Copies of non-
confidential documents filed in connection with this investigation may 
be viewed on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email 
[email protected]. General information concerning the Commission may 
also be obtained by accessing its internet server at https://www.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 June 7, 2022, based on a complaint filed by Advanced Micro Devices, 
Inc. of Santa Clara, California and ATI Technologies ULC of Ontario, 
Canada (together, ``AMD''). 87 FR 34718-19 (June 7, 2022). The 
complaint, as supplemented, alleges violations of section 337 of the 
Tariff Act of 1930, as amended, 19 U.S.C. 1337 (``section 337''), based 
on certain graphics systems, components thereof, and digital 
televisions containing the same by reason of infringement of certain 
claims of U.S. Patent Nos. 7,742,053; 8,760,454; 11,184,628; 8,468,547; 
and 8,854,381 (``the '381 patent''). Id. at 34718. The complaint 
further alleges that a domestic industry exists. Id. The notice of 
investigation named 14 respondents: (1) TCL Industries Holdings Co., 
Ltd. of Guangdong, China; (2) TCL Industries Holdings (H.K.) Co. 
Limited of Hong Kong, China; (3) TCL Electronics Holdings Ltd. f/k/a 
TCL Multimedia Technology Holdings, Ltd. of Hong Kong, China; (4) TCL 
Technology Group Corporation of Guangdong, China; (5) TTE Corporation 
of Hong Kong, China; (6) TCL Holdings (BVI) Ltd. of Hong Kong, China; 
(7) TCL King Electrical Appliances (Huizhou) Co. Ltd. of Guangdong, 
China; (8) Shenzhen TCL New Technology Co., Ltd. of Guangdong, China; 
(9) TCL MOKA International Ltd. of Hong Kong, China; (10) TCL Smart 
Device (Vietnam) Co., Ltd. of Binh Duong Province, Vietnam; (11) 
Manufacturas Avanzadas SA de CV of Chihuahua, Mexico; (12) TCL 
Electronics Mexico, S de RL de CV of Benito Juarez, Mexico; (13) TCL 
Overseas Marketing Ltd. of Hong Kong, China; and (14) Realtek. Id. at 
34719, as amended, 87 FR 62452-53 (Oct. 14, 2022). The Office of Unfair 
Import Investigations was not named as a party to this investigation. 
87 FR at 34719.
    On September 26, 2022, the Commission allowed TTE Technology, Inc. 
of Corona, California to intervene in this investigation as an 
additional respondent (collectively, with all named respondents except 
for Realtek, ``TCL''). See Order No. 17 (Aug. 30, 2022), unreviewed by 
Comm'n Notice (Sept. 26, 2022).
    On January 24, 2024, the Commission issued a final determination 
finding a violation of section 337 by Realtek and TCL with respect to 
claims 19 and 20 of the '381 patent. 89 FR 5934-35 (Jan. 30, 2024); see 
Comm'n Opinion (Jan. 24, 2024). The products adjudicated as infringing 
each incorporate graphics processing units (``GPUs'') designed and 
supplied by non-party ARM, Inc. (``ARM''). Comm'n Op. at 14. The

[[Page 46159]]

Commission determined that the appropriate remedy is: (i) an LEO 
against Realtek's and TCL's infringing products and (ii) cease and 
desist orders (``CDOs'') against each of the TCL entities, but not 
against Realtek. 89 FR at 5935. The Commission also set the bond during 
the period of Presidential review at zero (0) percent of the entered 
value of the infringing articles. Id.
    On February 1, 2024, Realtek filed a petition for reconsideration 
of the following sentence on page 59 of the Commission's Opinion: ``The 
Commission has determined not to limit the remedial orders to `GPUs 
with an ARM architecture.''' On May 6, 2024, the Commission denied 
Realtek's petition for reconsideration, reiterating that the LEO covers 
any of Realtek's infringing products that are within the scope of the 
investigation, including those containing GPUs manufactured by entities 
other than ARM. See Comm'n Notice (May 7, 2024).
    On March 28, 2024, Realtek filed an appeal from the Commission's 
final determination with the U.S. Court of Appeals for the Federal 
Circuit. See Realtek Semiconductor Corp. v. ITC, Appeal Nos. 24-1613. 
That appeal remains pending.
    On April 1, 2024, AMD and TCL filed a joint petition to modify in 
part the LEO as to TCL and rescind the CDOs against TCL based on a 
settlement agreement. On April 12, 2024, AMD and TCL filed a joint 
corrected petition to modify and rescind. On April 30, 2024, the 
Commission determined not to institute the requested modification and 
rescission proceedings due to the petition's failure to comply with the 
Commission's rules. See Comm'n Notice (May 1, 2024). The Commission 
specified that the determination not to institute was without 
prejudice. Id. On May 7, 2024, AMD and TCL filed a second corrected 
joint petition to modify and rescind. The second corrected petition is 
currently pending before the Commission.
    On April 19, 2024, pursuant to 19 U.S.C. 1337(k) and Commission 
Rule 210.76(a) (19 CFR 210.76(a)), Realtek filed a petition to 
institute a modification proceeding as to the LEO based on a changed 
condition of fact. Specifically, Realtek contends that, on information 
and belief, non-party ARM--which supplied the GPUs contained in 
Realtek's products adjudicated as infringing the '381 patent--recently 
acquired a license to the '381 patent. On May 1, 2024, AMD filed a 
response opposing the petition. On May 3, 2024, Realtek submitted a 
letter to the Secretary in reply to AMD's opposition. On May 9, 2024, 
AMD submitted a letter to the Secretary in response to Realtek's 
letter.
    The Commission, having reviewed the record in this investigation, 
including Realtek's petition, AMD's response thereto, Realtek's letter 
in reply, and AMD's letter in response to Realtek's letter, has 
determined that Realtek's petition complies with the Commission's 
rules. Accordingly, the Commission has determined that institution of a 
modification proceeding is warranted under 19 U.S.C. 1337(k) and 19 CFR 
210.76. The Commission has further determined to delegate the 
proceeding to a presiding administrative law judge (``ALJ''). For the 
modification proceeding so instituted, the Chief Administrative Law 
Judge, shall designate the presiding ALJ. The presiding ALJ shall 
submit a recommended determination within six (6) months after 
publication of notice of this Order in the Federal Register. AMD and 
Realtek are named as parties to the modification proceeding.
    The Commission vote for this determination took place on May 21, 
2024.
    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: May 21, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-11606 Filed 5-24-24; 8:45 am]
BILLING CODE 7020-02-P