UNITED STATES INTERNATIONAL TRADE COMMISSION COMMISSIONERS Don E. Newquist, Chairman Peter S. Watson, Vice Chairman David B. Rohr Anne E. Brunsdale Carol T. Crawford Janet A. Nuzum - / Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 UNITED STATES INTERNATIONAL TRADE COMISSION Washington, DC 20436 In the Hatter of 1 ) Investigation No. 337-TA-315 CERTAIN PLASTIC ENCAPSULATED INTEGRATED CIRCUITS 1 1 NOTICE OF ISSUANCE OF LIMITED EXCLUSION ORDER AND CWEAND DESIST ORDERS AGENCY: U.S. International Trade Commission. ACTION: Notice SUWY: Notice is hereby given that the Commission has issued a limited exclusion order and cease and desist orders in the above-captioned investigation. FOR FURTHER INFORMTION CONTACT: Andrea C. Casson, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street, S.W., Washington, D.C. 20436, telephone 202-205-3105. SUPPLBHBNTARY INFORUTION: The authority for the Commission's determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C. g! 13371, and in section 210.58 of the Commission's Interim Rules of Practice and Procedure (19 C.F.R. § 210.58). On July 9, 1990, Texas Instruments Incorporated (TI) filed a complaint under section 337 of the Tariff Act of 1930 (19 U.S.C. § 1337) alleging that respondents Analog Devices, Inc. (Analog), Integrated Device Technology, Inc. (IDT), LSI Logic Corporation (LSI), VLSI Technology, Inc. (VLSI), and Cypress Semiconductor Corporation (Cypress), had imported and sold within the United States certain plastic encapsulated integrated circuits manufactured by a process covered by certain claims of U.S. Letters Patent 4,043,027 (the '027 patent). The Commission instituted an investigation of the complaint and issued a notice of investigation that was published in the on August 15, 1990 (55 Fed. Reg. 33388). On tctober 15, 1991, the presiding administrative law judge (ALJ) issued a final initial determination (ID) finding a violation of section 337 on the ground that certain of respondents' imported plastic encapsulated integratod circuits were manufactured by a procerr covered by claims 12 and 14 of the '027 patent. The ALJ found that the procepses used for manufacturing them products Far not covered by claims 1 and 1Y of the '027 patent. In addition, he found that certain other plastic encapsulated integrated circuits imported by respondents (those encapsulated using a process called "same-side" gating) were not covered by claims 1, 12, 14, or 17 of the '027 patent. On December 12, 1991, the Commission determined to review the issues of (1) claim construction md infringement of claim 17 of the '027 patent and (2) whether the claims in controversy of the '027 patent are invalid as obvious under 35 U.S.C. § 103. The Commission determined not to review the remainder of the ID. The Commission solicited comments from the parties, interested government agencies, and other persons concerning the.jssues under review and the issues of remedy, the public interest, and bonding. Complainant, all respondents, and the Commission investigative attorneys filed briefs addressing the issues under review and the issues of remedy, the public ir.Lerest, and bonding. No comments were filed by interested government agen'.it 2 or other persons. After review, the Commission affirmed the ALJ's determination that all respondents had violated section 337 in the importation of opposite-side gated plastic encapsulated integrated circuits manufactured by a process covered by claims 12 and 14 of the '027 patent. In addition, the Commission determined that respondents Analog and VLSI had violated section 337 in the importation of opposite-side gated plastic encapsulated integrated circuits manufactured by a process covered by* claim 17 of the '027 patent. Having determined that there is a violation of section 337, the Commission considered the questions of the appropriate remedy, whether the statutory public interest factors preclude the issuance of a remedy, and bonding during the Presidential review period. The Commission determined that the appropriate form of relief is a limited exclusion order prohibiting all respondents from importing plastic encapsulated integrated circuits manufactured abroad by a process covered by claims 12 and 14 of the '027 patent, and additionally prohibiting respondents Analog and VLSI from importing plastic encapsulated integrated circuits manufactured abroad by a process covered by claim 17 of the '027 patent. The'Commission further determined to issue cease and desist orders directed to each respondent. The Commission also determined that the public interest factors enumerated in 19 U.S.C. § 1337(d) do not preclude the issuance of the aforementioned relief, and