UNITED STATES INTERNATIONAL TRADE COMMISSION Washington, D.C

UNITED STATES INTERNATIONAL TRADE COMMISSION Washington, D.C.

In the Matter of Investigation No. 337-TA-___ CERTAIN DIGITAL VIDEO-CAPABLE Docket No. 337-3492 DEVICES AND COMPONENTS THEREOF

PUBLIC INTEREST STATEMENT OF LENOVO (UNITED STATES) INC.

Proposed respondent Lenovo (United States) Inc. (“Lenovo”) submits this response to the

Commission’s solicitation of comments on public interest raised by the complaint filed by Koninklijke

Philips N.V. and Philips North America LLC on September 18, 2020. See 85 Fed. Reg. 60266 (Sept. 24,

2020).

The Lenovo group of companies are global technology leaders with a strong presence in the U.S., employing approximately 4,200 people in the U.S. in the areas of management, design, engineering, marketing, and supply chain. Lenovo generates more than $1 billion annually in economic activity in

North Carolina alone and buys more than $10 billion of goods and services from U.S. companies each year. By contrast, Complainants belong to a Dutch conglomerate and do not sell allegedly covered products of any kind.

Complainants’ complaint—which relies on third-party licensees and Complainants’ alleged licensing expenditures for its domestic industry claim—targets U.S. shipments of approximately 79.8 percent of PCs and more than 48.8 percent of computer monitors, among other types of accused products.1 Complainants acknowledge in their public interest statement that their complaint targets “two-

1 U.S. PC market share available at: https://www.statista.com/statistics/576469/united-states-quarterly-pc- shipment-share-hewlett-packard/; https://www.statista.com/statistics/576467/united-states-quarterly-pc- shipment-share-dell/; https://www.statista.com/statistics/576458/united-states-quarterly-pc-shipment- share-lenovo/. For computer monitors, Lenovo cites global market share data available at: https://www.statista.com/statistics/260452/global-pc-monitor-market-share-by-vendor/. However, respondents’ U.S. market share in monitors should be greater.

thirds of the U.S. market” for “computers.”2 For context, two-thirds is roughly 10.24 million of approximately 15.28 million units of PCs shipped in the United States in the second quarter of 2020 alone.3 Relief of that scope would harm public health and welfare, consumers, and competitive conditions in the United States, particularly given the increased demand for computers and computer monitors as a result of remote work, education, healthcare and government services during the COVID-19 pandemic. Because Complainants’ requested remedy would, if entered, have an outsized effect on U.S. technology companies including Lenovo, and on every aspect of the U.S. economy reliant on PCs and computer displays, among other types of products, Complainants’ complaint threatens significant public interest harm. Lenovo respectfully requests that the Commission delegate the public interest issue to the

Administrative Law Judge for development of the evidentiary record.

Published data from industry analysts, however, show that Lenovo was the world’s largest supplier of PCs in 2019 (accounting for more than 24% of global PC shipments), and the third largest supplier of PCs in the United States (accounting for approximately 15% of PC sales in addition to its share of computer monitor sales).4 Thus, excluding even Lenovo devices from the United States would deprive a significant number of consumers of their devices of choice and create product shortages and price spikes, especially given current COVID-19 related supply chain constraints.5 Exclusion would cause extraordinary disruption and adversely affect competition.

Moreover, Lenovo’s products contribute to virtually every sector of the U.S. economy. Some specific examples across sectors include:

2 Complainants’ Public Interest Statement at 4 (EDIS Doc. ID. 72008). 3 https://www.statista.com/topics/3149/personal-computer-pc-market-us/. 4 https://www.gartner.com/en/newsroom/press-releases/2020-01-13-gartner-says-worldwide-pc- shipments-grew-2-point-3-percent-in-4q19-and-point-6-percent-for-the-year 5 See, e.g., https://searchnetworking.techtarget.com/news/252480172/Dell-warns-of-order-delays-tech- buyers-worry-about-IT-supply-chain; https://www.statista.com/statistics/1106093/electronics-industries- impacted-by-supply-chain-delays-due-to-covid-19-worldwide.

