[Federal Register Volume 89, Number 149 (Friday, August 2, 2024)]
[Notices]
[Pages 63221-63222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17039]


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INTERNATIONAL TRADE COMMISSION

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


Certain Graphics Systems, Components Thereof, and Digital 
Televisions Containing the Same; Notice of Commission Determination To 
Institute a Rescission Proceeding and To Rescind a Limited Exclusion 
Order; Termination of the Rescission Proceeding

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 a rescission proceeding and to 
rescind, based on a settlement agreement, a modified limited exclusion 
order (``LEO'') issued in the underlying investigation. The rescission 
proceeding is 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 internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on 
this matter can be obtained by contacting the

[[Page 63222]]

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) 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 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. 
On July 1, 2024, the Federal Circuit granted Realtek's voluntary 
dismissal of the appeal. See id., ECF No. 28.
    On June 7, 2024, the Commission issued a modified LEO, which is 
directed only to Realtek's infringing products, and rescinded the CDOs 
against TCL based on a settlement agreement between AMD and TCL. See 
Modified LEO at 1 (June 7, 2024); Comm'n Order at 6 (June 7, 2024).
    On May 21, 2024, the Commission instituted a modification 
proceeding as to the LEO based on a changed condition of fact alleged 
by Realtek. 89 FR 46158-59 (May 28, 2024). On June 27, 2024, AMD and 
Realtek filed a joint motion to terminate the modification proceeding 
based on a settlement agreement between AMD and Realtek dated June 17, 
2024, attaching thereto the same Exhibits A and B attached to the 
present petition. On July 5, 2024, the ALJ issued Order No. 78, which 
(i) ordered AMD and Realtek to ``revise and refile the non-confidential 
version of the agreement required by Commission Rules 210.21(a)(2) and 
210.21(b)(1) [19 CFR 210.21(a)(2) and (b)(1)], and in accordance with 
Commission Rule 201.6 [19 CFR 201.6],'' and (ii) stated that the motion 
to terminate will be ruled upon after the revised non-confidential 
version of the agreement is refiled. Order No. 78 at 2 (July 5, 2024).
    On July 12, 2024, in response to Order No. 78, Realtek filed a 
revised non-confidential version of the subject agreement (Ex. B). On 
July 15, 2024, the ALJ issued an initial determination (Order No. 79) 
granting the joint motion to terminate the modification proceeding. The 
ALJ found that the motion complies with the requirements of Commission 
Rule 210.21(b)(1) (19 CFR 210.21(b)(1)), including the submission of 
confidential and public versions of the subject agreement in compliance 
with Commission Rule 201.6 (19 CFR 201.6), and that there is no 
evidence that terminating the proceeding would be contrary to the 
public interest in accordance with Commission Rule 210.50(b)(2) (19 CFR 
210.50(b)(2)). Order No. 79 at 2 (July 15, 2024).
    On June 27, 2024, AMD and Realtek (together, ``Petitioners'') filed 
a joint petition (``Pet.'') to rescind the modified LEO based on the 
settlement agreement between the Petitioners. Attached to the petition 
is the same redacted copy of a ``binding settlement term sheet'' 
between the Petitioners (Ex. B) dated June 17, 2024, as was filed with 
the motion to terminate the modification proceeding. Pet. at 1, Ex. B. 
On June 28, 2024, AMD filed a separate correspondence to the Secretary 
requesting confidential treatment of business information contained in 
Exhibit A attached thereto (the unredacted version of Exhibit B 
attached to the petition). On July 22, 2024, Petitioners filed a 
corrected joint petition to rescind the modified LEO, and attached 
thereto the same revised, non-confidential version of the subject 
agreement (Ex. B) as was filed by Realtek in response to Order No. 78.
    The Commission, having reviewed the record in this investigation, 
including Petitioners' petition, AMD's request for confidential 
treatment of business information contained in Exhibit A, Petitioners' 
corrected petition, and revised Exhibit B, has determined that the 
conditions justifying the modified LEO against Realtek no longer exist, 
and, therefore, granting the corrected joint petition is warranted 
under section 337(k), 19 U.S.C. 1337(k), and Commission Rule 
210.76(a)(3), 19 CFR 210.76(a)(3). Accordingly, the Commission has 
determined to institute a rescission proceeding and to rescind the 
modified LEO based on the settlement agreement between Petitioners. The 
rescission proceeding is terminated. The Commission issues an order 
herewith setting forth its determinations.
    The Commission vote for this determination took place on July 29, 
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: July 29, 2024.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2024-17039 Filed 8-1-24; 8:45 am]
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