that the bond during the Presidential review period covering infringing products imported or sold by respondents Cypress, IDT, LSI, and VLSI shall be in the amount of 2.5 percent of the entered value of the imported articles concerned, not to exceed SO. 50 per plastic encapsulated integrated circuit. The Commission further determined that respondent Analog will not be required during the Presidential review period to post a bond for products imported or sold. Copies of the Comission's orders and all other nonconfidential documents filed in connection with this investigation are available for inspection during official business hours (8:45 a.m. to 5:15 p.m.1 in the Office of :he Secretary, U.S. International Trade Commission, 500 E Street, S.W., Wash-ngton, D.C. 20436, telephone 202-205-2000. Hearing-impaired -2- persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on 202-205-1810. By order of the Commission. .=, .=, Kenneth R. Mason Secretary Issued: February 18, 1992 UNITED STATES INTERNATIONAL TRADE COMMISSION Washington, DC 20436 In the Matter of 1 1 Investigation No. 337-TA-315 CERTAIN PLASTIC ENCAPSULATED 1 INTEGRATED CIRCUITS 1 ORDER The Commission, having determined that there is a violation of section (19 337 of the Tariff Act of 1930 U.S.C. § 1337) in the unlawful importation and sale of certain plastic encapsulated integrated circuits manufactured abroad according to a process, which, if practiced in the United States, would be covered by claims 12, 14, and 17 of U.S. Letters Patent 4,043,027, and having considered the issues of remedy, the public interest, and bonding, hereby ORDERS that-- 1. Plastic encapsulated integrated circuits manufactured abroad according to a process covered by claims 12 or 14 of U.S. Letters Patent 4,043,027, and manufactured or imported by or on behalf of Analog Devices, Inc. (Analog), Integrated Device Technology, Inc. (IDT), LSI Logic Corporation (LSI), VLSI Technology, Inc. (VLSI), or Cypress Semiconductor Corporation (Cypress) or any of their affiliated companies, parents, subsidiaries, licensees, or other related business entities, or their successors or assigns, are excluded from entry into the United States for the remaining term of the patent, except under license of the patent owner or as provided by law. 2. Plastic encapsulated integrated circuits manufactured abroad according to a process covered by claim 17 of U.S. Letters Patent 4,043,027, and manufactured or imported by or on behalf of Analog or VLSI, or any of their affiliated companies, parents, subsidiaries, licensees, or other related business entities, or their successors or assigns, are excluded from entry into the United States for the remaining term of the patent, except under license of the patent owner or as provided by law. .. 3. Plastic encapsulated integrated circuits manufactured abroad according to a process covered by claims 12 or 14 of U.S. Letters Patent 4,043,027, assembled onto circuit boards or other similar carriers, and manufactured or imported by or on behalf of Analog, IDT, LSI, VLSI, or Cypress or any of their affiliated companies, parents, subsidiaries, licensees, or other related business entities, or their successors or assigns are excluded from entry into the United States for the remaining term of the patent, except under license of the patent owner or as provided by law. 4. Plastic encapsulated integrated circuits manufactured abroad according to a process covered by claim 17 of U.S. Letters Patent 4,043,027, assembled onto circuit boards or other similar carriers, and manufactured or imported by or on behalf of Analog or VLSI, or any of their affiliated companies, parents, subsidiaries, licensees, or other related business entities, or their successors or assigns are excluded from entry into the United States for the remaining term of the patent, except under license of the patent owner or as provided by law. 5. The provisions of this order do not apply-to downstream products (u.,computers, computer peripheral devices, telecommunications equipment, other electronic equipment, or finished components thereof.) 6. The provisions of this order do not apply to products licensed by Texas Instruments, Inc. 7. Plastic encapsulated integrated circuits which are not manufactured by a process covered by claims 12, 14, or 17 of U.S. Letters Patent 4,043,027 and which are manufactured or imported by or on behalf of Analog, IDT, LSI, VLSI, or Cypress shall be permitted entry into the United States if the manufacturer or importer provides a certification to. accompany the commercial invoice (whether filed electronically or otherwise) stating: [Name of Manufacturer/Importerl certifies that the plastic