[Federal Register Volume 89, Number 115 (Thursday, June 13, 2024)]
[Notices]
[Pages 50367-50369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12940]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1318 (Modification (III) and Rescission 
(II))]


Certain Graphics Systems, Components Thereof, and Digital 
Televisions Containing the Same; Notice of Commission Determination To 
Institute Modification and Rescission Proceedings and To Grant a Joint 
Motion for Limited Service of Confidential Exhibits; Modification of 
Limited Exclusion Order and Rescission of Cease and Desist Orders; 
Termination of Modification and Rescission Proceedings

AGENCY: 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 modification and rescission 
proceedings based on a second corrected joint petition to modify a 
limited exclusion order (``LEO'') and rescind in full cease and desist 
orders (``CDOs'') issued in the underlying investigation based on a 
settlement agreement and grant petitioners' motion for limited service 
of confidential exhibits. The LEO is modified and the CDOs are 
rescinded. The modification and rescission proceedings are terminated.

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

[[Page 50368]]

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 
institution 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 
Semiconductor Corporation (``Realtek'') of Hsinchu, Taiwan. 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 TCL and Realtek 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 Commission determined that the 
appropriate remedy is: (i) an LEO against TCL's and Realtek's 
infringing products and (ii) 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 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, pursuant to 19 U.S.C. 1337(k) and Commission Rule 
210.76(a) (19 CFR 210.76(a)), AMD and TCL (together, ``Petitioners'') 
filed a joint petition (``Original Petition'') to modify the LEO as to 
TCL and rescind in full the CDOs against TCL based on a settlement 
agreement between Petitioners. On April 11, 2024, Realtek filed a 
response to the Original Petition. Realtek states that it ``takes no 
position'' on whether the Original Petition should be granted because 
Petitioners failed to disclose certain information required by 
Commission Rules 210.76(a)(1) and (a)(3). Realtek also states that, in 
assessing the Original Petition, the Commission and Realtek would 
``benefit from'' receiving certain additional information from 
Petitioners.
    On April 12, 2024, Petitioners filed a corrected joint petition 
(``Corrected Petition'' or ``CPet.'') and a joint motion to limit 
service to only the Commission and its staff of the confidential 
versions of the exhibits attached thereto. Attached to the Corrected 
Petition are redacted copies of a license and settlement agreement 
between the Petitioners (Ex. D), as well as ``two documents referenced 
therein'' (Exs. E and F). CPet. at 4. The unredacted versions of 
Exhibits D, E, and F correspond to confidential Exhibits G, H, and I, 
respectively. See id. Petitioners stated that they would file certain 
unredacted exhibits via a separate cover letter. Id. That same day, AMD 
filed a separate correspondence to the Secretary requesting 
confidential treatment of business information contained in Exhibits G 
and H attached thereto but did not attach Exhibit I to the request. On 
April 24, 2024, Realtek filed a response to the Corrected Petition and 
motion for limited service stating that it ``takes no position'' on 
whether the Corrected Petition should be granted because Petitioners 
again failed to disclose certain information required by Commission 
Rules 210.76(a)(1) and (a)(3). Realtek also stated that Petitioners 
failed to show good cause to support their request for limited service 
of the confidential versions of the exhibits attached to the Corrected 
Petition.
    On April 30, 2024, the Commission determined not to institute the 
requested modification and rescission proceedings due to the Corrected 
Petition's failure to comply with Commission rules. See Comm'n Notice 
(May 1, 2024); see 19 CFR 210.76(a)(3). Specifically, the Commission 
determined that ``[w]hile the Corrected Petition cures the lack of the 
statement of no other agreements that was missing in the Original 
Petition, the corrected filing and correspondence to the Secretary fail 
to comply with the requirement that unredacted copies of the settlement 
documents (and documents referenced therein) be submitted.'' Id. The 
Commission specified that the determination not to institute was 
without prejudice. Id. The Commission also determined to deny as moot 
Petitioners' motion for limited service of confidential exhibits G, H, 
and I. Id.
    On May 2, 2024, TCL filed a separate correspondence to the 
Secretary requesting confidential treatment of business information 
contained in Exhibit I attached thereto. On May 7, 2024, AMD and TCL 
filed a second corrected joint petition (``Second Corrected Petition'' 
or ``SCPet.'') to modify and rescind the remedial orders as to TCL 
based on settlement and a joint motion to limit service to only the 
Commission and its staff of the confidential versions of the exhibits 
attached thereto. The petition states that there are ``no other 
agreements, written or oral, express or implied between the AMD and TCL 
[sic] concerning the subject matter of the Investigation'' and includes 
or references the licensing agreements and underlying documents serving 
as a basis for the settlement, including confidential and redacted 
versions of such documents. SCPet. at 2-4. The separate submissions of 
the confidential documents state that there is good cause to limit 
service because the confidential documents are ``not available to the 
public,'' ``unauthorized disclosure . . . could cause substantial harm 
to [TCL's and/or AMD's] competitive position,'' and ``disclosure could 
impair the Commission's ability to obtain information necessary to 
perform its statutory function.'' See Letter from AMD's counsel, 
Michael T. Renaud, to Secretary at 1 (Apr. 12,

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2024); Letter from TCL's counsel, Yun Louise Lu, to Secretary at 1 (May 
2, 2024).
    On May 17, 2024, Realtek filed a response to the Second Corrected 
Petition and motion to limit service stating that it ``takes no 
position'' on whether the Second Corrected Petition should be granted 
because Petitioners again failed to disclose certain information 
required by Commission Rules 210.76(a)(1) and (a)(3). Realtek also 
stated that Petitioners failed to show good cause to support their 
request for limited service of the confidential versions of the 
exhibits attached to the Second Corrected Petition.
    The Commission, having reviewed the record in this investigation, 
including Petitioners' Second Corrected Petition and motion for limited 
service, Realtek's response thereto, as well as AMD's and TCL's 
separate correspondence to the Secretary requesting confidential 
treatment of the business information contained in Exhibits G, H, and 
I, has determined that the Second Corrected Petition satisfies the 
requirements of Commission Rule 210.76(a)(3), 19 CFR 210.76(a)(3). The 
Commission has further determined that the conditions justifying the 
remedial orders against TCL no longer exist, and, therefore, granting 
the Second Corrected Petition is warranted under section 337(k), 19 
U.S.C. 1337(k), and Commission Rule 210.76(a)(3). Accordingly, the 
Commission has determined to institute modification and rescission 
proceedings and to modify the LEO to remove reference to TCL and 
rescind in full the CDOs against TCL based on the settlement agreement 
between Petitioners. The Commission also finds that Petitioners have 
shown the requisite good cause under Commission Rule 210.76(a)(3) to 
grant their motion for limited service of confidential Exhibits G, H, 
and I. The Commission issues a modified LEO and an order herewith 
setting forth its determinations.
    The modification and rescission proceedings are terminated.
    The Commission vote for this determination took place on June 7, 
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: June 7, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-12940 Filed 6-12-24; 8:45 am]
BILLING CODE 7020-02-P