The International Trade Commission won’t review an administrative law judge’s decision terminating a Tariff Act Section 337 investigation based on a complaint alleging goods from Apple, Broadcom, Lenovo and other tech firms infringe four GlobalFoundries patents, said a notice in Monday’s Federal Register. The judge terminated the probe Nov. 25, based on a settlement agreement GlobalFoundries reached with the tech firms earlier in the fall, said the notice.
Sonos can’t move outside China “in any reasonable or efficient manner” production of the wireless mesh network speakers it seeks exclusion from the List 4A tariffs, posted the vendor Wednesday in the Office of the U.S. Trade Representative public docket. Sonos estimates it would cost more than $15 million and take about two years to find alternative sourcing. There's “no other single market in the world” for such production, said the company, and “fragmenting our supply chain across several countries is inefficient." It imports the products under the 8517.62.00.90 heading covering a broad swatch of consumer tech products including smartwatches.
No special rules limit remedies for standards-essential patent (SEP) infringement, regardless of fair, reasonable and nondiscriminatory (FRAND) commitments, DOJ said Thursday. It was a joint policy statement with the Patent and Trademark Office and the National Institute of Standards and Technology. The agencies noted that the “rejection of a special set of legal rules that limit remedies for infringement of standards-essential patents subject to a F/RAND commitment is also consistent with the holdings of the U.S. courts to date.” The Supreme Court’s 2016 eBay decision “made clear that traditional principles of equity apply in determining whether an injunction should issue in any patent case in federal court,” they said.
TiVo and Xperi agreed to combine. The $3 billion stock deal is expected to close in Q2 and shares of TiVo rose while Xperi fell after Thursday's announcement. TiVo will suspend plans to separate its product and intellectual property licensing. “Potential” separation could occur later, they said. The product business expects to pursue "substantial cross-selling opportunities" in home and automotive. The combined company will be one of the largest licensing companies, spanning entertainment content, consumer electronics and semiconductors, management said. Patents and applications total more than 10,000, with “minimal licensee overlap,” they said. Xperi CEO Jon Kirchner noted the growing challenge of content discovery in home entertainment due to the proliferation of streaming offerings and providers: Their IP portfolio and personalization expertise will “address this challenge and participate over a much broader part of the entertainment value chain.” It’s no longer just live TV vs. Netflix, said TiVo CEO David Shull. He will be a strategic adviser during integration; for other executives, see the personals section of this publication's issue. “Virtually every traditional content provider has their own direct-to-to-consumer offering in the works,” Shull said, while streaming companies are developing content libraries. The combined firm's products will give MVPDs "a very differentiated offering,” Shull forecast. Xperi is launching a next-generation radio solution, Kirchner said, with a video offering next up. Content discovery and playback will be even more important in the age of semi- and autonomous vehicles, he said. Xperi Chief Financial Officer Robert Andersen noted its relationships with the top 10 TV brands that will offer licensing access for TiVo content discovery and personalization. He will continue as CFO. Xperi closed down 11 percent at $18.63. TiVo rose 6.2 percent to $8.38.
Comments are due Dec. 26 on the import ban Philips seeks at the International Trade Commission on Garmin and Fitbit wearable monitoring devices that allegedly infringe its patents (see 1912120031), said a notice in Tuesday’s Federal Register. Manufactured by Ingram Micro, Maintek Computer and Inventec Appliances in China, the Garmin and Fitbit activity trackers copy the patented designs of Philips’ GoSafe and HomeSafe motion biosensor and sleep diagnostics products, Philips said. It seeks a limited exclusion order and cease and desist orders against Garmin, Fitbit and the three Chinese manufacturers. "Fitbit plans to defend itself vigorously against all allegations made in the complaint," a spokesperson told us Wednesday. A Garmin spokesperson said the company doesn't comment on pending or ongoing litigation.
Expanding export administration regulation limits to further control foreign shipments to Huawei would have a “dramatic” impact on international supply chains, said Kevin Wolf, a trade lawyer with Akin Gump. The actions, which the Commerce Department is considering (see 1912110039), include expanding the direct product rule and broadening the de minimis rule. “This is a really, really big deal,” said Wolf Friday in Boston on a Massachusetts Export Center panel. “The collateral, psychological effect of this, I fear, is really going to be quite dramatic.” The changes could apply to foreign-made items that contain U.S.-origin content not controlled for national security reasons. They wouldn't apply to dual-use goods and sensitive technologies, just consumer goods, Wolf said. The rule may apply to “wholly formed made items that no other country controls, creating a jurisdictional rule for foreign companies” when selling to Huawei that would likely be difficult to comply with, he said. The rule would make dealing with foreign-made U.S. content and technology “very frustrating and difficult for foreign companies,” Wolf said, which may have a ripple effect.