• Economy and Remote Work: The computer is essential in the era of remote work. Sales of computers and monitors increased substantially with the onset of remote work during COVID-19. About

57% of small- to mid-sized business owners plan to adopt options for employees to work from home in the long term.6 Most office workers (83 percent) want to work from home at least one day a week, and half of employers (55 percent) anticipate that most of their workers will do so long after COVID-19 is not a concern.7 Some predict 25-30 percent of the workforce will work from at home multiple days per week at the end of 2021.8 Lenovo’s computers and monitors help meet the growing demand of this new expanded remote work environment.9

• Education and Remote Education: Lenovo computers help close the digital “homework gap” made worse by COVID-19.10 In 2018, one-in-five teens ages 13 to 17 (17%) said they could not complete homework because of lack of a reliable computer or internet connection, and 35% said they often or sometimes had to do their homework on a cellphone.11 This broadband gap was more pronounced in black and Hispanic households with school-age children and in lower income households.12 School closures for COVID-19 found a quarter of lower income teens without access to a home computer, and one-in-three school age students overall.13 Lenovo has developed resources for K-12 schools and universities to help adapt to distance working, teaching and learning.14

6 Id. 7 https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html. 8 https://globalworkplaceanalytics.com/work-at-home-after-covid-19-our-forecast. 9 Id. 10 https://www.pewresearch.org/fact-tank/2020/03/16/as-schools-close-due-to-the-coronavirus-some-u-s- students-face-a-digital-homework-gap/ 11 Id. 12 Id. 13 Id. 14 https://techtoday.lenovo.com/us/en/solutions/education

• Healthcare and Remote Healthcare: Lenovo devices are used widely at various levels of the healthcare industry, with 1,600 healthcare organizations currently using Lenovo products.15 In 2020, healthcare organizations rapidly deployed telemedicine solutions, with a 600% increase in virtual healthcare during Q1 2020. 16 Lenovo has developed resources to help clinicians and IT professionals deliver safer, more efficient, and more secure telemedicine services.17

• Government Agency Services: Lenovo’s products play an integral role in administering a variety of government services and benefits. For example, Lenovo products serve over 900 US state and local agencies, and over 70 military and civilian federal agencies.18

By contrast, Complainants do not offer directly competitive computers or computer displays that could replace respondents’ products at issue. Complainants do not manufacture competitive products and thus cannot provide substitute articles. Complainants cannot credibly suggest that their licensees or other competitors have the capacity to replace the volume of articles potentially subject to remedial orders in a commercially reasonable time, especially given the real-world supply chain and manufacturing capacity limitations made worse by COVID-19.19 Even short-term exclusion of accused products “would have a significant impact not only on [Respondent] and its employees but on consumers, merchants and institutions that rely on their products.” Certain Audio Processing Hardware and Software, and Prods.

Containing the Same, Inv. No. 337-TA-1026, Init. Det. at 94 (Dec. 8, 2017).

In sum, Complainants’ requested remedies, if entered, would harm the public interest, warranting delegation of public interest to the Administrative Law Judge for development of the evidentiary record.

15 https://techtoday.lenovo.com/us/en/solutions/healthcare 16 Id. 17 Id. 18 https://techtoday.lenovo.com/us/en/solutions/government 19 https://searchnetworking.techtarget.com/news/252480172/Dell-warns-of-order-delays-tech-buyers- worry-about-IT-supply-chain; https://www.statista.com/statistics/1106093/electronics-industries- impacted-by-supply-chain-delays-due-to-covid-19-worldwide/.

Dated: October 2, 2020 Respectfully submitted,

By: /s/ Sean C. Cunningham Sean C. Cunningham [email protected] DLA PIPER LLP (US) 401 B Street, Suite 1700 San Diego, California 92101-4297 Telephone: 619.699.2700

Attorneys for Proposed Respondent Lenovo (United States) Inc.

