SUMMARY: Notice is hereby given that the U.S. International Trade Commission has issued a limited exclusion order and cease and desist order in the above-captioned investigation. FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street, S.W., Washington, D.C. 20436, telephone (202) 205-3107. SUPPLEMENTARY INFORMATION: The authority for the Commission's determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C. Sec. 137), and in sections 210.45 and 210.50 of the Commission's Rules of Practice and Procedure (19 CFR Secs. 210.45 and 210.50). The Commission instituted this patent-based section 337 investigation based on a complaint filed by complainant SanDisk Corporation (``SanDisk''). Complainant alleged that respondents Samsung Electric Company, Ltd. and Samsung Semiconductor, Inc. (collectively, ``Samsung'') had violated section 337 of the Tariff Act of 1930, as amended (19 CFR Sec. 1337), in the importation, sale for importation, and/or sale after importation of certain flash memory circuits by reason of infringement of claim 1, 2, or 4 of complainant's U.S. Letters Patent 5,418,752 (the '752 patent'') and/or claim 27 of complainant's U.S. Letters Patent 5,172,338 (the '338 patent''). The administrative law judge (``ALJ'') assigned to this investigation held an evidentiary hearing in September and October 1996. On February 26, 1997, the presiding ALJ issued an initial determination (``ID''), in which he found a violation of section 337. Specifically, the ALJ found that Samsung's so-called ``original'' design products directly infringe the '752 patent, and both Samsung's original and ``new'' design products directly infringe the '338 patent. The ALJ also found that Samsung could be held liable for contributory and/or induced infringement of the '752 patent under an alternate construction of certain patent claims in issue advocated by Samsung. However, the ALJ declined to make a determination as to whether Samsung's new design products infringe the '752 patent, citing inadequate document production by Samsung. On March 5, 1997, the ALJ issued his recommended determination (``RD'') on remedy and bonding. The ALJ recommended that the Commission issue a limited exclusion order directed toward Samsung's infringing flash memory circuits as well as to downstream products that incorporate such circuits. The ALJ also recommended that the Commission issue a cease and desist order prohibiting Samsung from selling any flash memory devices in the United States that infringe the patent claims at issue. Finally, the ALJ recommended that the Commission require Samsung to post a bond in the amount of 100 percent of the entered value of the infringing articles during the Presidential review period. On March 10, 1997, Samsung petitioned for review of nearly all of the ALJ's major findings, while the Commission investigative attorneys (``IAs'') filed a more limited petition for review of certain findings regarding the '752 patent. SanDisk and the IAs filed responses to Samsung's petition on March 18, 1997. On April 15, 1997, the Commission notified the parties that it had determined to review two issues raised by Samsung's petition for review: (1) Whether the ALJ erred in finding that Samsung could be held liable for contributory and/or induced infringement of the `752 patent; and (2) whether the ALJ erred in declining to make a determination as to whether Samsung's new design products infringe the `752 patent. The Commission requested that the parties brief a series of questions regarding these two issues. The Commission also asked the parties to provide written submissions on the proposed remedy, the public interest, and bonding. In accordance with the Commission's directions, the parties filed their initial briefs on April 28, 1997, and their reply briefs on May 5, 1997. The target date for completion of this investigation was May 27, 1997. However, on May 23, 1997, the parties jointly requested that the Commission extend the target date to June 2, 1997, in order to give the parties time to finalize a settlement agreement and to file a joint motion to terminate the investigation on the basis of the settlement. The Commission granted the motion, with the stipulation that the deadline for submission of the motion to terminate was May 30, 1997. The parties, however, were unable to reach a settlement agreement and no motion to terminate was filed, with the result that the Commission is issuing its final determinations on the violation issues under review and on remedy, the public interest, and bonding on June 2, 1997. Having reviewed the record in this investigation, including the parties' written submissions, the Commission determined: (1) To reverse the ALJ and find that Samsung is not liable for contributory infringement; (2) to reverse the ALJ and find that Samsung is not liable for induced infringement; and (3) to find that Samsung's new design products do not infringe the `752 patent due to a failure of proof. The Commission has further determined that the appropriate form of relief is a limited exclusion order prohibiting the unlicensed entry of infringing flash memory circuits, and carriers and circuit boards containing such circuits, that are manufactured by or on behalf of Samsung. The limited exclusion order does not cover any other products that may contain the infringing circuits, whether manufactured by Samsung or a third party. The Commission has further determined to issue a cease and desist order to domestic respondent Samsung Semiconductor, Inc. prohibiting the importation, selling, marketing, distributing, or advertising of infringing flash memory circuits and carriers and circuit boards containing such circuits. Finally, the Commission has determined that the public interest factors enumerated in subsections 1337 (d) and (f) do not preclude issuance of the limited exclusion order and cease and desist order, and that the bond during the Presidential review period shall be in the amount of one hundred (100) percent of the entered value of the articles in question. Copies of the Commission's order, the public version of the Commission's opinion in support thereof, and all other nonconfidential 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, S.W., Washington, D.C. 20436, telephone (202) 205-2000. Hearing impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal at (202) 205-1810. Issued: June 2, 1997. By order of the Commission. Donna R. Koehnke, Secretary. [FR Doc. 97-14838 Filed 6-5-97; 8:45 am] BILLING CODE 7020-01-P
Certain Flash Memory Circuits and Products Containing Same; Notice of Issuance of Limited Exclusion Order and Cease and Desist Order
Notice is hereby given that the U.S. International Trade Commission has issued a limited exclusion order and cease and desist order in the above-captioned investigation.