The “Do Not Disturb” feature in Apple’s iOS 11 operating system infringes a nearly five-year-old patent for technology to curb distracted driving, alleged a complaint (in Pacer) Friday in U.S. District Court in San Jose. Bay Area restaurateur Nick Bovis, owner of Lefty O’Doul’s and the Broadway Grill, invented a mobile device solution he called “inactive mode” for curbing distracted driving without forcing users to turn off their phones and risk missing important calls or texts, said the complaint. The mode notifies the sender that the recipient is driving and not available to take calls or texts, then generates for the recipient a log of missed communications when the mode is deactivated, it said. Bovis landed a February 2015 patent (8,958,853) and built the technology into an app he called “Off Mode,” available for download at the Google Play store since May 2013, it said. Apple launched Do Not Disturb in iOS in September 2017 with the “same features," said the complaint. It’s “inconceivable that Apple did not know” about the Bovis patent when it launched Do Not Disturb, it said. Instead of licensing the technology from Bovis for a “reasonable royalty,” Apple “helped itself” to the invention and paid him “no compensation,” it said. Apple didn't comment.
Samsung Electronics applied to register “Samsung Ultra Thin Glass” Dec. 5 as a U.S. trademark, Patent and Trademark Office records show. The trademark would apply to a wide variety of display panels, said the application. The company is expected to use ultra-thin glass as the cover material for the next generation of its Galaxy Fold smartphones (see 1907250030). The current Galaxy Fold uses a colorless polyimide film plus a hard coat as its cover material, but the polymer coating is much less durable and scratch-resistant than glass, say analysts. Samsung didn’t comment Thursday.
The Commerce Department is considering several expanded restrictions on foreign shipments to Huawei of items containing U.S. technology (see 1911070026), said Rich Ashooh, assistant secretary-export administration. The department is discussing expanding the direct product rule that subjects certain foreign-made products containing U.S. technology to American regulations, and a broadened de minimis rule, he told a Regulations and Procedures Technical Advisory Committee meeting. Ten associations wrote Secretary Wilbur Ross last week that the potential changes “could negatively impact a wide range of commercial transactions” that don't have national security implications. BSA|The Software Alliance, CompTIA, the Information Technology Industry Council, the Semiconductor Industry Association, the Software & Information Industry Association and others said the department proposals would encourage “design-out of U.S. technology by non-U.S. firms, while also imposing massive new compliance burdens for U.S. and non-U.S. companies alike." Ashooh said Tuesday any potential rule changes would likely be subject to public comment, under the Export Control Reform Act. “The default is to go seek the public support,” he said.
The Copyright Office is 95 percent complete with GAO 2015 IT modernization recommendations, Librarian of Congress Carla Hayden told the Senate Intellectual Property Subcommittee Tuesday. Copyright Office Director Karyn Temple, who leaves the CO after eight years for the Motion Picture Association (see personals section, Dec. 10), didn’t testify. Hayden detailed IT initiatives as the CO looks to reach 100 percent “very soon.” The online recordation system will allow users to record information on copyright ownership using a digital platform. The office is launching a new public records system to allow the public to search all copyright records. She said a limited recording pilot is expected in spring 2020, a proof of concept for the public records system in late 2020 and a next-generation registration system is expected to be in “full-scale” development later that year. Congress’ initial investment in copyright modernization was about $12 million for five years, and the CO is entering year two. Monday, Chairman Thom Tillis, R-N.C., and ranking member Chris Coons, D-Del., issued a CO modernization bill draft based on subcommittee roundtables (see 1907300069). Key conclusions from the roundtables, Tillis said, are the need for improved communication and transparency for those who use the copyright system daily. It’s essential there isn’t another prolonged period without a Register of Copyrights, he added. The office is working to reduce registration pendency times, modernize IT systems and implement the Music Modernization Act, he noted. CO acting Chief Financial Officer Jody Harry testified it could staff up quickly to implement the Copyright Alternative in Small-Claims Enforcement Act, if passed (see 1910250047), and associated IT needs are “minimal.” Tillis asked about the pros and cons of potentially updating Title 17, through the legislation, to make the CO statutory and essentially align it with the Congressional Research Service at the Patent and Trademark Office. CO centralization and management is analogous to CRS independence and autonomy, Hayden said. Having the ability to interact directly with Congress is a benefit, she said.