UNITED STATES INTERNATIONAL TRADE COMMISSION WASHINGTON, D.C.

In the matter of Inv. No. 337-TA____ ITC Docket No. 337-3492 CERTAIN ACTIVE MATRIX OLED DISPLAY DEVICES AND COMPONENTS THEREOF

I, Debby Brady, hereby certify that on October 2, 2020, a copy of Public Interest Statement of Lenovo (United States) Inc. was served on the following as indicated:

The Honorable Lisa R. Barton  Via EDIS Secretary  Via Hand Delivery U.S. International Trade Commission  Via Overnight Courier 500 E Street, S.W. Washington, DC 20436

For Complainants Koninklijke Philips N.V. and Philips North America LLC  Via First Class Mail Michael T. Renaud  Via Hand Delivery James W. Wodarski  Via Overnight Courier Adam S. Rizk  Via Facsimile Andrew H. DeVoogd  Via Email Courtney Herndon Catherine Xu Mintz Levin Cohn Ferris Glovsky and Popeo PC One Financial Center Boston, MA 02111 Tel: 617.542.6000 Email: [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Peter F. Snell Harold S. Laidlaw 1

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Mintz Levin Cohn Ferris Glovsky and Popeo PC Chrysler Center 666 Third Avenue New York, NY 10017 Tel: 212.935.3000 Email: [email protected] [email protected]

Aarti Shah Mintz Levin Cohn Ferris Glovsky and Popeo PC 701 Pennsylvania Venue NW Suite 900 Washington, DC 20004 Tel: 202.434.7300 Email: [email protected]

Adrian Kwan Mintz Levin Cohn Ferris Glovsky and Popeo PC 44 Montgomery Street, 36th Floor San Francisco, CA 94104 Tel: 415.432.6000 Email: [email protected]

For Respondents Dell Technologies and Dell Inc.

Adam D. Swain Alston & Bird The Atlantic Building  Via First Class Mail 950 F Street, NW  Via Hand Delivery Washington, DC 20004-1404  Via Overnight Courier Tel: 202.239.3300  Via Facsimile Email: [email protected]  Via Email

For Respondent Intel Corporation

Sarah E. Piepmeier  Via First Class Mail Perkins Coie  Via Hand Delivery 505 Howard Street, Suite 1000  Via Overnight Courier San Francisco, CA 94105-3204  Via Facsimile Email: [email protected]  Via Email

For Respondent HP Inc.

Sean Cunningham  Via First Class Mail DLA Piper LLP (US)  Via Hand Delivery 2

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401 B Street, Suite 1700  Via Overnight Courier San Diego, CA 92101-4297  Via Facsimile Tel: 619.699.2700  Via Email Email: [email protected]

Hisense Co. Ltd.  Via First Class Mail Hisense Tower  Via Hand Delivery No. 17 Donghaixi Road  Via Overnight Courier South District, Qingdao  Via Facsimile Shandong Province 266071  Via Email P.R. China

Hisense Visual Technology Co., Ltd. (f/k/a Qingdao  Via First Class Mail Hisense Electric Co., Ltd.)  Via Hand Delivery No. 218 Qianwangang Road  Via Overnight Courier Qingdao Economic & Technological  Via Facsimile Development Zone  Via Email Qingdao, Shandong Province 266555 PR. China

Hisense Electronics Manufacturing Company of America Corporation  Via First Class Mail 7310 McGinnis Ferry Road  Via Hand Delivery Suwanee, Georgia 20024  Via Overnight Courier  Via Facsimile  Via Email

Hisense USA Corporation  Via First Class Mail 7310 McGinnis Ferry Road  Via Hand Delivery Suwanee, Georgia 20024  Via Overnight Courier  Via Facsimile  Via Email Hisense Import & Export Co. Ltd. Hisense Tower  Via First Class Mail No. 17 Donghaixi Road  Via Hand Delivery South District, Qingdao  Via Overnight Courier Shandong Province 266071,  Via Facsimile P.R. China  Via Email

