Notice2024-12940
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
Primary source
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Published
June 13, 2024
Issuing agencies
International Trade Commission
Abstract
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 The LEO is modified and the CDOs are rescinded.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.
Full Text
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<title>Federal Register, Volume 89 Issue 115 (Thursday, June 13, 2024)</title>
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[Federal Register Volume 89, Number 115 (Thursday, June 13, 2024)]
[Notices]
[Pages 50367-50369]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="https://edis.usitc.gov">https://edis.usitc.gov</a>. For help accessing EDIS, please email
<a href="/cdn-cgi/l/email-protection#60252429335328050c102015130914034e070f16"><span class="__cf_email__" data-cfemail="90d5d4d9c3a3d8f5fce0d0e5e3f9e4f3bef7ffe6">[email protected]</span></a>. General information concerning the Commission may
also be obtained by accessing its
[[Page 50368]]
internet server at <a href="https://www.usitc.gov">https://www.usitc.gov</a>. 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,
[[Page 50369]]
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
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