Today, the U.S. International Trade Commission issued its delayed decision on whether it would review ALJ David P. Shaw’s Initial Determination finding no violation of Section 337 in In the Matter of Certain Wireless Devices with 3G Capabilities and Components Thereof, Inv. No. 337-TA-800.  (For some background, see our previous post on the ALJ’s

Earlier this week, the ITC issued the public version of ALJ David P. Shaw’s Initial Determination finding no violation of Section 337 in in In the Matter of Certain Wireless Devices with 3G Capabilities and Components ThereofInv. No. 337-TA-800 — the ITC’s investigation into InterDigital’s accusations that Huawei, Nokia, and ZTE infringed several

A month ago, we alerted you to ALJ David P. Shaw’s Initial Determination finding no violation of Section 337 in In the Matter of Certain Wireless Devices with 3G Capabilities and Components ThereofInv. No. 337-TA-800 — the ITC’s investigation into InterDigital’s accusations that Huawei, Nokia, and ZTE infringed several 3G-essential InterDigital patents.  Yesterday, the ITC finally released the public version of the ~450 page Initial Determination.

[337-TA-800 Initial Determination (PUBLIC)]

As we noted in our post on the parties’ respective petitions for review, while the ALJ found no infringement of any valid patent claims (and therefore no violation of Section 337), he did address the Respondents’ FRAND-related defenses — and made some interesting findings.  After the jump, we’ll take a quick look at these findings, which begin on page 417 of the Initial Determination.


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On Friday, U.S. International Trade Commission Administrative Law Judge David P. Shaw issued a Notice of Initial Determination in In the Matter of Certain Wireless Devices with 3G Capabilities and Components Thereof, Inv. No. 337-TA-800.  This investigation was originally instituted nearly two years ago based on a complaint filed by InterDigital against Huawei, Nokia, ZTE, and LG, in which InterDigital accused the companies of infringing several InterDigital patents alleged to be essential to various 3G cellular communications standards.  The evidentiary hearing was held in January 2013, and the case involves the intersection of a two issues that have drawn a lot of attention lately — the assertion of standard-essential patents at the ITC (and what if any relevance FRAND licensing obligations have to the proceedings), as well as patent infringement cases brought by non-practicing entities (InterDigital is an NPE that has been deemed a “patent troll” by some, while others take a more favorable view of the company’s activities).

So far, it appears that InterDigital’s SEP infringement assertions have failed (at least for now).  While the public version of ALJ Shaw’s Initial Determination won’t become available for at least a few weeks, Friday’s Notice indicates that ALJ Shaw found no violations of Section 337 with respect to any of the seven remaining asserted patents. 
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CAFCLater this month, Adminstrative Law Judge David P. Shaw is expected to issue an Initial Determination in In the Matter of Certain Wireless Devices with 3G Capabilities and Components Thereof (Inv. No. 337-TA-800), which is the ITC’s Section 337 investigation into InterDigital’s allegations of 3G-essential patent infringement by Huawei, LG Electronics, Nokia, and ZTE.  The upcoming ID, though, will only relate to infringement accusations against Huawei, Nokia, and ZTE — as LG had previously been terminated from the case in July 2012.  LG had been dismissed from the ITC case because LG claimed that InterDigital’s infringement allegations were an “arbitrable dispute” covered by a license agreement between the parties, and that an arbitrator — not the ITC — should decide the infringement issues.  Once the ITC terminated LG from the case, InterDigital appealed this ruling to the Federal Circuit.

Today, in a 2-1 opinion [LINK] written by Judge Sharon Prost (joined by Judge William Bryson, with Judge Alan Lourie dissenting), the Federal Circuit reversed the ITC’s decision and remanded the case to the ITC for further proceedings.  The court held that the ITC erred in terminating LG from the investigation, because the ITC failed to analyze the text of the license agreement to determine whether LG’s arguments regarding the arbitrability of the infringement dispute were “wholly groundless.”  Furthermore, the court found that when the text of the agreement was actually considered, LG’s assertions were indeed “wholly groundless,” and the infringement claims were not subject to arbitration.


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Yesterday, Huawei and ZTE filed a joint reply brief in support of their respective motions to expedite determination of the terms of a FRAND license for InterDigital’s standard-essential patents.  The parties reiterate their willingness to take a FRAND license to InterDigital’s patents and assert that a prompt resolution of FRAND issues will moot other issues and litigation and will prevent Huawei/ZTE from facing irreparable harm.
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ITC LogoThis morning, at the U.S. International Trade Commission, the hearing commenced in In the Matter of Certain Wireless Devices with 3G Capabilities and Components Thereof (Inv. No. 337-TA-800) before presiding Administrative Law Judge David. P. Shaw.  This case involves the ITC’s investigation into allegations brought by InterDigital that respondents Huawei, Nokia, and ZTE