Hisense International Co., Ltd.  Via First Class Mail Hisense Tower, Floor 22  Via Hand Delivery No. 17 Donghaii Road  Via Overnight Courier South District, Qingdao,  Via Facsimile Shandong Province 266071,  Via Email P.R. China 3

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Hisense International (HK) Co., Ltd.  Via First Class Mail Room 3101-3105,  Via Hand Delivery Singga Commercial Centre  Via Overnight Courier No. 148 Connaught Road West  Via Facsimile Sheung Want, Hong Kong (SAR)  Via Email

Hisense International (Hong Kong) America  Via First Class Mail Investment Co., Ltd.  Via Hand Delivery Room 3101-3105  Via Overnight Courier Singga Commercial Centre  Via Facsimile No. 148 Connaught Road West  Via Email Sheung Wan, Hong Kong (SAR)

LG Electronics, Inc.  Via First Class Mail LG Twin Towers  Via Hand Delivery 128, Yeoui-daero, Yeongdengpo-gu  Via Overnight Courier Seoul, Republic of Korea, 07736  Via Facsimile  Via Email

LG Electronics USA, Inc.  Via First Class Mail 1000 Sylvan Avenue  Via Hand Delivery Englewood Cliffs, New Jersey 07632  Via Overnight Courier  Via Facsimile  Via Email

TCL Industries Holdings Co., Ltd.  Via First Class Mail 9 Floor, TCL Electronics Holdings Limited  Via Hand Delivery Building, TCL International E City, #1001  Via Overnight Courier Zhongshan Park Road, Nanshan District,  Via Facsimile Shenzhen, Guangdong, 518067  Via Email P.R. China

TCL Electronics Holdings Ltd. (f/k/a TCL Multimedia  Via First Class Mail Technology Holdings Ltd.)  Via Hand Delivery 7/F, TCL Building, 22 Science Park E  Via Overnight Courier Hong Kong Science Park  Via Facsimile Hong Kong (SAR)  Via Email

TCL King Electrical Appliances  Via First Class Mail (Huizhou) Co. Ltd.  Via Hand Delivery No. 78 Zhongkai Development Zone  Via Overnight Courier Huizhou, 516006  Via Facsimile P.R. China  Via Email

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TTE Technology, Inc.  Via First Class Mail 555 South Promenade Avenue, Suite 103  Via Hand Delivery Corona, CA 92881  Via Overnight Courier  Via Facsimile  Via Email

TCL Moka International Ltd.  Via First Class Mail 7/F Hong Kong Science Park, Bldg. 22 E  Via Hand Delivery 22 Science Park East Avenue  Via Overnight Courier Sha Tin, Hong Kong  Via Facsimile  Via Email

TCL Moka Manufacturing S.A. de C.V.  Via First Class Mail Calle 4ta, No. 55, Cd. Industrial  Via Hand Delivery 22444 Tijuana, B.C., Mexico  Via Overnight Courier  Via Facsimile  Via Email

TCL Smart Device (Vietnam) Company Ltd.  Via First Class Mail No. 26 VSIP II-A, Street 32  Via Hand Delivery Vietnam Singapore Industrial Park II-A  Via Overnight Courier Tan Binh Commune,  Via Facsimile Bac Tan Uyen District,  Via Email Binh Duong Provice, 75000 Vietnam

MediaTek Inc.  Via First Class Mail No. 1, Dusing 1st Road,  Via Hand Delivery Hsinchu Science Park  Via Overnight Courier Hsinchu, 30078 Taiwan  Via Facsimile  Via Email

MediaTeck USA Inc.  Via First Class Mail 2840 Junction Avenue  Via Hand Delivery San Jose, CA 95134  Via Overnight Courier  Via Facsimile  Via Email

Realtek Semiconductor Corp.  Via First Class Mail No. 2, Innovation Road II  Via Hand Delivery Hsinchu Science Park  Via Overnight Courier Hsinchu 300, Taiwan  Via Facsimile  Via Email

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/s/ Debby Brady Debby Brady Legal Secretary DLA Piper LLP (US)

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